Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank, is the latest to predict a property market recovery in the country. They foresee it taking place in 2022 as part of a larger rebound in overall economic growth.

“The BSP anticipates that activity in the real estate market will recover in line with rebound in overall economic growth in 2022,” BSP Governor Benjamin Diokno was quoted as saying by Philstar Global. “Real estate demand slipped due to the uncertainties brought about by the global health crisis as capital values for office and residential units in the country’s major commercial and business districts slumped in 2020.”

While the past two years have been a struggle, the BSP did note that the real estate and construction sectors are already on the road to recovery having inched upward during the second quarter of this year.

However, more is needed for a complete Philippine property market recovery. A full return to work and tourism resuming are a few of the needed factors.

Softening travel restrictions likely to aid property market recovery

As travel restrictions loosen and foreign employees of Philippine offshore gaming operators (POGOs) return to the country, real estate will likely pick up, according to Leechiu Property Consultants CEO David Leechiu, He noted that 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.”

No firm plans are in place just yet, but a tourism reopening scheme is expected to be announced shortly. It is believed that vaccinated foreign tourists from countries on the Philippines COVID-19 green list would be allowed to enter.

Related: Vaccinated foreign tourists could soon be welcomed back to the Philippines