BPOs Drive Real Estate Growth

Business Mirror , 02-16-2012

AFFORDABLE real estate rates and the country's college educated labor force have made the Philippines the No. 2 business process outsourcing (BPO) destination in the world and the No. 1 destination for contact centers.

Michael McCullough, Managing Director at KMC MAG Group, one of the country's leading real estate brokerage firms said "most of the new additions to the supply of commercial spaces are targeted to meet BPO s demand for office". Citing the KMC MAG Group 2011Q3 Real Estate Market Report,McCullough said while the Makati area is expected to increase its commercial real estate stock with the opening of the Zuellig Building on the first half of 2012,commercial real-estate stock as well as occupancy rates for BPOs continue to rise in non-central business districts such as Bonifacio Global City, Eastwood City, Quezon City, Pasay and Alabang.

In all these places the rising demand for commercial space has led developers to build to provide for the industry that is reported to have been growing by an annual average of 160 percent in the last five years.

"The BPO industry enables the country to enjoy a steady growth in annual revenue while covering about 15 percent of global outsourcing markets. Business Processing Association of the Philippines also states in itsRoad Map 2011-2016,that the BPO industry has the potential to post an estimated 20 million in revenue,  and possibly 25 million with a better public-private partnership," McCullough added.