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Yes, the analysis of Cebu's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Lahug? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other barangays where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Cebu Property Pack.
Will property prices increase in Cebu in 2025?
Yes, property prices in Cebu are expected to rise in 2025, driven by a combination of economic growth and increased demand for real estate.
Backed by our fresh, in-depth market analysis, we’re confident that Cebu remains a promising location for both local and international investors.
While there are challenges such as inflation and potential interest rate hikes, the primary factors driving Cebu’s property market growth are likely to persist.
The demand for residential and commercial spaces continues to outpace supply, making significant price drops unlikely. Additionally, Cebu's strategic location and economic development initiatives continue to attract buyers and investors.
Signals pointing to a property price increase in Cebu
Here are some factors suggesting prices could increase:
Cebu's ongoing infrastructure projects, such as the Metro Cebu Expressway and the Cebu-Cordova Link Expressway, are expected to enhance connectivity and accessibility, making properties in these areas more attractive and potentially increasing their value.
The growth of Cebu's IT and BPO sectors continues to drive demand for office spaces and residential properties, as more professionals move to the city for employment opportunities.
Cebu's tourism industry is projected to recover and expand further in 2025, boosting demand for hospitality-related real estate and increasing property values in tourist hotspots.
The local government's initiatives to promote sustainable urban development and smart city projects are likely to enhance the livability and attractiveness of Cebu, driving up property demand and prices.
Cebu's strategic location as a central hub in the Philippines makes it a preferred choice for businesses and investors, contributing to a steady demand for commercial and residential properties.
The increasing trend of urban migration to Cebu is expected to continue, as people seek better job opportunities and quality of life, further driving demand for housing.
Signals pointing to a property price decrease in Cebu
Here are some factors suggesting prices could fall:
Potential increases in interest rates could make financing more expensive, potentially reducing the purchasing power of some buyers and slowing down demand.
Economic uncertainties, such as inflation and global market fluctuations, could impact consumer confidence and spending power, potentially affecting the real estate market.
If the supply of new residential and commercial developments significantly outpaces demand, it could lead to a temporary oversupply, putting downward pressure on prices.
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If property prices go up in Cebu, how much would they increase by?
If real estate prices in Cebu were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in growing markets like Cebu appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as location, economic conditions, and property type.
It means that, if you spot a charming 2-bedroom condo in IT Park for 5,000,000 PHP today, don't be surprised if it's priced between 5,150,000 and 5,350,000 PHP this time next year.
To give you a better understanding, here is a table that shows 7 types of Cebu real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (PHP) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Condominium (60 sqm / 646 sqft) | 5,000,000 | 5,150,000 | 5,250,000 | 5,350,000 |
| Modern House (100 sqm / 1,076 sqft) | 8,000,000 | 8,240,000 | 8,400,000 | 8,560,000 |
| Luxury Villa (200 sqm / 2,153 sqft) | 20,000,000 | 20,600,000 | 21,000,000 | 21,400,000 |
| Studio Apartment (30 sqm / 323 sqft) | 2,500,000 | 2,575,000 | 2,625,000 | 2,675,000 |
| Loft (80 sqm / 861 sqft) | 6,000,000 | 6,180,000 | 6,300,000 | 6,420,000 |
| Townhouse (150 sqm / 1,615 sqft) | 12,000,000 | 12,360,000 | 12,600,000 | 12,840,000 |
| Investment Property (50 sqm / 538 sqft) | 4,000,000 | 4,120,000 | 4,200,000 | 4,280,000 |
Everything you need to know is included in our Property Pack for Cebu
If real estate prices go up in Cebu, which areas are likely to see the biggest increases?
Today, people who want to move to Cebu want the charm, but they also want modern conveniences and vibrant social scenes, which IT Park delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Banilad has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Cebu market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| IT Park | High | Recent development of luxury condominiums and its increasing appeal to international tech companies, driving demand. |
| Banilad | High | Expected rise due to limited housing stock, upcoming commercial developments, and growing demand for prime properties in central Cebu. |
| Mandaue City | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Cebu Business Park | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Talamban | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Lahug | Medium | Investment in local infrastructure, such as the extension of road networks and renovation of historic areas, is boosting long-term value. |
| Guadalupe | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Mactan Island | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Talisay City | Medium-High | Its proximity to Cebu City, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Minglanilla | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Busay | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Fuente Osmeña | High | Upcoming restoration of historic landmarks and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Cebu
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Cebu?
In 2025, Cebu real estate trends focus on tech-smart, energy-efficient condominiums, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Condominiums:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Homes in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Cebu City are seeing increased interest. Proximity to beaches, green spaces, and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In bustling areas like Cebu City, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Cebu's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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