DEMAND for office spaces grew during the second quarter of the year, its highest since the pandemic struck the country last year as investor's sentiments continue to improve, according to data of Leechiu Property Consultants.

Leechiu data showed office demand reached 169,000 square meters for the second quarter of the year, up 39 percent from the previous quarter's 122,000 square meters and 77,000 square meters in second quarter of 2020.

The company's CEO David Leechiu said office demand is the highest in the second quarter it has been since the start of the pandemic. As of the first half, it is now at 291,000 square meters.

"This is already 75 percent of demand for the entire 2020. There is no doubt that the Philippines is back on the radar of global occupiers," he said.

The figure, however, is still far from the 845,000 square meters of office demand in the first half of 2019.

Leechiu said the business process outsourcing industry accounted for 92,000 or more than half of the demand for the second quarter.

It grew more than double from the first quarter's 35,000 square meters driven by economic stability in the West, he said.

"Even if they were relatively quiet in 2020, BPOs are back," said Leechiu. "The same fundamentals that attracted BPOs to the Philippines during the financial crisis of 2008 are once again working for us," Leechiu said.

Investor sentiment has improved with the rollout of Covid-19 vaccines and the passage of Senate Bill 2232 which clarified tax concerns of Philippine Offshore Gaming Operators.

With the reopening of international borders, POGOs are expected to revive their interest in the Philippine office market and further prime the country's economic recovery, he said.

"All these events have aligned to support the Philippine office market. Its resurgence this quarter is a strong and clear indicator of recovery, the study concluded," Leechiu said.

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