By Benjamin Cuaresma
MANILA — The Philippine information technology and business process management (IT-BPM) industry has overtaken overseas Filipino workers (OFW) remittances as the country’s largest source of foreign exchange earnings, fueling demand for office space and reshaping the nation’s real estate market, according to a property industry executive.
Sheila Lobien, chief executive officer of Lobien Realty Group, said the outsourcing sector generated about $40 billion in revenues last year, exceeding the approximately $39 billion in cash remittances sent home by OFWs.
She said the industry’s continued expansion is expected to further strengthen the economy, with revenues projected to reach $48 billion within the next two years.
The sustained growth of the IT-BPM sector is also translating into stronger demand for commercial real estate. Lobien said the industry expects to hire about 70,000 additional employees this year, creating demand for roughly 200,000 square meters of office space despite the continued adoption of hybrid work arrangements.
Although Metro Manila’s office vacancy rate remains at around 19 percent, average rental rates have recovered to about P1,000 per square meter, reflecting continued demand for quality office developments from outsourcing firms.
Beyond office buildings, Lobien said developers are increasingly shifting investments away from high-density condominium projects toward house-and-lot developments, responding to changing homebuyer preferences.
She noted that more Filipinos now prefer owning residential land and larger homes that offer more living space, privacy, and long-term value.
Residential growth is likewise expanding beyond Metro Manila as improved transport infrastructure opens new investment opportunities in provincial growth centers, where land prices remain significantly lower than in the capital.
Lobien estimated that residential land in many emerging provincial markets is about 60 percent cheaper than comparable properties in Metro Manila, encouraging developers and homebuyers to explore areas connected by new expressways and transport networks.
She also observed that Philippine shopping malls are evolving beyond traditional retail centers into community hubs that combine dining, wellness, healthcare, recreation, and religious services, reflecting changing consumer lifestyles.
Meanwhile, industrial properties continue to outperform other real estate segments, with warehouse and logistics facilities posting the strongest demand amid the continued expansion of e-commerce and supply chain operations.
With limited warehouse space available in Metro Manila, developers are increasingly expanding logistics facilities into Pampanga, Bulacan, Tarlac, Cavite, and Laguna.
Despite global economic uncertainties, Lobien said Philippine real estate remains one of the country’s strongest investment sectors, citing long-term property appreciation averaging 7 to 8 percent annually, with some provincial house-and-lot markets already recording double-digit growth.
She added that future investment opportunities are expected to be concentrated along emerging regional growth corridors supported by major government infrastructure projects, as businesses and residential developments continue to expand beyond Metro Manila.
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