The Philippines ’ real estate sector is energized over upcoming vacancies coming from the Philippine Offshore Gambling Operators. 17% of office space will go vacant in the Philippines. Sure, many of them may be charged with rent, but many may not be able to pay actually. And what will the landlords do? Find another client? They can’t because there are none as big as casinos (if the casino is renting or leasing the place that is). Many POGOs will shut down and seek more comfortable places in other countries.
The reason for this is the increased cost of taxes. China is taking a very aggressive approach to shut down the whole gambling industry. The government is using education, political pressure, and legal crackdowns to prevent the movement of yuans to the Philippines. After POGO’s shutting down, there will be at least 2k Filipinos who lost their jobs. Philippines Amusement and Gaming Corporation are looking for new places.
The regulator is starting to consider domestic online gambling offerings. According to experts from casinocrunch.com though, not all is lost for these POGOs. Some of them have exclusive access to the country’s digital gambling sector and can shore up profit losses through online offers. But it’s not even near the amount they would make on-site.
Like many nations in the world, the Covid-19 crisis has impacted the economy of the Philippines too. Private investment growth was declined even in August and the office spaces were emptying rapidly. The average office rental rate in the country is much lower than anywhere in Asia. Investments during the coronavirus are getting lesser and lesser but the government is still trying to fight the gambling scene and not puberty.
Pandemic is changing the offices
During the major economic crisis in the world, office spaces are changing. Countries are trying to keep the places busy but restrictions are affecting the offices. The second wave of the pandemic is here and people are already getting ready to get back to their homes. Offices are emptying once more and some of the countries are even encouraging that. In the Philippines, there is no POGO anymore, so there are huge places that have to be adopted by other companies.
But who will start the business during the economic crisis? Investments are getting fewer and the country’s economy is getting worse. As many nations are continuously making their ways toward helping people, some countries are still having different priorities. With so much uncertainty it is hard to think when the offices will be full and busy again. Time is passing and no one is giving the answers to main questions like how everything will be changed after Covid-19 illnesses? Will it be safe for people to go back to the offices and working spaces and work together? Everything is changing its shapes and everyone is confused. People don’t want to invest in capital places.
These huge office buildings with bright rooms are less and less in demand. The Philippine economy is in the biggest-ever fall. The situation in the country is worse than anyone waited for. There is a recession for the first time during the 29 years and everything is worsened by the longest and strictest coronavirus lockdowns. With a record-high unemployment rate, the country won’t be back to normal sooner again.
Conclusion
Office spaces and generally, any spaces that are being rented in the Philippines right now is just impossible to adopt because of social distancing and restrictions. The cases of coronavirus are rising while the economy is sinking. The government is talking about a “new economy” and recovery system which will be starting in 2021.
People are hoping that next year, the government will somehow deal with the economic problems and health issues in the country. Everyone is exhausted by the whole pandemic situation and people’s problems are not ending with that. Millions of individuals are jobless and left with no income. The country will need a couple of years to recover from this situation.
Funny how before Covid-19, the Philippines were one of the fast-growing economies in Asia, but restrictions and health problems caused a major fall down. The people are waiting for help from the government since most of the population is struggling with not only financial problems but also mental health issues.