MANILA – The Asia Pacific Real Estate Association (APREA) sees the business process outsourcing (BPO) industry continue supporting real estate businesses in the Philippines, its chief executive officer Sigrid Zialcita said.
“(The) BPO sector will remain a pillar of the real estate sector. Having a strong BPO sector will be a catalyst for that industry,” Zialcita said in a virtual media briefing Tuesday.
She said the BPO sector will also back real estate investment trust (REIT) investments in the country, with REITs portfolio mostly in the office market.
She added that the bulk of the tenancy of the office space consists of the BPO sector.
While outlook on REITs is bearish as Metro Manila and nearby provinces are placed under enhanced community quarantine, Zialcita said they expect this phenomenon as temporary and the country could bounce back within a year.
“We are expecting more (REIT licenses) to come in the next six to 12 months,” she said.
Meanwhile, APREA said REITs and infrastructure investments have a crucial role in the economic recovery of the Asia Pacific.
It also cited the Philippine government’s USD180-billion Build, Build, Build program as one of the key infrastructure plans in Southeast Asia, along with Indonesia’s high-speed railway project connecting Jakarta and Bandung.
“The reality is that Asean needs infrastructure development if it wants to sustain its economic growth,” Zialcita said. (PNA)