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
Why is Cebu emerging as a prime destination for property investment in 2025? Is it the impressive rental returns, the thriving tourism sector, or the competitive pricing compared to other international markets? What makes Cebu particularly attractive to investors?
We encounter these questions frequently because we are actively engaged with developers, real estate agents, and investors like you. Given the growing interest in this market, we've decided to compile our insights into a comprehensive article for everyone's benefit.
Our aim is to present a compelling case for investing in Cebu's real estate market, supported by our firsthand experience and market expertise.
If you feel we've overlooked an important aspect or wish to learn more, please don't hesitate to reach out (we respond very quickly). Your feedback enhances the quality of our content.
Finally, please remember that this is not financial or investment advice. Real estate investment involves inherent risks, and market conditions can change unexpectedly. We strongly recommend conducting thorough research and consulting with a qualified financial advisor before making any investment decisions.
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1) Cebu’s urban projects mean property values are likely to rise in the future
Cebu is buzzing with urban development projects that are set to increase property values.
One major factor is the government's hefty investment in infrastructure, like the Metro Cebu Expressway and Cebu-Cordova Link Expressway. These projects are making it easier to get around, which means properties in these areas are becoming more appealing to buyers and investors.
Then there's the construction of new business districts and IT parks, which is a big deal for property values. With two major IT parks popping up in Cebu City, we're expecting a wave of business process outsourcing (BPO) firms to move in, creating thousands of jobs. More jobs mean more people looking for places to live and work.
Let's not forget the expansion of the Mactan-Cebu International Airport. By boosting its capacity, Cebu is cementing its status as a key transportation hub. This is likely to draw in more tourists and business travelers, which will only increase the demand for real estate.
Insider tip: The local government is also focusing on sustainable urban planning, which is attracting eco-conscious investors. This approach not only enhances the quality of life but also adds long-term value to properties.
With all these developments, Cebu is becoming a hotspot for real estate investment. The combination of improved infrastructure, job creation, and increased tourism is setting the stage for significant property value appreciation in the coming years.
Sources: MyTV.ph, SunStar, Asian Development Bank
2) Cebu’s location in the Visayas makes it a key commercial hub
Cebu's prime spot in the Visayas makes it a bustling center for business.
In 2023, the region's economy saw a boost with a 7.3% rise in Gross Regional Domestic Product, hitting PHP1.38 trillion. This growth is a clear sign of Cebu's thriving commercial scene. The area is buzzing with activity, making it an attractive place for potential property buyers looking to tap into a vibrant market.
Tourism is another big player here. By September 2023, Cebu had welcomed over 2 million tourists, both local and international, which is a 28% jump from the previous year. This surge in visitors is great news for local businesses, fueling the growth of hotels, resorts, and fun spots. If you're considering investing in property, the tourism boom is a promising sign of potential returns.
Getting around Cebu is getting easier, thanks to new infrastructure. The Cebu-Cordova Link Expressway and the expanded Mactan-Cebu International Airport are game-changers, boosting connectivity for goods and people. This makes Cebu even more appealing for businesses and trade, and a smart choice for property investment.
Cebu is also a hotspot for Business Process Outsourcing (BPO) companies. With thousands working in the IT-BPM sector and 35 IT parks and centers in major cities, the industry is thriving. This not only strengthens the local economy but also draws more businesses to the area, making it a dynamic place to own property.
Sources: Manila Times, InCorp Asia, PSA
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.
3) Cebu’s booming tech industry means more jobs and a higher demand for housing
Cebu's tech industry is booming, creating a wealth of job opportunities.
In recent years, there's been a 25% surge in tech jobs, driven by exciting trends like AI and blockchain. This means more roles are opening up, which is fantastic news for job seekers looking to dive into the tech world.
With tech companies flocking to Cebu, especially in the new IT parks, the job market is set to expand even further. These parks are projected to employ at least 15,000 people, giving the local economy a significant boost. The government is sweetening the deal by offering incentives to tech startups, making Cebu a hotspot for tech businesses.
As tech professionals move to Cebu for these opportunities, the demand for housing is on the rise, particularly near tech hubs. This demand is pushing up rental yields, indicating that people want to live close to their workplaces. Cebu's appeal is further enhanced by its good quality of life and affordable living costs, making it a top choice for those in the tech industry.
For those considering a move, Cebu offers a vibrant lifestyle with a mix of urban and natural attractions. The city's tech growth is not just about jobs; it's about creating a community where professionals can thrive. With the tech scene expanding, the need for housing is becoming more pressing, offering potential investment opportunities in the real estate market.
Sources: Nucamp, SunStar, Ayala Land
6) With the airport expansion, Cebu is more accessible, boosting tourism
The expansion of the Mactan-Cebu International Airport has made Cebu more accessible and boosted tourism.
In the first nine months of 2024, passenger volume grew by nearly 11%, reaching 8.32 million compared to 7.51 million in the same period in 2023. This means more people are traveling to and from Cebu, making it a hot spot for both domestic and international tourists.
With a 8% increase in flights during the same period, 20 airlines now serve 40 destinations. This gives travelers more options and makes visiting Cebu easier than ever. The airport has also introduced PWD-friendly restrooms, enhancing the travel experience for everyone.
The rise in passenger traffic and flight operations has led to a surge in tourism revenue. In 2023, tourism's contribution to the economy rose to 8.6% of GDP, up from 6.4% in 2022. This economic boost shows that more tourists are flocking to Cebu, drawn by its improved accessibility and glowing media coverage.
Local businesses are feeling the positive impact too, with hotels and restaurants seeing more customers. The airport's expansion is not just about numbers; it's about making Cebu a more attractive destination for everyone.
As Cebu continues to grow as a tourist destination, the airport's expansion plays a crucial role in shaping its future. The increased accessibility is a game-changer, making Cebu a must-visit spot in the Philippines.
Sources: Mactan airport records higher passenger traffic for Q1 2024, Mactan-Cebu International Airport passenger traffic up 11%, MCIA sees more passengers
7) Cebu’s infrastructure projects, like the Cebu-Cordova Link Expressway, improve connectivity
The Cebu-Cordova Link Expressway (CCLEX) is a game-changer for connectivity in the region.
Thanks to the CCLEX, the travel time between Cebu City and Mactan-Cebu International Airport has been slashed by about 40 minutes. This makes life easier for both locals and tourists, boosting overall accessibility.
The expressway has sparked a surge in demand for residential and commercial spaces nearby. Improved connectivity is a magnet for investments, which in turn drives up property values. For example, land prices in Cordova skyrocketed from P500 per square meter in 2018 to P5,000 per square meter by January 2020.
Traffic congestion in Cebu City has eased, thanks to the CCLEX offering an alternative route. This not only reduces congestion but also enhances connectivity, making daily commutes smoother for everyone.
With the expressway in place, the region is seeing a ripple effect of development. The improved infrastructure is a catalyst for economic growth, attracting businesses and boosting the local economy.
Sources: Cebu Daily News, EFCO Forms
9) Cebu’s top universities mean a steady demand for student housing
The presence of top universities in Cebu like the University of Cebu and the University of San Carlos is a major draw for students.
With 250,255 students enrolled at the University of Cebu this year, up by 10,000 from last year, there's a noticeable surge in the need for student housing. This increase is pushing rental prices up, especially in areas close to these universities.
Students are flocking to Cebu, and they often want to live near their schools for convenience. This trend is causing a boom in student accommodation facilities around the city, making it a hot spot for property investors.
Many students, especially those from abroad, prefer off-campus living for a taste of independence. This preference is driving the demand for housing near universities even higher, as international students also look for nearby places to stay.
As more international students arrive, the demand for accommodation continues to grow. This influx is a golden opportunity for property buyers looking to invest in rental properties.
In Cebu, the student housing market is thriving, thanks to the city's educational appeal. If you're considering buying property here, the student rental market is a promising option.
Sources: Philstar, EduRank, 4icu.org
10) Expat families are drawn to the area because of its international schools
International schools in Cebu are a major attraction for expatriate families.
In 2023, there were 13,614 English-medium international schools worldwide, and Cebu is home to a significant number of them. These schools enroll nearly 7 million students globally, showing a strong demand for international education. For expatriate families, having access to such schools is a key factor when deciding where to live.
The rise in expatriate families in Cebu is also linked to foreign investment in the real estate market. This investment has spurred the development of upscale residential areas tailored for expatriates, making Cebu an appealing place to settle. The presence of international schools in these neighborhoods adds to their attractiveness.
There's a noticeable increase in demand for rental properties near international schools, driven by expatriates and business travelers. This trend suggests that families are keen on living close to quality education options. As a result, property values in these areas have appreciated, highlighting their desirability.
Living near international schools is not just about convenience; it's a lifestyle choice for many expatriates. These schools offer a curriculum that aligns with global standards, making transitions smoother for children who have moved from other countries. This is why proximity to international schools is a top priority for many families.
Sources: ISC Research, Cebu Grand Realty
11) With a low crime rate, the city is a desirable place to live
Cebu City is becoming a top choice for new residents because of its impressive safety record.
In 2024, the city experienced an 83.08% drop in crime incidents during the first quarter compared to the same time in 2023. This dramatic decrease means people can enjoy a sense of security in their everyday lives. The city's low crime rate makes it an attractive place to live.
Special events like Misa de Gallo in 2024 saw a 46.07% reduction in crime, thanks to proactive measures by local authorities. With a crime clearance rate of 92.49% and a crime solution rate of 89.59%, Cebu's law enforcement is not just keeping the peace but also efficiently resolving cases.
The Cebu City Police Office has been smart about crime prevention, boosting police visibility and focusing on areas that need it most. Programs like ABERIN, which involve the community in crime prevention, have played a big role in keeping the city safe. These efforts have likely made residents feel more secure, enhancing Cebu's appeal.
Locals often talk about how these strategies have changed the vibe of the city, making it a more inviting place to settle down. The community's involvement in safety initiatives has fostered a sense of shared responsibility, which is rare in many urban areas.
For anyone considering a move, Cebu offers not just beautiful landscapes and vibrant culture but also a reassuringly low crime rate, making it a standout choice for potential homeowners.
Sources: Cebu Daily News, PNA, Cebu Daily News
Don't buy the wrong property, in the wrong area of Cebu
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
14) In Cebu, you can find more affordable properties than in other major cities
Cebu's real estate prices are more affordable compared to other major cities in the Philippines, like Manila.
One reason for this is the slower price increases in Cebu. Over the past few years, property prices in Cebu have grown at an average annual rate of 5-7%, which is slower than the rapid appreciation seen in other urban areas.
The cost of living in Cebu also plays a role in its affordability. In 2023, Cebu ranked as one of the least expensive cities globally, making it an attractive option for both locals and expatriates. This lower cost of living contributes to the overall affordability of real estate in the city.
Additionally, Cebu has been successful in meeting the demand for residential and commercial developments. Reports from real estate agencies indicate a significant increase in new units, which helps keep prices competitive. This strong market presence, combined with reasonable rental yields, makes Cebu an appealing choice for property investors.
For those considering a move, Cebu offers a unique blend of urban and island life. The city is known for its vibrant culture, beautiful beaches, and a growing business district, making it a desirable place to live for many.
Investors are also drawn to Cebu due to its strategic location in the Visayas region, which serves as a hub for trade and commerce. This has led to a steady influx of businesses and professionals, further boosting the real estate market.
Sources: Philippine Property Hub, Living Cost, Tribune
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.
Related analyses:
- Overview of the current state of the real estate market in Cebu