Is it worth it buying property in Cebu in 2025?

Authored by the expert who managed and guided the team behind the Philippines Property Pack

Yes, the analysis of Cebu's property market is included in our pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in the Philippines. If you'd like to learn more about us, you can check our presentation page.

What types of properties can you buy in Cebu?

In Cebu, you can purchase condominiums, houses with lots, standalone land, and commercial properties, each offering distinct advantages for different buyer profiles.

Condominiums are the most accessible option for foreign buyers, with studio units starting from ₱900,000 to ₱1.5 million in Cebu City, while the average price sits around ₱5.3 million at ₱128,000 per square meter. High-end developments like The Alcoves or 1016 Residences command premium prices for luxury units with superior amenities.

Houses and lots come in various forms including townhouses, duplexes, and single-detached homes, with prices ranging from ₱1.03 million for basic townhouses in Carcar to ₱250 million for luxury estates in Maria Luisa Park. While foreigners cannot directly own land in the Philippines, they can own the house structure through long-term leases or corporate arrangements.

Land parcels average ₱16,600 per square meter for residential and agricultural use, though direct ownership remains restricted for foreign nationals who must utilize lease agreements or Philippine corporations with majority Filipino ownership.

The key differences lie in ownership rules, maintenance responsibilities, and investment flexibility - condos offer easier foreign ownership and lower maintenance but come with monthly association dues, while houses provide more privacy and control but require higher upfront costs and present legal complexities for foreign buyers.

Should you buy or rent in Cebu for mid to long-term stays?

Buying property in Cebu makes more financial sense than renting if you're planning to stay for more than 3-5 years, especially given the market's consistent appreciation and strong rental yields.

Property values in Cebu have risen 5-7% annually over the past five years, meaning buyers build equity while renters face increasing costs without ownership benefits. Studio condos in prime areas generate 6-8% annual rental yields, allowing owners to offset costs or generate passive income when not occupying the unit.

Renting offers flexibility and lower initial costs, making it suitable for stays under three years or if you're still exploring different areas of Cebu. Monthly rentals for a studio in the city center range from ₱11,000 to ₱20,000, while 2-bedroom condos cost ₱25,000 to ₱40,000.

With property prices expected to continue rising through 2025 and beyond, buying serves as an inflation hedge while providing the option to generate rental income during vacant periods. The decision ultimately depends on your financial capacity for the 20% down payment and your certainty about staying in Cebu long-term.

It's something we develop in our Philippines property pack.

How have Cebu property prices changed and where are they heading?

Cebu's property market has shown resilient growth over the past five years, with residential values appreciating 5-7% annually despite a brief pandemic-related dip in 2020.

Condominium prices in Cebu City reached ₱157,000 per square meter in 2022, marking a 13-15% increase from 2020-2021 levels as the market quickly rebounded from COVID-19 impacts. The average property now costs ₱5.3 million for condos, though significant variations exist based on location and property type.

Looking ahead to the remainder of 2025 and beyond, experts predict continued price appreciation driven by major infrastructure projects, expanding tourism, and sustained economic growth in the region. Pre-selling condos currently offer 20-30% discounts compared to ready-for-occupancy units, presenting significant upside potential for early investors.

The market shows particularly strong demand for tech-enabled condominiums and family-oriented homes in suburban areas, with prices in these segments expected to outpace the general market growth rate through 2026.

What are the current real estate trends in Cebu?

Cebu's real estate market in 2025 is experiencing robust expansion, with major growth concentrated in Cebu City, Mandaue, and Lapu-Lapu where both residential and commercial developments are transforming the landscape.

Infrastructure projects like the Cebu-Cordova Link Expressway are dramatically improving accessibility and driving property values upward in previously underserved areas. The 8.9-kilometer toll bridge has reduced travel time between Cebu City and Mactan Island from 40 minutes to just 15 minutes, spurring development along both connection points.

Market demand has shifted toward affordable and mid-market condominiums priced between ₱2-5 million, while eco-friendly and mixed-use developments are gaining traction among environmentally conscious buyers. Developers are responding with projects featuring solar panels, rainwater harvesting, and green spaces.

Tourism recovery has fueled demand for both short-term vacation rentals and long-term residential leases, particularly in resort areas of Mactan and beachfront properties. The market is no longer just growing - it's transforming to meet evolving buyer preferences for sustainable, connected, and lifestyle-oriented properties.

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How do foreigners buy property in Cebu step-by-step?

Foreign property buyers in Cebu must navigate specific regulations, but the process is straightforward when working with licensed professionals who understand the legal framework.

1. Engage a Licensed Real Estate Broker: Work exclusively with PRC-licensed agents familiar with Cebu's market and foreign ownership laws. Verify their license number through the Professional Regulation Commission website.
2. Search Properties on Trusted Platforms: Use established sites like Lamudi, Property24, MyProperty, or OnePropertee to browse listings. Schedule viewings for at least 5-10 properties to understand market values.
3. Submit Letter of Intent with Reservation Fee: Once you've chosen a property, submit a formal letter of intent with a reservation fee (typically ₱20,000-₱50,000) to secure the unit while conducting due diligence.
4. Conduct Thorough Due Diligence: Verify the property's clean title at the Registry of Deeds, check for liens or encumbrances, review the developer's track record, and physically inspect the property with a qualified inspector.
5. Sign the Sales Contract: For pre-selling units, sign a Contract to Sell; for completed properties, execute a Deed of Absolute Sale. Have a lawyer review all documents before signing.
6. Complete Payment and Pay Taxes: Pay the required down payment (typically 20%) and arrange financing for the balance. Budget for transfer tax (0.5-0.75%), registration fee (0.25%), and documentary stamp tax (1.5%).
7. Register the Title Transfer: Submit all documents to the Registry of Deeds for official title transfer. This process typically takes 2-3 months to complete.

Remember that foreigners can own condominium units (up to 40% foreign ownership per building) but cannot directly own land. For houses with land, utilize 25-year renewable lease agreements or establish a Philippine corporation with at least 60% Filipino ownership.

Where should you start looking for properties in Cebu?

Finding the right property in Cebu starts with using reputable online platforms and working with established local agencies that have proven track records.

The most trusted online platforms include Lamudi Philippines, Property24, MyProperty, and OnePropertee, which offer comprehensive listings with detailed filters for price, location, and property type. These sites provide market insights, virtual tours, and direct communication with verified agents.

For personalized service, work with established agencies like Cebu Grand Realty, Cebu Real Estate Shop, or Primary Homes Inc., which have strong reputations and provide after-sales support. Notable licensed brokers include those from Cebubai.com, Mark Lester Sanchez, and Andrea Karla Casimiro Wei who specialize in assisting foreign buyers.

Start your search by defining your budget and preferred areas, then browse listings online before scheduling viewings with licensed agents. Always verify an agent's PRC license and ask for references from previous foreign clients to ensure you're working with qualified professionals who understand the specific requirements for international buyers.

What can different budgets buy in Cebu's property market?

Your budget determines not just the size and type of property you can afford in Cebu, but also the location and amenities available to you.

With $50,000, you can secure a studio condominium in developing areas or a basic townhouse in suburban locations, perfect for rental investment or a starter home. The $100,000 range opens up 1-2 bedroom condos in more central locations like Lahug or small houses in family-friendly neighborhoods.

At $200,000 and above, you enter the premium market with 2-3 bedroom condos in prime business districts or mid-range houses with gardens in established subdivisions. Luxury properties in exclusive enclaves like Maria Luisa Park or beachfront estates in Mactan can reach $1 million or more.

It's something we develop in our Philippines property pack.

What mistakes do buyers commonly make in Cebu?

Many property buyers in Cebu lose money or face legal troubles by making preventable errors that proper preparation could avoid.

The most costly mistake is skipping due diligence - failing to verify property titles at the Registry of Deeds, not checking for liens or encumbrances, or neglecting to research the developer's reputation and financial stability. This can lead to buying properties with unclear ownership or from developers who may not complete the project.

Working with unlicensed brokers ranks as the second major pitfall, as these individuals may provide incorrect information about foreign ownership rules or facilitate illegal transactions. Always verify a broker's PRC license and avoid anyone who suggests circumventing foreign ownership restrictions through nominee arrangements.

Buyers often underestimate total costs by focusing only on the purchase price without budgeting for transfer taxes, registration fees, and ongoing expenses like association dues. Understanding that capital gains tax is paid by the seller, not the buyer, prevents overpayment during negotiations.

Never purchase property without physically inspecting it, regardless of how good the photos look or how trustworthy the agent seems. Many buyers also fail to understand that while foreigners can own condos, they cannot directly own land, leading to complicated and potentially illegal ownership structures.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in the Philippines versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What's the cost of living in Cebu if you settle there?

Living costs in Cebu run approximately 13.8% lower than Manila, with housing costs showing even greater savings at 39% less than the capital.

Monthly expenses for a comfortable lifestyle typically range from ₱40,000 to ₱80,000 for singles and ₱60,000 to ₱120,000 for families, depending on your lifestyle choices. Rent for a studio apartment in the city center costs ₱11,000 to ₱20,000 monthly, while a 2-bedroom unit ranges from ₱25,000 to ₱40,000.

Daily expenses remain affordable with local meals costing ₱150-300, utilities averaging ₱3,000-5,000 monthly for a small apartment, and transportation via jeepney at ₱10-15 per ride. Internet service runs ₱1,500-2,500 monthly for fiber connections suitable for remote work.

Cebu offers excellent value for retirees and digital nomads, with quality healthcare at private hospitals costing 50-70% less than Western countries, international schools for expat families, and modern shopping malls providing familiar brands alongside local markets.

Which areas of Cebu offer the best property investments?

Cebu's diverse neighborhoods cater to different buyer profiles, from bustling urban centers to peaceful beachfront communities, each offering unique investment potential.

1. IT Park & Business Park (Urban/Premium): These central business districts command the highest prices but offer maximum rental demand from young professionals and expats. Properties here rarely stay vacant, though prices start at ₱150,000 per square meter.
2. Lahug & Banilad (Established Urban): Well-developed areas with complete amenities, good schools, and hospitals. Properties balance accessibility with residential comfort, making them ideal for families and long-term residents.
3. Mandaue (Growing Suburban): More affordable than Cebu City proper, Mandaue offers value appreciation potential with new infrastructure developments. Perfect for buyers seeking space without breaking the bank.
4. Mactan/Lapu-Lapu (Beach/Tourism): Beachfront properties and resort-style living attract both tourists and retirees. Higher prices near beaches but excellent short-term rental potential, especially near the airport.
5. Talamban & Consolacion (Family-Oriented): Suburban areas with larger lots, good schools, and growing commercial developments. Ideal for families seeking space and community feel at moderate prices.
6. Maria Luisa & Banawa Heights (Luxury): Exclusive gated communities with premium amenities and security. Properties here hold value well but require significant investment starting at ₱20 million.
7. Talisay & Minglanilla (Affordable/Emerging): Southern areas offering the lowest entry prices with new developments constantly emerging. Longer commute to city center but excellent value for budget-conscious buyers.

Choose IT Park or Lahug for rental income, Mactan for tourism potential, Talamban for family living, or Talisay for affordable entry into the market.

What's expat life really like in Cebu?

Cebu offers expats a compelling blend of modern conveniences, tropical lifestyle, and welcoming local culture that makes integration relatively seamless.

The city's infrastructure supports Western lifestyles with international schools like Cebu International School and Singapore School Cebu for families, world-class medical facilities like Cebu Doctors' University Hospital, and modern malls like Ayala Center and SM City. English is widely spoken, eliminating language barriers that exist in other Asian countries.

The expat community thrives particularly in areas like IT Park, Banilad, and Mactan, with active social groups organizing regular meetups, sports activities, and cultural events. Popular gathering spots include Larsian BBQ for local food experiences and various international restaurants catering to diverse tastes.

Daily life balances urban amenities with easy access to beaches, diving spots, and mountain retreats. The tropical climate means year-round warm weather, though the June-November rainy season brings occasional typhoons. Internet speeds support remote work, making Cebu increasingly popular with digital nomads.

Cultural adaptation involves embracing Filipino hospitality, understanding the more relaxed pace of life, and participating in local festivals like Sinulog. While traffic can be challenging and bureaucracy sometimes slow, most expats find the affordable lifestyle, friendly locals, and natural beauty more than compensate for minor inconveniences.

Where and how do you succeed with long-term rentals?

Long-term rental success in Cebu depends on choosing the right location, understanding your target tenants, and setting competitive rates that ensure steady occupancy.

The best areas for long-term rentals include IT Park, Lahug, and Business Park for young professionals and BPO workers who prioritize proximity to offices and nightlife. Mandaue and Talamban attract families seeking affordable spaces near schools, while Mactan appeals to expats and retirees wanting beach access.

Your typical tenants will be call center employees earning ₱25,000-40,000 monthly, expatriate professionals, students from nearby universities, and increasingly, remote workers seeking tropical lifestyles. They want furnished units with reliable internet, backup power, security, and access to public transportation.

Studio units deliver the highest yields at 6-8% annually, outperforming many other Asian cities. To maximize returns, furnish units tastefully but durably, include utilities in the rent to attract busy professionals, maintain properties promptly to retain good tenants, and price competitively by researching similar units in your building.

It's something we develop in our Philippines property pack.

How do you maximize short-term rental income?

Short-term rentals in Cebu can generate higher returns than long-term leases, but success requires understanding regulations, choosing strategic locations, and catering to your target guests.

Most condominium buildings in Cebu allow short-term rentals, though you must check your building's specific rules and register with local authorities for tax purposes. Some municipalities require tourism permits for Airbnb-style operations, so verify requirements in your specific area.

The best locations for short-term rentals are Mactan Island near beaches and the airport for vacation travelers, IT Park and Business Park for business visitors, and Ayala Center area for shoppers and medical tourists. Properties near hospitals like Cebu Doctors' also attract medical tourism guests.

Your guests will primarily be domestic tourists during Philippine holidays, international visitors year-round with peaks during Sinulog Festival in January, business travelers attending conferences, and digital nomads staying 2-4 weeks. Chinese, Korean, and Japanese tourists form the largest international segments.

Occupancy rates average 65-75% annually, with peaks during December-January and March-April. Daily rates range from ₱1,500 for basic studios to ₱8,000+ for luxury units or beachfront properties. A well-managed studio in IT Park can gross ₱30,000-40,000 monthly, though you'll need to factor in cleaning, utilities, and platform fees of 15-20%.

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.

Sources

1. Lamudi Philippines - Cebu Properties
2. BambooRoutes - Cebu Real Estate Market Analysis
3. Cebu Grand Realty - 2025 Market Trends
4. InvestAsian - Property Investment in Cebu
5. OnePropertee - Cebu Property Listings
6. Santos Knight Frank - Market Report
7. Own Property Abroad - Cebu Buying Guide
8. Emerhub - Foreign Property Ownership Guide
9. Global Property Guide - Philippines Rental Yields
10. Numbeo - Cost of Living in Cebu