The commercial real estate sector is booming largely on the back of unprecedented growth in the business process outsourcing (BPO) industry, according to a top official of Teleperformance Philippines.
“There is a huge demand for BPO spaces. In fact, Teleperformance has signed up for additional space and multiply that for the players we have it here in the Philippines. This how much the demand for real estate in the Philippines is,” Teleperformance Chief Financial Officer Roberto Pe Benito Jr. told The Manila Times.
Teleperformance Philippines opened new sites in the cities of Antipolo and Davao in 2013.
“The BPO offices also driving real estate [development]for retail shops, residential and condominium. All are benefiting from the entire cycle of call centers and BPO. The key catalyst in real estate now is BPO and call center business. There a whole lot of economic development it has domino effect from call centers to the other industries and surrounding area,” he added.
Teleperformance this year marks its 18th year of growth and success in the Philippine. The company operates more than 11,500 workstations from 12 business sites across Metro Manila, and the cities of Antipolo, Bacolod, Cebu and Davao.
Teleperformance had 20,000 employees as of October last year, and the new target is to double it by expanding to the “new wave cities” identified for the expansion by the BPO industry.
According to Liger Capital Management’s “Philippine Real Estate Report,” supply of office space in the country is anticipated to substantially increase from various properties coming online over the next few ears. In Metro Manila, over one million square meter of office space will be made available by 2014. Nevertheless, demand from offshoring, outsourcing and information technology is expected to further increase.
As of 2012, the BPO sector accounted for 5.9 percent of Philippine gross domestic product (GDP) and employed almost 800,000 Filipinos. In 2016, the share of the sector will increase to 8.3 percent with 1.3 million people employed. This will require an increase in office space and employee housing.