CBRE Philippines Founder and Chairman Rick Santos stated during a press conference that the property sector of the Philippines will remain strong. The industry is said to be propelled by its remarkable performance last year in all real estate segments namely office, residential, retail, and leisure. In addition to that, it was witnessed that while markets in Asia experienced a slowdown, the Philippines remained resilient.
Also, amidst the series of unfortunate events that the Philippines went through in 2013, the local real estate sector remained afloat and foreign investors began noticing the country as a premier investment destination.
Santos stated that vacancy rates are below five percent due to the high demand from the market. Rental rates in national commercial business districts (CBDs) began increasing, but are still found to be one of the sources of affordable investment properties all over the world at $26 per square foot annually. Amongst all the major international CBDs, Makati is still offering the lowest rents for prime spaces.
Meanwhile, CBRE Vice-chairman Joey Radovan said information technology - business process outsourcing (IT-BPO) sector accounts for majority of office space take-up in the country. Moreover, he said Metro Manila and Metro Cebu continue to gain traction as the best outsourcing destinations worldwide, and are climbing the list of top 10 outsourcing destinations in the world.
Even alternative delivery locations are experiencing more investment activities as large and mid-sized firms expand operations. He added that for this year, the anticipated 600,000 square meters of office space occupancy this year will be made up of outsourcing operations for call center and back office processes.
Santos predicted that the BPO sector will continue to develop due to the demand for back office outsourcing from banks and financial institutions from developed countries.