July 31, 2026
Sheila Lobien: BPOs overtake OFW remittances as biggest growth engine, drive property demand
The Philippine outsourcing industry has overtaken overseas Filipino workers' (OFW) remittances as the country's largest foreign exchange-earning sector, a shift that is now reshaping the property market and redirecting billions of pesos in investments, according to Sheila Lobien, CEO of Lobien Realty Group.
Speaking on ANC's Business Outlook, Lobien said the IT-BPM industry generated about $40 billion in revenues last year, surpassing the roughly $39 billion in cash remittances sent home by OFWs, with the sector targeting $48 billion within two years. For the property sector, that growth is translating directly into office demand — Lobien noted 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 with hybrid work arrangements still in place. That demand has helped keep Metro Manila's office market resilient, with average rents climbing back to around P1,000 per square meter despite vacancy at around 19 percent.
On the residential side, Lobien observed that developers are increasingly redirecting investments toward house-and-lot communities as more Filipino buyers prioritize larger homes, private outdoor space, and long-term land ownership over condo living. She pointed out that residential land in many emerging provincial growth areas can cost about 60 percent less than comparable Metro Manila properties.
Lobien also spoke on the evolving role of Philippine malls, which she says are becoming the country's new "third spaces" — hubs where people work, exercise, socialize, dine, attend church, and access healthcare, not just shop. She noted rising demand from wellness-oriented tenants such as Pilates studios, gyms, and clinics.
On growth corridors, Lobien said capital is increasingly flowing to provincial markets as new expressway and transport infrastructure in North and South Luzon opens up previously distant locations to both businesses and homeowners, with mixed-use "live, work, play" townships becoming the preferred development model.
She flagged industrial real estate, particularly warehousing, as the property sector's brightest spot, with strong logistics demand pushing developers to expand into Pampanga, Bulacan, Tarlac, Cavite, and Laguna. Despite global uncertainty and elevated borrowing costs, Lobien believes Philippine real estate remains one of the country's strongest-performing investment sectors, citing long-term property appreciation of roughly 7 to 8 percent annually — with some provincial house-and-lot markets already posting double-digit gains.
Read the full article here:
https://www.abs-cbn.com/news/business/2026/7/9/bpos-overtake-remittances-as-biggest-growth-engine-drive-property-demand-lobien-1306
Balance Greater Metro Area (GMA) continues to have the highest loan share in the residential market, while Southern and Central Luzon maintain their leadership when it comes to the industrial market, specifically the warehouse market. Lobien Realty Group (LRG) presented these trends during its mid-year media briefing on July 9.
Property developers in the Philippine office market have become more strategic during the first half of 2026, with many choosing to prioritize addressing their current vacancies before embarking on new projects. IT-BPM companies, still the market's main driver, are eyeing cities beyond Cebu, Davao, and Pampanga as they consider expansion outside Metro Manila, while the flexible workspace sector continues to grow amid more hybrid and remote work arrangements.
Despite the uncertainties brought by the Middle East oil crisis, the real estate market continues to achieve positive developments, according to the latest report by Lobien Realty Group. "Real estate as a sector grew 6.8 percent year-on-year in the first quarter despite the headwinds—that's one of the clearest signs that demand fundamentals remain intact," said Sheila Lobien, CEO of Lobien Realty Group.
Halfway through 2026, the Philippine real estate sector is still proving to be resilient despite economic shocks from the Middle East crisis, as well as uncertainties from recent tumultuous movements in the Senate. According to Sheila Lobien, Founder and CEO of Lobien Realty Group (LRG), real estate as a sector grew 6.8 percent year-on-year in the first quarter, calling it one of the clearest signs that demand fundamentals remain intact.
Lobien Realty Group is the No. 1 Realty Property Provider in the Philippines. We provide office and commercial spaces, lots and properties for sale/lease in the cities of Makati, Taguig, Pasig, Mandaluyong, San Juan, Pasay, Parañaque, Las Piñas, Quezon, and Caloocan.