Real Estate Industry Seen to Continue Upward Growth
All sectors under the real estate industry are seen to continue upward growth, according to investment management firm JLL in its preliminary Metro Manila Property Market Overview report.
Among the key drivers of the real estate demand are mainland Chinese investors, which are seen to diversify into other industries aside from offshore gaming.
Sustaining this demand are business process outsourcing (BPO), online gaming, and other tech-driven companies, according to JLL.
The firm’s research and consultancy director Janlo de los Reyes on Thursday, April 11, said that despite the increasing real estate demand from BPO and online gaming firms, vacancy levels will remain healthy at 6%.
All Sectors Growing
Aside from BPO and online gaming, JLL also saw flexible workspaces as one of the leading sources of office space demand in the 1st quarter of 2019.
The continuous domination of the millennial generation in the overall Philippine employment population will influence in the change on work culture, driving the popularity of flexible workspaces in the Philippines,” read JLL’s statement released on Thursday.
“This is seen to boost the demand for office spaces from flexible workspace providers with the millennial generation penetrating this type of work environment.”
A spillover of office space demand is also expected in Bacolod, Cagayan de Oro, Cebu, Clark, Davao, and Iloilo amid shrinking spaces in Metro Manila and economic growth in provinces due to the government’s Build, Build, Build program.
Growth outside Metro Manila
Noting the growth spreading outside Metro Manila, De Los Reyes said that the next areas investors should be on the lookout for are Clark, Cebu, and Davao. Clark was seen as the closest area for offices for relocation.