This week, Colliers Research provides insights on Filinvest Land’s new condo development in Zamboanga City and why the development of key cities outside Metro Manila will play an important role in helping the government achieve inclusive growth. Meanwhile, IBPAP announces that almost 30% of the country’s 1.4 million BPO workforce came from outside Metro Manila. According to IBPAP, digitalization is one of the main factors driving IT-BPM companies to expand in the provinces.
First residential condominium to rise soon in Zamboanga
Filinvest Land Inc. (FLI) is developing the first-ever condominium project in Zamboanga City. Futura Vinta is a mid-rise condominium project that will be developed along Vitaliano Agan Avenue. FLI president Tristan Las Marias hopes that the developer’s investment will support the region’s continued economic expansion. FLI is investing PHP1.3 billion (USD23.6 million) to complete the midrise project. FLI has two other subdivision projects in Zamboanga City.
Colliers Philippines believes that the development of key cities outside of Metro Manila plays an important role in helping the government achieve inclusive growth. The development of vertical residential projects aside from the construction of the typical horizontal units also signifies a gradual shift in residential preferences, paving the way for a more diverse residential offerings in the market. Zamboanga Peninsula’s economy grew by 5.7% in 2021 while construction rose by 10.4% from an 18.5% contraction in 2020. Given these indicators, developers should further explore Zamboanga’s viability for more residential projects.
Provinces now account for 30% of BPO jobs
Data from the IT and Business Process Association of the Philippines (IBPAP) show that workforce in the outsourcing industry reached 1.4 million as of the end of 2021. According to IBPAP, 29% of the total workforce or about 420,000 workers came from the provinces, up from only 270,000 in 2016. Top provincial locations for outsourcing firms include Bacolod, Cebu, Clark, Davao, and Iloilo. IBPAP president and CEO Jack Madrid noted that digitalization is one of the main factors driving Information Technology and Business Process Management (IT-BPM) companies to expand in provinces. Meanwhile, revenues generated by the sector reached USD30 billion (PHP1.5 trillion) in 2022, contributing about 7.5% to the country’s gross domestic product.
Colliers recorded 47,500 square meters (511,300 square feet) of provincial office transactions in Q1 2022, or about 25% of total office deals across the country. Most transactions recorded were from Cebu (23,500 square meters), Davao (17,000 square meters), and Pampanga (4,400 square meters). In our view, these provinces should benefit from the government’s decentralization program and push to improve digital infrastructure outside Metro Manila. Colliers recommends that occupiers, particularly outsourcing companies, take advantage of the available talent pool and upcoming office space in key provinces. From 2022 to 2025, we see the delivery of about 604,300 square meters (6.5 million square feet) of office space in Cebu, Pampanga, Bacolod, and Iloilo. The additional tax incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law should also encourage occupiers to consider expanding in provincial locations.