Baguio City, Davao City, Dumaguete City To Be Develop For BPO Market

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Baguio City, Davao City, and Dumaguete City are among the urban communities considered the “following 10 urban communities” for the Business Process Outsourcing (BPO) area, driven by the present organization’s pushed for local development, as indicated by a report by land consultancy firm Pinnacle.

In a report by Pinnacle Real Estate Consulting Services, Inc. on Monday, it noticed that the vigorous interest for office space from the BPO business is changing the scene of various urban communities.

With substantial measure of office space getting to be accessible in Metro Manila in the coming years, BPO organizations may search for different areas later on keeping in mind the end goal to move far from rivalry for assets and gifted laborers, the report clarified.

“Over one million square meters of office are projected to open in the next two years in major business districts in Metro Manila, breaching the seven million square meter-mark,” Pinnacle said.

The report noted that the development happening in provincial areas is “typically positioned as counter-balance to decongest mono-centric development.”

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Aside from the booming BPO market in Metro Manila, Pinnacle noted that the BPO sector is also “heavily” driving the demand for office spaces in Cebu.

“There is a total of approximately 700,000 square meters of Grade A office spaces [Cebu]. Average rents are slightly higher than Php 500 per sqm per month, which is substantially lower than the Makati and BGC business districts. Vacancy of office space is likewise a low 5 percent, keeping the rents stable,” Pinnacle said.

Other than Cebu, the report named other provincial markets that it dubbed the “Next 10 Cities” that will attract BPO companies.

Baguio City, Davao City, Dumaguete City, Iloilo City, Lipa City, Metro Bulacan (Baliuag, Calumpit, Malolos City, Marilao and Meycauayan City), Metro Cavite (Bacoor City, Dasmariñas City and Imus City), Metro Laguna (Calamba City, Los Baños and Sta. Rosa City), Metro Naga (Naga City and Pili), and Metro Rizal (Antipolo City, Cainta and Taytay) were identified as future hotspots for BPOs.

The components pulling in BPO organizations to these business sectors are sound demographics and moderately created foundation in these urban communities, Pinnacle said.

In a different report by CBRE Philippines, it noticed that BPO organizations search for areas outside of the Metro where they can take advantage of the work pool.

As per the land counsel, Metro Manila would be the need area for these outsourcing organizations, however more than 70 percent of BPO employments today region situated in Metro Manila, which means around 62 percent of the Metro Manila ability pool has as of now been retained.

“These companies are locating outside Metro Manila where there is more untapped labor and where they have less competition and limited poaching,” CBRE said

Pinnacle noted that expected attention on provincial markets is also influenced by the current administration’s thrust for regional development.

“President Duterte is committed to disperse spending and development in the provinces,” the report said.

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Apart from office spaces, Pinnacle noted that the next ten cities these markets would also probably see developments in other real estate sectors such as residential, commercial-retail and hotel.

“With the push of President Duterte to disperse spending and growth, development of these “Next 10 Markets” is likely to happen sooner,” the report concluded.




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