Despite the slow global growth of the real estate industry, Philippines has remained one of the strongest performer in the region. According to the 2016 April Report of The World Bank, it is predicted that it will remain strong and is projected to accelerate by 6.4 percent in 2017.This proves that the real estate industry is one of the steadiest industries in the Philippines even in the coming years. Its success is closely attributed to the steady incline of the Philippine economy in general. During the same period, the demand for office space has remained very strong thanks to the continuous growth of outsourcing in the Philippines. The demand for residential condominium will also maintain an upward trend. While these statements in collective, reflect a boom in the property/real estate industry, the success of this industry relies on the demand for the other top industries in the Philippines like business process outsourcing, hospitality and leisure, manufacturing, and construction.
In the Philippines, business process outsourcing, hospitality and leisure, manufacturing, and construction are industries that have dependence for good locations. Most of these industries rely on the effectiveness of the location that they can acquire to be able to advance from their competitors. This is where the industry of real estate comes into picture in aiding the other industries. If we look at it closely, if there is a demand for infrastructures, there is also a demand for construction which strings the relationship of real estate to the construction firms. The residential space demand in the second quarter of 2016 has been positive due to the economic activity. The vacancy rate of luxury condominiums in Makati and BGC has decrease to 6.3% from last year’s 7.5 percent.
The progressing climb of the BPO industry in our economy is one of the contributing factors for the success of the real estate industry. Location is one of the factors that BPO agents consider in choosing a BPO to work for. Among the most sought after office locations are those that are around Metro Manila districts, Ortigas, Makati. These areas has remained the largest contributor of office area supply in the 2nd quarter of 2016 with an approximately 2.7 million square meters. Other urban districts like Bonifacio Global, McKinley Hill, Bay City, Quezon City and Alabang comprise an additional 3 million square meters of office space.
Due to increase of global risk that is brought by the future separation of the United Kingdom form the European Union, Asia will sure be shouldering the investors that will seek refuge for an alternative location. This will put Philippines into an advantageous situation as it is considered as one of the better choices for an office location. This will put the outsourcing industry to a more stable ground and will contribute to providing job opportunities for more Filipinos.
These data represent not just the success of real estate industry thus far in 2016 but it also shows how the outsourcing industries in the Philippines can affect real estate.