PRIME Philippines: Office Market Third Strongest Globally

PRIME PHILIPPINES successfully held its 2024 Mid-Year Property Market Outlook on August 29, 2024, themed “Transforming Global Shifts to Local Advantages.” The event featured insights from industry experts including Ms. Ruth Coyoca, Mr. Cholo Florencio, Mr. Romel Dellosa, and Ms. Celeste Ilagan.

Mr. Cholo Florencio highlighted that the Philippines has emerged as the third strongest office market globally, with an impressive 80% overall occupancy rate. This places it just behind Singapore at 88% and India at 85%. The global average office occupancy rate is 70%, with the Philippines outpacing regions like the United States (62%) and Europe (60%).

This robust performance is driven by the 7-8% annual growth of the Business Process Outsourcing (BPO) industry and strong demand from government agencies. Additionally, the burgeoning flexible workspace sector, projected to expand at a Compound Annual Growth Rate (CAGR) of 15% globally until 2030, plays a significant role. The Philippines is at the forefront of this trend, attracting BPO companies, MSMEs, private companies, and freelancers. Flexible workspaces offer the advantage of zero Capital Expenditure (CAPEX) and short-term leases.

Overall, the Philippines’ office market is thriving, reflecting positive trends in the real estate sector and positioning the country as a key player in the global market. (PR)