Geline Salac

BPOs overtake remittances as biggest growth engine; drive property demand — Lobien

Members of the press are given a walking tour of the Ubisoft Philippines state-of-the-art studio, at the their headquarters The Finance Centre, in Bonifacio Global City, (BGC) Taguig City, June 21, 2024. The company boasts a workplace with arcade and gaming areas and studio-wide esports tournament and spacious lounge and pantry that hopes to achieve an environment where creativity and tech meet to solve exciting challenges for its workers. Jonathan Cellona, ABS-CBN News

Article (news)

Raine Musñgi

ABS-CBN News

<h2 id="isPasted" style="line-height:1.15">House-and-lot projects outshine condos as Filipinos chase space</h2><div> </div>The Philippine outsourcing industry has overtaken overseas Filipino workers (OFW) remittances as the country&#x27;s largest foreign exchange-earning sector, a shift that is now reshaping the country&#x27;s property market and redirecting billions of pesos in investments, according to Lobien Realty Group CEO Sheila Lobien.Speaking on ANC&#x27;s Business Outlook, Lobien said the Information Technology and Business Process Management (IT-BPM) industry generated about $40 billion in revenues last year -- surpassing the roughly $39 billion in cash remittances sent home by OFWs.&quot;Last year, the revenue is even bigger than the OFW revenues... the outsourcing industry, they have reached the $40 billion, and the target is... $48 billion in two years&#x27; time,&quot; Lobien said. Industry figures support the trend. The IT and Business Process Association of the Philippines reported the IT-BPM sector generated approximately $40 billion in export revenues in 2025, with employment continuing to expand and long-term targets aimed at sustaining growth despite rapid advances in artificial intelligence.For the property sector, that growth is translating directly into office demand.Lobien said the industry expects to hire around 70,000 additional employees this year, which could create demand for roughly 200,000 square meters of office space, even as hybrid work arrangements remain in place.&quot;Their projection is that this year, they will still hire 70,000 full-time employees... that would translate to easily around 200,000 square meters of office space,&quot; she said. That demand has helped keep Metro Manila&#x27;s office market more resilient than many investors expected.<div><iframe width="640" height="360" src="https://www.youtube.com/embed/MTCXcYa6B-g?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe> </div>Despite vacancy remaining at around 19 percent, average office rents across Metro Manila have climbed back to around P1,000 per square meter, suggesting quality buildings continue to attract tenants.<div>Filipinos choosing land over condos</div>While Metro Manila&#x27;s condominium market continues to wrestle with pockets of oversupply, Lobien said developers have begun redirecting investments toward a segment showing stronger and more consistent demand: house-and-lot communities.&quot;Many developers are moving their projects... to the house-and-lot market, malls and hotels,&quot; she said. She said more Filipino buyers are prioritizing larger homes, private outdoor space and long-term ownership over condominium living.&quot;Many Filipinos up to today, they are looking for their own plot of land,&quot; Lobien said.According to the Bangko Sentral ng Pilipinas&#x27; Residential Real Estate Price Index, residential property prices have continued to rise nationwide in recent years, with stronger appreciation increasingly coming from areas outside Metro Manila as infrastructure improves.Lobien noted that residential land in many emerging provincial growth areas can still cost about 60 percent less than comparable Metro Manila properties.&quot;The cost also is way lower -- 60 percent lower easily,&quot; she said. <div>Malls becoming the country&#x27;s new &#x27;third spaces&#x27;</div>The changing property landscape is also redefining the role of Philippine shopping malls.Rather than serving purely as retail destinations, malls are increasingly functioning as community gathering spaces, or places where people work, exercise, socialize, dine, attend church services and access healthcare.Lobien said demand is growing not only for restaurants but also for wellness-oriented tenants such as fitness studios, beauty clinics and medical facilities.&quot;Many Filipinos are now... very conscious about their well-being... we see a lot of them asking for a Pilates studio, a gym, clinic, beauty clinic,&quot; she said. She added that malls remain culturally unique in the Philippines.&quot;The mall is not just a mall where you buy things... it&#x27;s a place where they go meet with their family... you go to church there... you shop... you eat,&quot; she said. Urban planners increasingly describe these destinations as &quot;third spaces&quot; -- locations outside the home and workplace where communities gather and spend leisure time.Growth corridors moving beyond Metro ManilaDevelopers are also following new infrastructure investments into emerging provincial growth corridors.Lobien said major projects under the government&#x27;s expanding expressway and transport network -- including new links in North and South Luzon -- are making previously distant locations far more attractive to both businesses and homeowners.&quot;Capital is also flowing... to the provincial market,&quot; she said. She added that mixed-use townships allowing residents to &quot;live, work and play&quot; in one location are becoming the preferred development model as companies expand outside Metro Manila.<div>Warehouses remain the property&#x27;s brightest spot</div>Industrial real estate also continues to outperform other asset classes.Lobien said warehouse demand remains exceptionally strong while available supply inside Metro Manila remains limited.&quot;The warehousing market... it&#x27;s the brightest spot... we still see a lot of demand for warehouse logistics facilities within Metro Manila. But then again, the supply is quite limited,&quot; she said.Developers are increasingly expanding logistics facilities into Pampanga, Bulacan, Tarlac, Cavite and Laguna to meet rising e-commerce and supply chain requirements.Property still delivering despite global uncertaintyDespite geopolitical tensions, elevated borrowing costs and lingering uncertainty, Lobien believes Philippine real estate remains among the country&#x27;s strongest-performing investment sectors.She cited average long-term property appreciation of roughly 7 to 8 percent annually, with some provincial house-and-lot markets already posting double-digit gains.&quot;Property prices... are still continuously growing... in some areas... double digit right now, especially for house and lot,&quot; she said. For investors, the biggest opportunities may no longer be found inside Metro Manila&#x27;s traditional business districts, but along the next generation of infrastructure corridors connecting the country&#x27;s fast-growing regional cities.

The Philippine outsourcing industry has overtaken overseas Filipino workers (OFW) remittances as the country's largest foreign exchange-earning sector.

The Philippine outsourcing industry has overtaken overseas Filipino workers (OFW) remittances as the country's largest foreign exchange-earning sector.

BPOs overtake OFW remittances as biggest growth engine, drive property demand — Lobien

News

Entertainment

Lifestyle

Sports

Metro.Style

More

BINI

Sudoku

Word of the Day

Lotto

Horoscope

Business

BPOs overtake OFW remittances as biggest growth engine, drive property demand — Lobien

Raine Musñgi,

ABS-CBN News

Published July 09, 2026 01:06 PM PHT

Read More:

BPO

remittances

dollar earnings

real estate

condos

Lobien

ABS-CBN Newsletter

Your go-to source for the latest news, entertainment highlights, exclusive interviews, and updates on your favorite Kapamilya stars.

ABS-CBN Newsletter

Your go-to source for the latest news, entertainment highlights, exclusive interviews, and updates on your favorite Kapamilya stars.

Sign Up

I have read and agree to the Terms and Privacy Policy.

ABS-CBN is the leading media and entertainment company in the Philippines, offering quality content across TV, radio, digital, and film. Committed to public service and promoting Filipino values, ABS-CBN continues to inspire and connect audiences worldwide.

Corporate

Investors

Governance

International Distribution

Corporate

Governance

Investors

International Distribution

NPC Seal of Registration

Privacy Policy

AI Policy

Terms of Service

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.