GLOBAL real estate service company Colliers believes that Iloilo will continue to be a viable outsourcing hub outside Metro Manila given its competitiveness and talent availability.
Research associate director Joey Bondoc noted that from 2020 to 2021, Colliers recorded about 92,700 square meters of office space deals in Iloilo, but none since the first half of 2022 due to limited supply.
“We recommend that developers further examine the viability of building more office towers in Iloilo to capture pent-up demand, especially from outsourcing locators as tenants continue to express interest to locate in the city,” Bondoc said. “Moreover, the additional fiscal incentives in provincial areas under the Corporate Recovery and Tax Incentives for Enterprises Law will also urge locators to expand their operations outside the capital region.”
This comes as outsourcing company Telus International Philippines said they opened a new site in Pavia, Iloilo, which is their eighth site in the country and second in the province. Their first office is currently located in SM Strata Tower in Iloilo City. Rajiv Dhand, Telus International Asia-pacific regional vice president, cited that their continued investment in Iloilo shows their “long-term commitment to the people and communities in the province.”
With the rise of the business process outsourcing sector, there are employees looking for other properties, especially condominiums with amenities, preferably near their offices.
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Colliers also suggests that developers further diversify their projects and assess the reception of Metro Manila’s residential market for higher-priced units.
Bondoc pointed out that in the first half of 2022, the luxury segment (properties priced P8 million and above) accounted for 26 percent of total pre-selling condominium take-up in Metro Manila, an increase from 3.6 percent in the first half of 2021.
“We encourage developers to highlight amenities such as open spaces and activity areas in their projects, as well as explore securing green building certifications. We believe that adopting green and sustainable features will play a crucial role in future-proofing residential projects post Covid-19,” Bondoc explained.
An example of this would be Filinvest’s luxury real estate developer Filigree’s Two Botanika, the second tower of its residential development, Botanika Residences in Filinvest City, Alabang. This property was launched on Aug. 18, 2022.
The condominium will offer one- to four-bedroom units with sizes ranging from 72 to 322 square meters priced between P22 million ($400,000) and P100 million ($1.8 million). Amenities of the project include a sky lounge, a fitness center and al fresco spaces. All units of the project will have a veranda.
The developer is also expecting to secure a Building for Ecologically Responsive Design Excellence certification for Two Botanika as they target to complete the project by 2027.