Offshore gaming firms drive office market growth

Offshore gaming companies have emerged as one of the main drivers of growth in the Philippines’ office market in the first quarter, Business World reports, referencing a report by Pronove Tai.

According to the Makati based property consultancy, offshore gaming firms made up 20 percent of pre-leased office space set to be completed in the second quarter of 2017.

“The offshore gaming industry, a beleaguered office demand driver, requires clear, consistent and reliable national and local government support to succeed in the same way that the IT-BPM (information technology-business process management) industry flourished during the past administrations,” it said.

Pronove Tai said the surge in office demand came after the Philippine Amusement and Gaming Corp.’s (PAGCOR) move to license offshore online gambling.

“With the advent of offshore gaming, all countries generally allow their citizens to engage in betting and gaming activities online in the privacy of their homes. The Philippines, however, has taken the bold lead in legalizing and licensing offshore online gaming in the country,” it said.

The property consultancy noted that gaming companies are attracted to the country because of its competitive labor costs and lower real estate acquisition and operational costs.

While Makati City’s central business district is still the preferred location of offshore gaming firms, Pronove Tai says there has been a shift to the Bay Area, including Parañaque, Pasay, and Manila.

“The local governments of these cities have also been supportive of this industry as compared to other cities in the National Capital Region,” the consultancy said.