Connect with us

Hi, what are you looking for?

News

Property sector to face headwinds in 2023 — JLL

BW FILE PHOTO

THE property sector may face headwinds brought by structural changes and macroeconomic challenges this year, according to JLL Philippines.

“We may see rougher currents [in 2023] due to persisting structural changes and macro-economic headwinds that are weighing down on market activities,” JLL Philippines Research Manager Karisse N. Garcia said.

In the last quarter of 2022, JLL saw leasing and sale activities slow down, while rents and prices declined.

“Despite this, we believe that fundamental market drivers would serve as ‘floaters’ for the industry through 2023,” Ms. Garcia said.

One of the drivers seen by the property consultant is the business process outsourcing (BPO) industry, which provides the majority of the demand for office spaces.

“[These drivers] would include the sustained growth of the BPO sector, which is anticipated to accelerate further in terms of both revenue and manpower, coming from the roadmap and forecasts from IBPAP (IT and Business Process Association of the Philippines),” Ms. Garcia said.

The further return to normalcy is said to improve the return-to-office rates, said Ms. Garcia, as the looser restrictions will encourage foot traffic in public places.

“Lastly, the outstanding rebound of the tourism sector may buoy the performance primarily of the hospitality and retail sectors,” she added.

Meanwhile, JLL expects return-to-office rates to move with an upward bias this year but not by a significant amount as some workforce are already back in the workplace.

“Filipinos are already learning how to live with [the] pandemic and this is encouraging more of the population to return back to public places, pulling up not only return-to-office rates but also retail foot traffic, among others,” Ms. Garcia said.

She noted, however, that the level of return-to-office rates across different business types and operations would not be uniform and would continue to vary.

“There would be some businesses [that] would opt to do full remote work, full on-site work, and hybrid work, depending on what work arrangement would be best fit for their type of operation,” Ms. Garcia added. — Justine Irish D. Tabile

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Editor’s Pick

<?xml encoding=”utf-8″ ??> Pressure on the Tory Party chairman increases as the head of HMRC says there are no penalties for ‘innocent errors’. Nadhim...

Editor’s Pick

<?xml encoding=”utf-8″ ??> With the increased threat of industrial strike action looming across the UK, we consider whether a force majeure clause can strike...

Editor’s Pick

<?xml encoding=”utf-8″ ??> TSB’s 5,700 staff and executives are to share a 10% bigger bonus pot this year, after rising interest rates pushed the...

Editor’s Pick

<?xml encoding=”utf-8″ ??> NatWest is to shut another 23 branches in England and Wales, adding to a raft of high street banking closures already...

Editor’s Pick

<?xml encoding=”utf-8″ ??> Shell has put more than 2,000 jobs in the UK at risk after launching a “strategic review” of its domestic energy...

Editor’s Pick

<?xml encoding=”utf-8″ ??> British taxpayers have become shareholders in a further 53 companies backed by a government rescue funding scheme. These firms include a...

You May Also Like

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.