On February 27, 2025, the Filipina CEO Circle held its General Membership Meeting (GMM) at the picturesque Mt. Fuji in the Manila Polo Club. The event, which featured a delightful Japanese theme, welcomed David Leechiu, a notable expert in the real estate industry and the CEO and Co-Founder of Leechiu Property Consultants. Leechiu provided valuable insights into the Philippines’ economic growth trajectory, highlighting key sectors driving expansion.
Key Sectors Fueling Economic Growth
Leechiu emphasized several major industries contributing to the country’s economic development. The Information Technology and Business Process Management (IT-BPM) sector has been a consistent driver of growth since the early 2000s. Additionally, remittances from Overseas Filipino Workers (OFWs) remain a crucial source of foreign exchange and economic stability. The tourism sector is also experiencing a strong post-pandemic rebound, supported by increased infrastructure development under the “Build, Build, Build” and “Build, Build, More” programs, which have made the Philippines more connected and attractive to foreign visitors.
Trends in the Real Estate Sector
The real estate market is seeing steady growth despite ongoing challenges. Office leasing demand has increased by 4% year-to-date compared to 2024. Government sector demand for office space is at its highest level in seven years. The IT-BPM sector, particularly third-party BPOs in provincial areas, is shifting towards more on-site work, with hybrid work arrangements becoming increasingly common.
Makati remains the prime location for office space, while significant availability is noted in Ortigas, Manila Bay (MOA area), and Alabang. Notably, there was no Philippine Offshore Gaming Operator (POGO) take-up in the second half of 2024.
Capital Markets and Economic Outlook
In the capital markets, the Bangko Sentral ng Pilipinas (BSP) is expected to continue reducing interest rates, making borrowing more affordable and boosting property investments. Inflation has risen slightly to 2.5% from 2.3% but remains within the BSP’s target range. Office space demand and property values show varied trends across Metro Manila, with Cebu Business Park and Filinvest City experiencing growth, while the Bay Area has seen a decline.
Tourism Sector and Hospitality Expansion
The tourism sector continues to grow but has yet to reach pre-pandemic levels. South Koreans account for 26.3% of all tourists, with 1.56 million visitors, while Chinese tourist numbers have significantly declined compared to 2019. The hospitality sector is expanding, with 18 hotels set to open in Luzon, 15 in Visayas, and one in Mindanao this year. Metro Manila and Central Visayas lead the way, with seven and six new projects, respectively, slated for 2025.
David Leechiu’s comprehensive overview underscored the dynamic growth and opportunities within the Philippines, driven by strong sectors and strategic developments.
Stay Ahead in the Evolving Economy
As the Philippine economy continues to grow, staying informed and adaptable is key to success. John Clements Consultants provides expert talent solutions to help businesses and professionals navigate emerging opportunities in IT-BPM, real estate, and more.
Contact us today and learn how to stay competitive in this dynamic landscape.
