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POGO areas in the Philippines experienced dramatic property market shifts following the government's 2024-2025 ban on offshore gaming operators.
Former POGO hotspots like Bay Area in Pasay, parts of Makati, and ParaƱaque now face elevated vacancy rates and declining property values, making them risky investments for buyers. Property prices in main POGO hubs could drop 10-20% from their inflated peaks as the market adjusts to the massive loss of demand from Chinese gaming workers and companies.
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POGO areas in the Philippines face significant property market challenges after the government banned offshore gaming operations in 2024-2025.
Vacancy rates in former POGO zones have spiked to over 20%, while rental yields dropped from 6-8% to 5-6% annually.
| Property Metric | POGO Peak (2022-2023) | Post-Ban (2025) |
|---|---|---|
| Office Vacancy Rate | Under 5% | Over 20% |
| Rental Yield | 6-8% annually | 5-6% annually |
| POGO Employees | Nearly 300,000 | 48,883 |
| Active POGO Firms | Nearly 300 | 54 |
| Office Space Occupied | 1.3 million sqm | 275,000 sqm |
| Crime Incidents | Higher than average | Improving |
| Property Value Risk | Inflated prices | 10-20% potential decline |
How many POGO offices and workers are currently in the Philippines, and where are they concentrated?
As of September 2025, only 54 POGO firms remain authorized to operate in the Philippines, a dramatic decline from nearly 300 companies at the industry's peak.
The workforce has shrunk equally dramatically to approximately 48,883 POGO workers as of Q3 2024, with local Filipinos making up about 58% of this workforce. During the boom years, the industry employed nearly 300,000 people across the country.
Metro Manila continues to serve as the primary hub for remaining POGO operations, though significant clusters also existed in Clark and Cavite before the government crackdown. The gaming operators now occupy only about 275,000 square meters of Metro Manila office space, down from 1.3 million square meters they once leased at their peak.
Most POGO offices and workers have already left the Philippines or are in the process of departing following the government ban implemented in 2024-2025.
How do property prices and rents in former POGO areas compare to similar neighborhoods?
Former POGO hotspots like Bay Area in Pasay, parts of Makati, and ParaƱaque experienced significantly higher office and residential rents during the gaming industry's growth years compared to similar neighborhoods without POGO presence.
As of 2025, these same POGO-heavy districts are experiencing higher vacancy rates and downward pressure on both pricing and rental rates compared to similar neighborhoods that never had significant POGO presence. The rent premium that POGO areas once commanded has largely disappeared as demand collapsed.
The rental rate differences between POGO and non-POGO areas have narrowed considerably following the government ban, with some former POGO zones now offering below-market rates to attract new tenants.
Property owners in former POGO areas are finding it increasingly difficult to maintain the inflated rental rates they achieved during the gaming boom, leading to significant downward adjustments in pricing.
What percentage of condo buyers and renters in POGO areas were linked to the gaming industry?
During the POGO boom period, up to 60-70% of condominium buyers or renters in some Bay Area and Makati projects were directly associated with POGO operations.
These buyers and renters included direct POGO employees, sublessors working with gaming companies, and businesses providing services to the POGO industry. The concentration was particularly high in newer residential developments near major POGO office clusters.
By 2025, these percentages have fallen sharply due to the industry's contraction and mass exodus of gaming workers from the Philippines. Many condominiums that were previously dominated by POGO-related tenants now struggle to find replacement occupants.
The sudden departure of this tenant base has left many property owners with significant vacancy challenges and forced rent reductions to attract non-POGO tenants.
How has office space demand in POGO zones changed over the past three years?
Office demand in former POGO zones has collapsed dramatically following the government's crackdown and subsequent ban on gaming operations.
Metro Manila's office vacancy reached a record 966,700 square meters in Q1 2025, representing the highest level in over two decades, coinciding directly with the POGO phase-out. The main "POGO zones" in Makati, Bay Area, and Quezon City experienced the sharpest increases in vacancy rates.
However, new demand from IT-BPM companies, healthcare firms, and banking institutions is beginning to offset some of the losses left by departing gaming operators. This transition is gradual and has not yet fully compensated for the massive space that POGOs once occupied.
Property developers and landlords in former POGO zones are actively repositioning their buildings and offering competitive lease terms to attract these alternative industries.
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What are the rental yields in former POGO areas compared to non-POGO districts?
Rental yields in former POGO areas have declined significantly from their peak levels during the gaming boom period.
At the height of POGO operations, rental yields in Bay Area, Makati, and similar POGO-heavy locations reached 6-8% annually, well above the Manila average. These elevated yields were driven by strong demand from well-paid gaming industry workers and companies willing to pay premium rates.
As of 2025, average rental yields in these same areas have dropped to 5-6% annually, now comparable to or slightly below traditional business districts that never had significant POGO presence. Some properties in former POGO zones are experiencing even lower yields due to extended vacancy periods.
Non-POGO districts have maintained more stable rental yields throughout this period, as they were not artificially inflated by gaming industry demand and did not experience the subsequent crash.
How have vacancy rates changed in main POGO districts since 2019?
| District | 2019 Vacancy Rate | 2025 Vacancy Rate |
|---|---|---|
| Bay Area (Pasay) | Under 3% | Over 25% |
| Makati POGO zones | Under 4% | Over 20% |
| ParaƱaque POGO areas | Under 5% | Over 22% |
| Quezon City clusters | Under 6% | Over 18% |
| Non-POGO Makati areas | 8-10% | 12-15% |
| BGC (limited POGO) | 7-9% | 10-13% |
| Ortigas (minimal POGO) | 9-11% | 11-14% |
What are the security and crime statistics in former POGO areas?
POGO-dense areas reported significantly higher crime incidents compared to traditional office districts during the gaming industry's peak years in the Philippines.
Police authorities documented increased incidents of illegal gambling, scam operations, human trafficking, and violent crimes in areas with heavy POGO concentration. The unique security challenges posed by the gaming industry created additional law enforcement burdens for local communities.
Authorities and residents have noted measurable improvement in crime statistics following the mass exodus and government crackdown on POGOs in 2024-2025. The departure of gaming operations has reduced many of the criminal activities that were associated with the industry.
Local police reports indicate that former POGO areas are gradually returning to crime levels more typical of standard business districts as the gaming industry presence diminishes.
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How do local residents view living near former POGO hubs?
Local residents in former POGO hubs expressed significant concerns during the gaming industry's peak years about safety, rapidly rising rental costs, traffic congestion, and dramatic lifestyle changes in their neighborhoods.
Many long-term residents complained about being priced out of their own communities as POGO-driven demand inflated housing costs beyond what local families could afford. The influx of gaming workers also changed the character and culture of established neighborhoods.
Community perceptions have shifted somewhat positively following the POGO exodus, as residents anticipate fewer security issues and hope for normalized property markets. However, the economic disruption caused by the sudden departure has also created new challenges.
Some residents worry about the long-term economic impact on their communities as businesses that depended on POGO workers struggle to survive, while others welcome the return to a more stable, locally-oriented neighborhood environment.
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What government regulations affect POGO areas and property demand?
The Anti-POGO Act of 2025 institutionalized the complete ban on Philippine Offshore Gaming Operators, requiring all firms to cease operations entirely.
This legislation severely limits future demand for office and residential properties that were previously dependent on the gaming industry. The ban is comprehensive and appears to be permanent, eliminating any possibility of a POGO revival in the Philippines.
Property demand in affected zones is likely to remain soft in the near-term as the market adjusts to this regulatory reality. New industries are beginning to fill some of the void left by gaming operators, but the transition is gradual.
The government has also implemented stricter visa and immigration controls that make it difficult for any gaming-related businesses to establish operations in the Philippines, further reinforcing the permanent nature of the POGO ban.
How do banks and developers assess lending risks for properties in former POGO areas?
Banks and property developers now consider lending risks significantly elevated for assets in former POGO-heavy areas due to uncertain demand, elevated vacancy rates, and the impact of regulatory changes.
Financial institutions are often tightening credit requirements or imposing higher down payment requirements for properties in areas that were heavily dependent on POGO demand. The sudden loss of a major tenant base has made these properties less attractive as collateral.
Lending criteria have eased in non-POGO districts where demand remains stable and was not artificially inflated by gaming industry presence. Banks view these areas as lower risk for property investment loans.
Property developers are reassessing their strategies for buildings and projects in former POGO zones, often requiring additional financial guarantees or higher equity requirements from buyers due to market uncertainty.
What is the long-term outlook for POGO operations in the Philippines?
Long-term POGO operations in the Philippines appear completely untenable given the combination of political opposition, public sentiment, and codified legal bans.
The Anti-POGO Act of 2025 represents a decisive and permanent shift in government policy, with strong public support for the ban. Political and economic pressures from international partners have also reinforced the government's commitment to eliminating the gaming industry.
Most gaming operators and their related service providers are expected to leave the Philippines market entirely, with many already relocated to other jurisdictions or ceased operations altogether. The exodus appears to be permanent rather than temporary.
Property sectors that were most exposed to POGO demand must adapt by attracting new industries or repurposing their spaces for different uses, as there is no realistic prospect of gaming operators returning to the Philippines.
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How much could property values decline if POGOs completely shut down?
Property analysts estimate that real estate prices in main POGO hubs, especially Bay Area in Pasay, could decline by 10-20% from their gaming industry-inflated peak values.
Rental rates are expected to soften significantly as the surplus supply of formerly POGO-occupied space struggles to find new tenants at previous price levels. Some buildings may experience even sharper declines depending on their age, condition, and ability to attract alternative tenants.
The impact will vary considerably by property type and location, with older or less competitive buildings likely facing sharper value losses. Newer, well-located projects may fare better if they successfully pivot to serve other industries like IT-BPM, healthcare, or traditional businesses.
Recovery timelines are uncertain and will largely depend on how quickly alternative demand sources can absorb the space previously occupied by gaming operators and their employees.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
POGO areas in the Philippines present significant risks for property investors following the government's comprehensive ban on offshore gaming operations.
The dramatic collapse in demand from gaming industry workers and companies has created a challenging environment with elevated vacancy rates, declining rental yields, and potential property value losses of 10-20% in the most affected areas.
Sources
- Philippine Offshore Gaming Operator - Wikipedia
- Offshore Gaming Exit Reshapes Metro Manila Office Market - InsiderPH
- Metro Manila Office Vacancy Seen Below 20% by Year-end - BusinessWorld
- One Year After Ban, POGO's Shadow Still Looms - Philippine Daily Inquirer
- PAOCC: 9,000 Ex-POGO Workers Scattered in Philippines - Philippine Star
- Philippine Senate Passes Anti-POGO Act of 2025 - AgBrief
- POGO Phase-out Opens Opportunities for Other Industries - Philippine News Agency
- More than 11,000 Foreign POGO Workers Still in Philippines - ABS-CBN News