MANILA, PHILIPPINES – The development of the Philippines’ real estate market continues to be tied to its BPO sector. According to the real estate services and investment management company Colliers, BPO firms have begun expanding into provincial locations like Bohol and Cavite.
There are three key reasons for their decision:
- Provincial hubs are more cost-effective than Metro Manila and other urban hubs.
- They can gain access to fresh talent pools.
- In supporting rural development, they can receive favorable government incentives.
BPO Giants Are Leading the Charge
The sector can view this expansion as a signal that the provincial hubs are “maturing” and are “capable of supporting large-scale operations.” The office take-up in provincial locations of prominent BPO firms is proof of that.
- Concentrix has 17,400 sq. m.
- Asurion has 14,400 sq. m.
- Teleperformance has 7,500 sq. m.
In Bohol and Cavite, specifically, 17,500 sq. m. and 27,000 sq. m., respectively, are being developed for BPO office spaces.
Implications on the Industry
Expanding into the provinces is a strategic advantage in the BPO sector. Colliers says that BPO firms now have more opportunities to be “more intentional in site selection.” These allow them to operate in places that can help them scale and be more resilient amid ongoing changes in global policy and technological disruption.
On another note, the industry can widen and diversify its geographic locations across the Philippines. Not only do they have more site locations to offer foreign investors, but they can also increase rural development.
