London-based Timetric’s Construction Intelligence Center (CIC) reported last year that the country’s residential market is expected to remain the largest in the construction industry, accounting for about 33.9 percent of the industry’s total value by 2020.
The growth of the residential market, the report said, is being supported by the expansion of the middle-class population, government efforts to urbanize underprivileged rural areas, and housing projects for low-and middle-income groups.
“This report only inspires us to deliver more. With more and more Filipino families expected to improve their living standards in the coming months and years, the first thing they would consider is to stop renting and invest in their own homes,” said Romarico Alvarez, chair of Laguna-based developer PA Properties.
As one of the leading players catering to low- and middle-income homebuyers, the 22-year-old company has been able to deliver 39 developments, comprising of over 25,000 housing units in several areas of Luzon.
Sustained growth
In a report, the Contact Center Association of the Philippines estimates that global business outsourcing industry will grow by 6 percent every year over the next six years. As one of the world leaders, the Philippines is expected to grow two to three times faster considering it gets the lion’s share of outsourcing deals.
In 2016 alone, the country’s BPO industry was estimated to have earned $25 billion in revenues.
“And as the industry’s expansion outpaces the supply of office spaces in Metro Manila, BPO companies are finding several provinces conducive for their operations. From these locations, companies are finding enough labor to support their small and mid-sized BPO operations. These individuals and families are what we are anticipating—a reason why we have built and are planning to build communities in several of these highly progressive locations,” Alvarez said.
Considering that more BPO companies are increasingly considering setting up operations in the provinces, as available office spaces within Metro Manila continue to shrink, locations like Lipa in Batangas have experienced rapid economic boom.
“Interestingly, this city ranked 6th out of 10 in the Top 10 Next Wave Cities of 2010 by the Commission of Information and Communication Technology (ICCT) thanks to a healthy labor pool and presence of a dependable IT infrastructure. Thankfully, PA Properties now has a 12.8 hectare project called NuVista Lipa, which is expected to deliver 1,011 homes,” he said.
Outsource operations
Alvarez also shared that another factor prompting expansion and outsourcing operations in the Philippines is the ongoing economic slowdown in Europe.
“More and more families are looking for their first homes, but as developments are beginning to fill up all the available slots in the areas of Laguna and Cavite, the company must also look elsewhere—places like San Fernando, Pampanga. Here, we are developing the 33-hectare Bridgepointe Place. Within this city as well as other locations away from Metro Manila, the financial standing of many families are starting to improve significantly. As a forward-thinking residential developer, we must be here to offer these families attractive and reasonably priced housing packages,” believed Alvarez.
He added that as the first home buyer demographic is changing, PA Properties will continue to bring greater choice to cater to the diversity seen in this market.