Real estate developers are poised to tap a larger market of multinational tenants after the government lifted the seven-year moratorium on new Information Technology (IT) Parks and IT Centers in Metro Manila, although they will not receive fresh tax incentives under the policy.
The Department of Finance (DOF) said Administrative Order No. 45 revives the Philippine Economic Zone Authority’s (PEZA) authority to accredit new IT Parks and IT Centers in the capital while preserving the government’s policy of reserving fiscal incentives for businesses that create jobs, exports and innovation.
Finance Secretary Frederick Go said tax perks will remain exclusive to qualified Registered Business Enterprises (RBEs) operating inside PEZA-registered facilities, not the developers that build them.
“While real estate developers are not covered by these incentives, qualified Registered Business Enterprises that locate in PEZA-registered IT Centers and IT Parks in Metro Manila may continue to avail of incentives,” Go said.
The clarification underscores a shift in investment policy, with the government prioritizing incentives for operating companies while allowing developers to benefit through stronger demand for PEZA-accredited office space.
PEZA Director General Tereso Panga said the policy gives property owners a fresh opportunity to reposition office buildings for multinational IT-business process management firms and global capability centers seeking PEZA registration.
“This allows our property developers to reposition qualified office spaces to meet the requirements of global IT-BPM companies,” Panga said. “Developers can bring these projects into the PEZA ecosystem and market them as PEZA-registered locations, while DTI and PEZA will actively promote these spaces to potential locators.”
The market has responded quickly, with five office developments in Makati, Taguig, Parañaque and Muntinlupa already applying for PEZA registration after AO 45 took effect.
PEZA said the move also tackles a growing shortage of investment-ready office space, noting that 44 percent of its accredited inventory in Metro Manila is already aging. By expanding the supply of modern PEZA facilities without extending tax breaks to developers, the government hopes to attract more high-value IT-BPM investments while keeping fiscal incentives tightly targeted.
