From 2,000 employees in 2001, the BPO sector registered 250,000 workers in 2006 with $3 billion worth of generated revenues, according to figures presented in February by the Department of Trade and Industry’s e-Services Philippines. Analysts project that the number of BPO workers will further grow to one million in 2010.
Such a phenomenon has significantly driven the success of the property industry, which is now in a frenetic pace of construction due to the large demand for office spaces.
"The steady growth of the BPO industry in the Philippines increased the demand for more offices," said Frederick Salcedo, senior vice president for commercial Services of Century Properties Management, Inc.
Citing the latest study of the property research and consulting firm Colliers International, Salcedo said that office space vacancy rate has dropped to 3.9 percent in the last quarter of 2006, and is expected to further dip to 2.7 percent at the end of the year.
As this happens, the bullish BPO sector is estimating a requirement of three million square meters of office space by 2010, states a property industry report by a local newspaper. More than half of this demand will be met as the sector presently occupies "700,000 square meters in Makati and Ortigas" and several property firms are constructing, and committed to build about "900,000 square meters" more. Still, there is an expected shortage of about "1.4 million square meters of office space by 2010."
With such a high demand for office space but very low supply, rental rates "are nearing the P1,000 per square meter level," Salcedo of Century Properties said.
For more information, visit www.centurycity.com.ph.