The first quarter of 2019 for the Philippines looks rosy as offshore gaming space demand is on the rise. Currently, consulting firm Pronove Tai said the Philippine offshore gaming operators (POGO) are receiving pre-leasing as the demand for spaces are on the rise.
Manila Bulletin reported the demand during the first quarter increased by 118% year-on-year to 106,000 square meters (sqm). Monique Cornelio Pronove, Pronove Tai president and chief executive officer, said through a statement released last month that POGOs resorted to pre-leasing or allowing prospective clients to lease on establishments that being planned to be built in the future.
“Pogo’s leasing behavior has evolved into pre-leasing [leasing before the building has been completed] to match their requirements. Since there is very limited available space in Makati and Bay Area, they have already ventured into locations such as Pasig and Parañaque,” she said.
According to the company’s Metro Manila Office Market Overview, there is a 40% increase in office space demand while bringing the real estate industry up too. The supply of office spaces in cities within Makati and Taguig grew 3% to 276,000 sqm during the first quarter.
Aside from online gaming, other factors that contributed to the growth are business process outsourcing (BPO) and other tech-driven companies, according to JLL’s Metro Manila Property Market Overview (PMO) report for the first quarter.
JLL specified the mainland Chinese investors are contributing to the demand when it comes to offshore gaming and office and residential space demand.
“We could see interest still coming from mainland Chinese investors looking into investing 300 hectares, 500 hectares,” JLL research and consultancy director Janlo de los Reyes told Rappler.
“Definitely, there is a big chunk of demand coming from China, but what we expect to see in the coming months, in the coming years, it’s going to diversify [to other industries]. We’re gonna see more industries from mainland China coming [into] the Philippines,” he added.
Despite the demand for office spaces, the real estate industry is also increasing its supply. So far, there are real estate firms offering pre-leasing agreements, accommodating more international companies in the Philippines. There is no doubt outsourcing in the Philippines is great for the business. Aside from low labor costs and a high percentage of English-speaking professionals, offshoring companies also experience tax cuts and government support.
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