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
This article breaks down everything you need to know about rental yields in Cebu in 2026, from gross and net returns to the best neighborhoods for landlords.
We constantly update this blog post to reflect the latest market data, utility costs, and infrastructure developments shaping Cebu's rental landscape.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Cebu.
Insights
- The average gross rental yield in Cebu sits around 5.2% in early 2026, but investors near IT Park or Lahug can push that closer to 7% with the right unit type and pricing.
- Cebu's net yields drop by roughly 1.5 to 2 percentage points once you factor in vacancy, condo dues, repairs, and property taxes, so realistic net returns hover around 3.6%.
- Studios and one-bedroom condos near Cebu's BPO hubs consistently outperform larger units in both yield and occupancy because tenant demand is driven by young professionals.
- The Cebu BRT corridor, with partial operations starting in late 2025, is expected to lift rental demand along the south-to-IT Park route through 2026.
- Water rates in Metro Cebu increased by 12% in October 2025, which landlords should factor into their utility and budgeting assumptions for 2026.
- Vacancy rates in Cebu range from 4% in strong job-node areas like Mabolo to over 12% in tourism-heavy or oversupplied condo corridors on Mactan.
- Premium neighborhoods like Cebu Business Park and Banilad often yield only 3% to 4% gross because high property prices outpace achievable long-term rents.
- Central Visayas welcomed 7.5 million tourists in 2024, supporting short-term rental demand but also adding seasonality risk to certain Cebu micro-markets.
What are the rental yields in Cebu as of 2026?
What's the average gross rental yield in Cebu as of 2026?
As of early 2026, the average gross rental yield in Cebu across all residential property types sits at approximately 5.2%.
Most typical residential properties in Cebu fall within a realistic gross yield range of about 4.3% to 7.2%, depending on location, unit size, and how well the property is priced for its tenant pool.
This puts Cebu slightly above the Philippines national average for residential yields, which hovers closer to 4.5% to 5% in many Metro Manila submarkets where property prices have risen faster than rents.
The single most important factor influencing gross yields in Cebu right now is proximity to employment hubs like Cebu IT Park, where strong BPO-driven tenant demand keeps rents resilient even as new condo supply enters the market.
What's the average net rental yield in Cebu as of 2026?
As of early 2026, the average net rental yield in Cebu for residential properties comes in at roughly 3.6%.
The typical difference between gross and net yields in Cebu is about 1.5 to 2 percentage points, which accounts for all the costs that eat into your rental income before you see actual profit.
In Cebu specifically, condo association dues are often the biggest single expense that reduces gross yield to net yield, especially in mid-rise and high-rise buildings where monthly dues can run several thousand pesos and tend to increase as buildings age.
Most standard investment properties in Cebu deliver net yields somewhere between 2.7% and 5.2%, with the lower end representing premium condos in Cebu Business Park and the higher end reflecting well-located studios near IT Park or Mabolo.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Cebu.
We made this infographic to show you how property prices in the Philippines compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What yield is considered "good" in Cebu in 2026?
In Cebu's rental market in 2026, a gross yield of 6% or higher is generally considered "good" by local investors, while a net yield above 4% is seen as a strong performer.
The threshold that separates average properties from high performers in Cebu is roughly 0.8 to 1.5 percentage points above the market average, meaning anything consistently above 6% gross puts you in the top tier of rental returns for the city.
How much do yields vary by neighborhood in Cebu as of 2026?
As of early 2026, gross rental yields in Cebu can range from roughly 3% in premium lifestyle areas to as high as 8% in workhorse rental zones, creating a significant spread of about 5 percentage points across the city.
Neighborhoods that typically deliver the highest yields in Cebu are those with strong, repeatable renter demand tied to employment and schools, including Cebu IT Park, Lahug, Kasambagan, Mabolo, Talamban, and parts of Mandaue City near major job centers.
On the other end, the lowest yields tend to appear in premium areas where buyers pay a lifestyle premium that rents cannot fully match, such as Cebu Business Park near Ayala Center, Banilad and the Maria Luisa subdivision belt, and beachfront pockets on Mactan in Lapu-Lapu City.
The main reason yields vary so dramatically across Cebu neighborhoods is that property prices in prestigious areas often outrun achievable rents, while in working-class or BPO-adjacent zones, purchase prices stay moderate relative to the steady rental income they generate.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Cebu.
How much do yields vary by property type in Cebu as of 2026?
As of early 2026, gross rental yields in Cebu range from about 3% for large premium units up to 7.5% for well-located studios and small apartments near employment hubs.
Studios and one-bedroom condos near job nodes like IT Park and Mabolo currently deliver the highest average gross yields in Cebu, often reaching 5.5% to 7.5% because they attract a deep pool of BPO workers and young professionals.
Larger two-to-three-bedroom condos and houses in premium subdivisions like those near Banilad or Cebu Business Park tend to deliver the lowest gross yields, typically in the 3% to 5% range, because their higher purchase prices are not offset by proportionally higher rents.
The key reason yields differ between property types in Cebu is that renters prioritize location and convenience over extra space, which means smaller units command higher rent per peso of purchase price while larger units appeal to a narrower tenant base.
By the way, you might want to read the following:
- What rental yields can you expect for an apartment in Cebu?
- What rental yields can you expect for a condo in Cebu?
What's the typical vacancy rate in Cebu as of 2026?
As of early 2026, the average residential vacancy rate in Cebu for long-term rentals sits at approximately 7%.
Across different neighborhoods in Cebu, vacancy rates range from as low as 4% in strong employment zones like IT Park and Mabolo to over 12% in areas with heavy new condo supply or seasonal tourism dependence like parts of Mactan.
The main factor driving vacancy rates in Cebu right now is the mismatch between new condo completions and actual tenant absorption, with oversupplied corridors seeing longer vacant periods while job-node areas fill units quickly.
Compared to national averages, Cebu's vacancy rate is roughly in line with other major Philippine metros, though it can spike higher in tourism-leaning pockets where demand fluctuates with visitor seasons.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Cebu.
What's the rent-to-price ratio in Cebu as of 2026?
As of early 2026, the average rent-to-price ratio in Cebu works out to roughly 0.43% per month, which translates to about 5.2% per year when you multiply by twelve.
A rent-to-price ratio above 0.5% monthly, or 6% annually, is generally considered favorable for buy-to-let investors in Cebu because it directly corresponds to a gross rental yield that exceeds the market average and provides a better cushion against costs.
Compared to Metro Manila where rent-to-price ratios often fall below 4% in prime districts, Cebu offers slightly better value for rental investors, though it still trails some secondary Philippine cities where property prices have not risen as sharply.
We have made this infographic to give you a quick and clear snapshot of the property market in the Philippines. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in Cebu give the best yields as of 2026?
Where are the highest-yield areas in Cebu as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Cebu are Cebu IT Park and Lahug, Mabolo, and Kasambagan, all of which benefit from strong BPO-driven tenant demand and accessible commutes.
In these top-performing areas, investors can typically achieve gross rental yields in the 5.5% to 7.5% range, with IT Park and Lahug often hitting the upper end thanks to the concentration of young professionals working in nearby offices.
The main characteristic these high-yield areas share is daily, repeatable renter demand, meaning tenants are not seasonal visitors but workers and students who need housing year-round and will renew leases consistently.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Cebu.
Where are the lowest-yield areas in Cebu as of 2026?
As of early 2026, the three lowest-yield areas in Cebu are Cebu Business Park near Ayala Center, the Banilad and Maria Luisa subdivision belt, and Mactan beachfront pockets in Lapu-Lapu City.
In these low-yield neighborhoods, gross rental yields typically range from just 3% to 4.5%, which means investors often hold these properties more for lifestyle value or long-term appreciation than for cash flow.
The main reason yields are compressed in these areas is that property prices reflect prestige, scarcity, and lifestyle amenities that tenants are not willing to pay proportionally higher rents for, creating a gap between purchase cost and rental income.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Cebu.
Which areas have the lowest vacancy in Cebu as of 2026?
As of early 2026, the three neighborhoods with the lowest residential vacancy rates in Cebu are IT Park and Lahug, Mabolo, and Kasambagan, where correctly priced units rarely stay empty for long.
In these low-vacancy areas, vacancy rates typically hover between 4% and 6%, meaning landlords can expect their units to be occupied for eleven months or more each year when priced competitively.
The main demand driver keeping vacancy low in these Cebu neighborhoods is the concentration of BPO offices and IT companies, which creates a constant inflow of employees seeking nearby housing for convenient commutes.
The trade-off investors face when targeting these low-vacancy areas is that competition among landlords can limit rent increases, and purchase prices tend to be higher because other investors recognize the same demand dynamics.
Which areas have the most renter demand in Cebu right now?
The three neighborhoods currently experiencing the strongest renter demand in Cebu are IT Park and Lahug, the edge areas around Cebu Business Park where rents are more affordable, and the Mandaue-Cebu City border zone with good access to jobs.
The renter profile driving most of this demand consists of young professionals working in BPO and IT companies, typically aged 22 to 35, who prioritize short commutes and are willing to pay a premium for well-furnished units near their offices.
In these high-demand neighborhoods, well-priced rental listings typically get filled within two to four weeks, and landlords with properly furnished studios near IT Park often report receiving multiple inquiries within days of posting.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Cebu.
Which upcoming projects could boost rents and rental yields in Cebu as of 2026?
As of early 2026, the top three infrastructure projects expected to boost rents in Cebu are the Cebu Bus Rapid Transit corridor with partial operations underway, the Mactan-Cebu International Airport expansion, and the planned Metro Cebu Expressway if funding progresses.
The neighborhoods most likely to benefit from these projects include Lahug and IT Park along the BRT route, the Fuente Osmeña area, South Road Properties edge areas, and Lapu-Lapu City near the airport for aviation and tourism-related workers.
Once these projects reach fuller operation, investors in affected corridors might realistically expect rent increases of 5% to 15% over two to three years, with BRT-adjacent areas likely seeing the earliest and most noticeable bumps as commute times improve.
You'll find our latest property market analysis about Cebu here.
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What property type should I buy for renting in Cebu as of 2026?
Between studios and larger units in Cebu, which performs best in 2026?
As of early 2026, studios and one-bedroom units generally perform best in Cebu in terms of both rental yield and occupancy, especially when located near employment hubs like IT Park, Mabolo, or Kasambagan.
Studios in Cebu typically achieve gross yields of 5.5% to 7.5% (roughly ₱55,000 to ₱75,000 per million pesos invested annually, or about $950 to $1,300 USD and €900 to €1,200 EUR), while larger two-to-three-bedroom units usually fall in the 3.5% to 5% range.
The main factor explaining why studios outperform is tenant depth, meaning far more renters in Cebu can afford and actively seek small units, which translates to faster leasing and fewer vacant months.
However, larger units can be the better investment choice if you target expat families, small groups of roommates sharing rent, or longer-term corporate leases where tenants value space and stability over the lowest possible rent.
What property types are in most demand in Cebu as of 2026?
As of early 2026, the most in-demand property type for renters in Cebu is the furnished studio or one-bedroom condo located within walking distance or a short commute of major office clusters.
The top three property types ranked by current tenant demand in Cebu are studios and one-bedroom condos near IT Park and Lahug, affordable two-bedroom condos for small families or roommate groups, and compact townhouses in commuter-friendly subdivisions outside the city core.
The primary trend driving this demand pattern is Cebu's young, employment-driven population, where BPO workers and young professionals prioritize convenience and affordability over square meters, making small condos the default choice.
One property type currently underperforming in demand and likely to stay soft is the large luxury condo or high-end house in premium subdivisions, where the tenant pool is narrow and rents cannot justify the purchase price for most investors.
What unit size has the best yield per m² in Cebu as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Cebu is typically 20 to 35 square meters, which corresponds to studios and compact one-bedroom layouts.
For this optimal unit size in Cebu, landlords can achieve gross yields per square meter of roughly ₱2,500 to ₱3,500 annually (about $43 to $60 USD or €40 to €56 EUR per square meter), compared to just ₱1,500 to ₱2,200 for larger units above 60 square meters.
Smaller units achieve higher yield per square meter because renters pay for location and functionality rather than extra space, while very large units spread their rent across too many square meters to maintain competitive returns.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Cebu.
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 costs cut my net yield in Cebu as of 2026?
What are typical property taxes and recurring local fees in Cebu as of 2026?
As of early 2026, the annual real property tax for a typical rental apartment in Cebu runs approximately 0.2% to 0.6% of the property's market value, which for a ₱3 million condo works out to roughly ₱6,000 to ₱18,000 per year (about $105 to $315 USD or €95 to €290 EUR).
Beyond property tax, landlords in Cebu must also budget for condo association dues if applicable, which commonly range from ₱3,000 to ₱8,000 per month (about $52 to $140 USD or €48 to €130 EUR) depending on the building's amenities and age.
Combined, these taxes and recurring fees typically represent about 15% to 25% of gross rental income in Cebu, with condo dues being the larger portion for most condo investors and property taxes representing a smaller but unavoidable slice.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Cebu.
What insurance, maintenance, and annual repair costs should landlords budget in Cebu right now?
The estimated annual landlord insurance cost for a typical rental property in Cebu runs about 0.15% to 0.30% of property value, which for a ₱3 million condo translates to roughly ₱4,500 to ₱9,000 per year (about $78 to $157 USD or €72 to €145 EUR).
For maintenance and repairs, landlords in Cebu should budget approximately 0.5% to 1.0% of property value annually, or around ₱15,000 to ₱30,000 for a ₱3 million property (about $260 to $525 USD or €240 to €480 EUR), though newer condos may need less in the first few years.
The repair expense that most commonly catches Cebu landlords off guard is air conditioning replacement or major servicing, since the tropical climate means AC units run constantly and can fail unexpectedly, often costing ₱25,000 to ₱50,000 per unit to replace.
In total, landlords should realistically budget ₱20,000 to ₱40,000 annually (about $350 to $700 USD or €320 to €640 EUR) for combined insurance, maintenance, and repairs on a typical Cebu rental property to avoid unpleasant surprises.
Which utilities do landlords typically pay, and what do they cost in Cebu right now?
In Cebu's long-term rental market, tenants typically pay for electricity, water, and internet themselves, while landlords usually cover condo association dues if the property is in a condominium building.
When landlords do cover utilities, such as for short-term or furnished rentals, the monthly cost in Cebu runs roughly ₱3,000 to ₱6,000 (about $52 to $105 USD or €48 to €96 EUR) for a small to mid-sized unit, based on residential electricity rates around ₱11 per kWh from Visayan Electric and water rates that increased 12% in October 2025 under MCWD.
What does full-service property management cost, including leasing, in Cebu as of 2026?
As of early 2026, full-service property management in Cebu typically costs 8% to 12% of monthly rent, which for a unit renting at ₱15,000 per month works out to roughly ₱1,200 to ₱1,800 monthly (about $21 to $31 USD or €19 to €29 EUR).
On top of ongoing management, leasing or tenant-placement fees in Cebu commonly run half a month to one full month of rent per successful lease, meaning you might pay ₱7,500 to ₱15,000 (about $130 to $260 USD or €120 to €240 EUR) each time a new tenant moves in.
What's a realistic vacancy buffer in Cebu as of 2026?
As of early 2026, landlords in Cebu should set aside at least 8% to 10% of annual rental income as a vacancy buffer, which effectively accounts for roughly one month of vacancy per year.
In practice, landlords in well-located Cebu properties like IT Park or Mabolo typically experience two to four vacant weeks annually, while those in oversupplied corridors or tourism-dependent areas may see six to eight weeks or more of vacancy.
Buying real estate in Cebu can be risky
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Cebu, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Global Property Guide | It's a long-running international dataset provider that publishes its yield methodology and update cadence. | We used its Cebu City asking-price and asking-rent yield table as the anchor for gross yield estimates in early 2026. We then adjusted for Cebu's broader residential mix including houses and townhouses. |
| Lamudi Philippines | It's one of the largest property portals in the Philippines with continuously updated listing inventories. | We relied on Lamudi indirectly since Global Property Guide cites it as a core input for asking prices and rents. We also used Lamudi to verify typical Cebu unit prices and rent levels. |
| Bangko Sentral ng Pilipinas RPPI Report | BSP is the Philippines' central bank, and RPPI is an official statistical release on residential prices. | We used RPPI to ground our early 2026 narrative that national residential prices were still rising at a moderating pace. We used that macro context to explain yield dynamics in Cebu. |
| Colliers Philippines Cebu Residential Report | Colliers is a global real estate services firm with a strong research track record and published market reports. | We used it to confirm Cebu's housing stock is heavily condo-led with large annual completions in Cebu City, Mandaue, and Lapu-Lapu. We used that supply pipeline to explain vacancy and yield variations. |
| Colliers Philippines Cebu Insights | It's Colliers' official local market page updated with current Cebu commentary. | We used it to support the IT Park as a demand engine point that props up rents in Lahug and adjacent buildings. We tied that demand to neighborhoods we identified as higher-yield areas. |
| BusinessWorld | It reports official DOTr statements and project details in a mainstream business outlet. | We used it to identify which BRT corridor benefits first, from the south to IT Park. We then mapped that to specific Cebu neighborhoods along the corridor. |
| Philstar / The Freeman (BRT) | It's a major national news brand with a local Cebu desk and dated reporting. | We used it as a cross-check on timing and local framing of the Cebu BRT rollout. We kept the article current as of January 2026 without drifting into speculation. |
| Visayan Electric | It's the utility's own published rate communication channel for Cebu's main distribution area. | We used it to ground the electricity-cost discussion in how rates are announced and change month to month. We translated rates into realistic household budgeting examples. |
| Philstar / The Freeman (Electricity Rates) | It cites the utility's announced residential rate and provides a concrete peso-per-kWh figure. | We used it as a ballpark reference for electricity costs when illustrating tenant versus landlord utility scenarios. We combined it with Visayan Electric's rate page to avoid relying on a single month. |
| Cebu Daily News | It's a major Philippine news organization reporting on utility changes approved by the regulator. | We used it to update the early 2026 water-cost baseline after the October 2025 rate adjustment. We converted that into simple budgeting ranges for typical long-term rentals. |
| Philstar / The Freeman (Water Rates) | It provides a second mainstream confirmation of the water rate increase and mentions the approval context. | We used it to cross-check the magnitude of 12% and the effective date. We kept our cost ranges conservative since utilities can change again within a year. |
| LawPhil (Local Government Code) | It's a widely used legal reference for the text of Philippine laws. | We used it for the legal basis of real property tax concepts without guessing Cebu-specific ordinance details. We translated that into what landlords actually feel in annual RPT bills. |
| DILG Local Government Code PDF | It's an official government-hosted copy of the governing code. | We used it as a second government-grade reference for the same legal framework. We used that framework to explain why RPT can differ across Cebu City, Mandaue, and Lapu-Lapu. |
| Philstar / The Freeman (RPT) | It's a dated local policy report from a major publisher useful for understanding what might change in 2026. | We used it to flag that Cebu City RPT policy and collection efforts were an active topic going into 2026. We kept our net-yield math robust by using ranges. |
| SunStar (Tourism) | It explicitly attributes tourist-arrival totals to DOT-7 and provides concrete numbers. | We used it to support why certain rental micro-markets on Mactan can have strong demand but also higher seasonality risk. We reflected that seasonality in vacancy-buffer guidance. |
| Manila Bulletin (Airport) | It reports on official airport expansion plans and provides concrete passenger targets. | We used it to support rental demand in Lapu-Lapu and airport-accessible parts of Metro Cebu. We tied airport growth to certain neighborhoods that may benefit. |
| SunStar (Expressway) | It reports on Metro Cebu Expressway planning and funding status. | We used it to note that if the expressway progresses, it could improve cross-metro travel times. We kept expectations measured given the project's current funding uncertainty. |
| MyProperty Philippines | It's a property portal showing actual listing conventions and fee structures in Cebu. | We used it to verify that condo dues are often paid by owners in Cebu rental listings. We also referenced it for property management and leasing fee norms. |
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