IT-BPM drives PH office mart

The Philippine office market is seen to grow by 16 percent to achieve a net take-up of 490,000 square meters by the end of 2025 and is off to a good start in the first quarter of the year.

- By JAMES A. LOYOLA

In a media briefing, Leechiu Property Consultants’ Director for Commercial Leasing Mikko Barranda said this growth will be fueled by strong leasing activity, particularly from the IT-BPM sector, and a continued slowdown in space contractions.

Contractions are largely due to the tapering of Philippine Offshore Gaming Operator (POGO) exits that had previously dampened market performance.

For the first quarter of 2025, the office market posted a seven percent increase in year-on-year demand of 355,000 square meters, largely driven by the IT-Business Process Management (IT-BPM) sector, predominantly from Global In-House Centers (GICs).

Barranda said the IT-BPM sector is expanding as it continues to view the Philippines as a strategic outsourcing destination. Notable sub-sectors include companies that are in the healthcare and financial industries.