The robust business process outsourcing (BPO) industry and the growing tourism sector are driving developers to build projects outside of Metro Manila, top real estate practitioners said.
“Growth of the BPO market and the tourism market in areas outside of Metro Manila has resulted in the growth of mixed-used projects,” Jones Lang Lasalle Philippines Head of Research, Consultancy and Valuation Claro Cordero Jr. said during the Property Report Congress Philippines on Thursday.
In the same congress, Jones Lang Lasalle Country Manager Lindsay Orr noted that growth is particularly seen in the hotel sector.
Orr said the country’s hotel sector is set to even get bigger in the next couple of years, forecasting a 50-percent increase in the number of hotel rooms in the next four years.
He said at present, the country has 112 hotels with more than 24,500 rooms, while an additional 30 hotels are expected to be completed between 2016 and 2020, adding an estimated 12,200 rooms to the current hotel supply.
Meanwhile, Cordero noted that at present, there are about 3,000 hectares of land outside Metro Manila that are currently being developed. Cordero said this land could be used for the development of projects in the office, residential, retail and hotel sectors.
“There is a growing demand for these provincial sectors, especially for BPO centers since majority are going to be now in areas outside of Metro Manila, Cordero said. “Developers are going to expand to set their footprint in places such as Cebu and Davao.”
Megaworld Senior Vice President Jericho Go echoed Cordero’s sentiment as he said the demand for BPO is driving developers to go outside of Metro Manila to be able to tap the larger labor pool.
“What we realize is that when we started to develop BPO in Metro Manila, soon we would be needing to tap into the provincial labor pool,” Go said.
Go noted that to preserve the country’s growing BPO market, there is a need to expand to other business hubs in the country.
“In order to preserve market share, we need to tap into other centers like Cebu, CDO, Bacolod, Davao,” Go concluded.