This week, Colliers Research provides insights on three India-based BPO firms expressing interest in setting up operations in Davao City and why this can potentially further boost the city’s office market, and Sonora Garden Residences – a three-tower condo development of Robinsons Land and DMCI Homes – reaching 60% completion as of March 2022.
3 Indian BPO firms consider setting up shop in Davao
Three Indian business process outsourcing (BPO) firms are looking to expand in Davao City. Samuel Matunog, president of Information and Communications Technology (ICT) Davao, recently met with representatives of the three firms to discuss available Philippine Economic Zone Authority (PEZA)-registered office spaces in the city. One of the companies is AGS Health, a healthcare outsourcing firm providing services on medical coding, billing, insurance, and revenue cycle management. AGS Health is planning to hire 1,500 agents within the first three years of operations. The two other companies are an outsourcing firm that already has several offices nationwide, and a multinational information technology (IT) firm.
Colliers recorded 18,700 square meters (201,300 square feet) of transactions in Davao in Q1 2022, up 57% YOY. Davao accounted for 39% of total provincial office deals during the period. Colliers recommends that landlords highlight the availability of PEZA-proclaimed office spaces in Davao. As of 2021, the city has a total of 55,000 square meters (592,000 square feet) of available PEZA office space. Among the buildings completed since 2020 are Robinsons Cybergate Delta 2, Damosa Diamond Tower, and the office components of Aeon Towers and Inspiria Condominium. Developers should also highlight Davao’s infrastructure and disaster resiliency, which will likely be among the major considerations of outsourcing firms planning to locate outside Metro Manila. Data from Cities and Municipalities Index showed that Davao was the fourth most competitive highly urbanized city in 2021, ranking third in terms of infrastructure and sixth in disaster resiliency.
RLC-DMCI project on track for completion by 2024
The construction of the first tower of Robinsons Land Corp. (RLC) and DMCI Homes joint-venture project, Sonora Garden Residences, is over 60% complete as of March 2022. The three-tower condominium development has a land area of about 1.5 hectares (3.6 acres) within Robinsons Place Las Piñas complex along Alabang–Zapote Road. The sizes of the condominium units range from 28 to 81.5 square meters (301–877 square feet). About 70% of the development is allocated for open spaces, gardens, and amenities such as swimming pools, basketball court and sky lounges.
Colliers data show that the average take-up rate of local joint-venture projects reached 85% as of Q1 2022. Colliers recommends that developers seize opportunities in the market by partnering with other local players in launching mid-income to luxury projects (PHP3.2 million and above per unit). These price segments accounted for 75% of condominium take-up in Q1 2022. Colliers believes that developers should also highlight the projects’ upscale amenities, proximity to key infrastructure and attractive and flexible payment terms. With about 24,600 new units due to be completed from 2022 to 2024, Colliers encourages developers to further differentiate and highlight the advantages of living in an integrated community.