The Business Process Outsourcing (BPO) industry was not only expected to create more jobs for Filipinos. Still, it would also help fill up available office spaces in prime business locations and “next-wave” cities. This offshore call center trend has a clear impact on the real estate sector. With the rise of the BPO industry comes the growth of commercial real estate in the country.
The position of the commercial/office sector of the Philippine Real Estate industry is driven by the upsurge in the number of BPO companies setting up shop in the Philippines. The employment and income impact generated by these companies, in turn, fuel a consumer boom that has resulted in the take-up of more commercial spaces.
According to past records, the real estate industry is just now recovering from the effects of the 1997 Asian financial crisis, which brought the Philippine Real Estate sector into a long decline. According to sources, the recovery of the construction and retail industries is being attributed to the booming BPO sector, particularly the Philippines business process outsourcing call center subsector.
Because there is a strong demand for office spaces from contact centers, the real estate sector has been flexible, posting double-digit growth after contracting from 1998 to 2002. Increases in building construction and office spaces for BPO firms were most notable in the Makati, Ortigas, Libis, and Taguig areas. Further, call center sites have expanded in provinces such as Cebu, Davao, and other areas outside Metro Manila.