The Philippine property market is likely to receive a boost from the loosening of travel restrictions as foreign employees of Philippine offshore gaming operators (POGOs) return to the country. According to Leechiu Property Consultants CEO David Leechiu, the benefits will be gradual as the companies look to reestablish themselves before scaling up activity.
“With travel restrictions easing up, we anticipate POGOs to start reopening their offices and begin to grow by the second quarter of 2022,” Leechiu was quoted as saying by the Philippine News Agency. “Right now, they are in the moat of stability. But when they start expanding again, I think it depends on the rate of expansion, they could easily wipe out all these vacant spaces in the market in the next two years.”
The presence of POGOs will boost both the commercial and residential real estate segments in Metro Manila. Not only do companies in this sector take up large amounts of office space in the city, but the overseas staff require accommodations which stimulates condo rentals and sales.
Related: POGOs, BPOs and the lingo of Philippine real estate
With travel restrictions softening, both the business process outsourcing (BPO) sector and tourism will become key drivers of the property market. The former will benefit as new companies can finally visit the Philippines and set up their operations.
However, it’s the latter which could really elevate the property market. As more new airports and other infrastructure projects are completed, traveling around the country can become easier to navigate which encourages tourists to visit.
“I think tourism will be the biggest industry in the Philippines within 10 years. It will be larger than the BPO sector, it will be larger than the overseas remittances,” Leechiu predicted.
Related: Can tourism-focused real estate help the Philippine property market rebound?