Companies that need office space for lease in the Philippines will find more options in the Manila Bay Area by 2021, as demand from offshore gaming companies prompts developers to launch more projects.
Office supply in the Bay Area alone will increase to 930,000 square meters in the next three years, up from just 400,900 square meters by the end of last year. Some of these offices will be located in mixed-use developments, which are popular among foreign workers.
Many Chinese companies have applied for Philippine Online Gambling Operating (POGOs) licenses that also led them to find office space in the country.
This trend caused prices to increase in nearby cities, whether for residential or commercial properties. The lack of supply in Makati and Fort Bonifacio serves as another factor for the rising property values.
For instance, vacancies in the Makati central business district is currently at 2%, according to Andrew Gomez, Colliers Philippines Director for Landlord Representation. However, the city remains popular among employees of Chinese POGOs since it’s close to major establishments.
The Philippines has long been an investment destination for online gaming companies, but the trend became more noticeable with the influx of Chinese players. China outlawed gambling, and this prompted companies to find other legal ways to keep their business afloat, which include operating outside of the country.
Industry insiders estimated that there are up to 250,000 workers in the POGO sector. Most of these companies employ Chinese nationals, and these businesses are ready to pay for their employees’ accommodation.
Demand for offices will continue to increase in Metro Manila. If your business needs to expand or find a new place, consider a mixed-use development with a host of amenities for business and leisure to make the most out of living in the city.