Demand for office space in the Philippines rose by 7% year-on-year in the first quarter of 2025, defying concerns over the mandated departure of Philippine Offshore Gaming Operators (POGOs), real estate consultancy Leechiu Property Consultants (LPC).
Net office space take-up reached 355,000 square meters, fueled primarily by the robust expansion of the Information Technology and Business Process Management (IT-BPM) sector, particularly global in-house centers.
Despite the government’s push to remove POGOs, which previously occupied a significant portion of office stock, the resilient IT-BPM industry is absorbing available space.
LPC noted increasing activity from traditional office tenants as well, contributing to the positive momentum. Consequently, the nationwide office vacancy rate saw a slight improvement to 17% in the first three months of the year.
LPC projects a further strengthening of the office market, forecasting a 16% increase in net office space take-up to 490,000 square meters by the end of 2025.
The consultancy emphasized the Philippines’ attractiveness as an outsourcing destination, with the IT-BPM sector viewing the country as a strategic location for expansion.
This sustained demand is expected to cushion the impact of the POGO exodus and drive continued growth in the office property market throughout the year.
Property News Philippines
