Business process outsourcing industry was not only expected to create more jobs for Filipinos but would also help fill up available office spaces, both in prime business locations and in “next-wave” cities. There is a clear impact on the real estate sector from this offshore call center trend. With the rise of the BPO industry comes along the growth of commercial real estate in the country.
The position for the commercial/office sector of the Philippine Real Estate industry is driven by the upsurge in the number of Business Process Outsourcing (BPO) companies that are setting-up shop in the Philippines. The employment and income impact generated by these companies in turn fuel a consumer boom that has resulted in the take-up of more commercial spaces.
With the past records of the real estate industry, it is just now recovering from the effects of the 1997 Asian financial crisis that brought the Philippine Real Estate sector into a long fall down. According to sources, the existing recovery of construction and retail industries is being attributed to the booming BPO sector, particularly the Philippines call center subsector.
For the reason that there is a strong demand for office spaces from contact centers, the real estate sector has been flexible posting double digit growth after contracting from 1998 to 2002. Increases in building construction and office spaces for BPO firms were most notable in Makati, Ortigas, Libis, and Taguig areas. Further, call center sites have expanded in the provinces such as Cebu, Davao and other areas outside Metro Manila.