2015 is upon us. What does the forthcoming year herald for the property industry? According to experts, the market for real estate is poised for further growth, thanks to several key factors.
While in our previous article
we noted how the ASEAN integration would spell profit for investors and developers, here, take a look at how one industry, in particular, has almost single-handedly fueled the demand for office spaces, prompting developers left and right to erect high-rise towers to accommodate their growing businesses.
2. The BPO industry
Research and consultancy firm Tholons recently named Manila as the second most popular location for business process outsourcing (BPO) in the world . Six other Philippine cities made it on the list: Cebu, Davao, Sta Rosa in Laguna, Bacolod, Iloilo, and Baguio City ranked among the firm's Top 100 destinations for this industry. source
In the Philippines, BPOs make up the top market for office spaces. source
In 2014, BPOs accounted for more than 50 to 60 percent of the total take-up in the office sector according to JLL.
Additionally, the BPO industry could rake in $48 billion in revenue and double its number of employees by 2020, said Vikrant Khanna, a principal of Tholons. source
With an average growth rate of 20 percent per annum, all eyes are fixed on the BPO sector and its continued ascent. Aside from fueling demand for office spaces, BPOs provide employment and disposable income to the middle class, which should further growth in the retail sector of property development.source
A proven, robust market to tap into, BPOs can be counted upon to keep the property sector growing in 2015. Next up, take a look at how Overseas Filipino Workers can impact the local real estate industry in the coming year.