COLLIERS International Philippines is urging the business process outsourcing (BPO) industry to expand in provincial areas given the government’s bid to spark a “golden age of infrastructure”.
“The ushering in of the ‘golden age of infrastructure’ lends support to the government’s decentralization push which should unlock land values in areas outside of Metro Manila and stimulate business activities in the countryside,” the property consultancy firm said in a recent report.
“Given this, we recommend that developers zero in on the thriving opportunities outside of the country’s capital,” it noted.
Hotel developers should focus on the rising number of domestic tourists and the growing popularity of staycations by building two- to four-star hotels in Iloilo, Cagayan de Oro, Bohol, Bacolod and Davao where regional airports are undergoing expansion and modernization, Colliers noted.
“Thus we recommend developers to build socialized to affordable housing projects in provinces that are major sources of migrant workers and where developable land is relatively cheaper,” it added.
Developers were also urged to seek viable locations for industrial park development beyond Cavite, Laguna and Batangas to meet rising demand for industrial space from current locators and Filipino conglomerates diversifying into manufacturing.
“Over the near to medium term, we see the Philippines sustaining robust growth on the back of the government’s infrastructure and decentralization push,” Colliers said, noting that the property sector is among the key economic segments hat will benefit from the government’s plans.
“Infrastructure implementation coupled with decentralization should spur the growth of office, residential, retail, industrial, and hotel & leisure segments,” it said.