GLOBAL real estate management firm Colliers believes that the growth of some real estate sectors will become driven by various investments.
Research Associate Director Joey Bondoc said there have been several movements already.
An example of this is D.M. Consunji Inc.'s (DMCI) plan to bid for three more contracts of the Metro Manila Subway project while waiting for the Department of Transportation's call for bidders.
DMCI, together with Japan's Nishimatsu Construction Co. Ltd., already bagged contract package 102 of the project which covers Quezon Avenue and East Avenue stations.
"The Metro Manila Subway project is one of the Philippine government's initiatives to ease traffic congestion and reduce travel time within the capital region. Once completed, the project should further unlock opportunities in Metro Manila's fringe areas," Bondoc elaborated.
He added that developers must look at retail and leisure opportunities around the nodes of these subway stations, actively monitor other railway projects in the pipeline such as the Makati Subway, North-South Commuter Railway, MRT 7 and LRT 1 Cavite Extension and implement strategic landbanking in locations near the stations of these projects.
Another movement is the Board of Investments approving the registration of Optum Global Solutions, a business process outsourcing firm focused on health care information management services, in Cebu City.
"In the second quarter of 2022, office vacancy in Cebu improved to 27.7 percent from 29 percent a quarter ago. We project net absorption to reach 74,900 square meters, up 50 percent year on year, which will likely be supported by take-up from outsourcing firms," Bondoc said.
"We believe that Cebu will likely retain its stature as an outsourcing hub outside Metro Manila given its competitive talent pool, improving infrastructure and availability of office spaces."
He continued that this is supported by data from the IT Business Process Association of the Philippines, which show that the provinces now account for about 30 percent of the 1.44 million total IT-BPM (information technology and business process management) employees in the country, and said Cebu is an in-demand provincial outsourcing location.
Lastly, investments approved by the Philippine Economic Zone Authority (PEZA) reached P57 billion in the 11-month period of 2022, down 11.5 percent year on year.
"According to PEZA, despite less approvals, these investments involve 181 projects and have generated about 1.8 million jobs as of October 2022. Moreover, PEZA officials also met with Japanese firms to entice more companies to invest in the country, while both Nakashima Propeller Co. Ltd. and Showa Spring Co. Ltd., are planning to expand in the Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon) region," Bondoc explained.