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
Cebu has become one of the most attractive real estate destinations in the Philippines for foreign investors, thanks to its strong rental demand, infrastructure development, and tourism appeal.
This guide breaks down Cebu's property market by neighborhood, covering prices, rental yields, Airbnb performance, and areas to avoid, all with actual data from early 2026.
We constantly update this blog post to reflect the latest market conditions and give you the freshest insights available.
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.
What's the Current Real Estate Market Situation by Area in Cebu?
Which areas in Cebu have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas for property in Cebu are Cebu Business Park (Barangay Luz), Cebu IT Park (Barangay Apas), and the beachfront zones of Punta Engaño in Lapu-Lapu City.
In these premium Cebu locations, prices typically range from ₱180,000 to ₱260,000 per square meter for newer condo developments, with some luxury waterfront units exceeding ₱400,000 per sqm.
Each of these high-priced Cebu neighborhoods commands top prices for different reasons:
- Cebu Business Park (Barangay Luz): Walk-to-work convenience for corporate tenants and the Ayala retail ecosystem.
- Cebu IT Park (Barangay Apas): Densest concentration of BPO jobs, nightlife, and walkable amenities in Cebu.
- Punta Engaño (Lapu-Lapu City): Beachfront scarcity, resort proximity, and strong demand from expats and vacation buyers.
Which areas in Cebu have the most affordable property prices in 2026?
As of early 2026, the most affordable property areas in Cebu include Talamban (near universities), inland parts of Mandaue City away from the waterfront, and non-waterfront pockets of Talisay City south of Cebu City.
In these budget-friendly Cebu neighborhoods, prices typically range from ₱62,000 to ₱130,000 per square meter for condos, while house-and-lot packages can start around ₱2.8 million in suburban subdivisions.
The main trade-off in these lower-priced Cebu areas is longer commute times to job centers like IT Park and Cebu Business Park, and some Mandaue industrial zones have noise issues that can affect resale values.
You can also read our latest analysis regarding housing prices in Cebu.
Which Areas in Cebu Offer the Best Rental Yields?
Which neighborhoods in Cebu have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods in Cebu with the highest gross rental yields are Cebu IT Park (Barangay Apas) at 5.5% to 8.0%, Cebu Business Park (Barangay Luz) at 5.0% to 7.5%, and Punta Engaño in Lapu-Lapu City at 4% to 8% for short-term rental hybrids.
Across Cebu as a whole, typical gross rental yields for investment properties range from 4.9% to 5.7%, with smaller studio and one-bedroom units consistently outperforming larger luxury condos.
These top-yielding Cebu neighborhoods deliver higher returns for specific reasons:
- Cebu IT Park (Barangay Apas): Deep tenant pool of BPO workers ensures low vacancy and quick turnover.
- Cebu Business Park (Barangay Luz): Corporate renters and expats pay premium rents for Ayala convenience.
- Punta Engaño (Lapu-Lapu City): Tourism demand can spike yields, but seasonality creates volatility.
Finally, please note that we cover the rental yields in Cebu here.
Which Areas in Cebu Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Cebu perform best on Airbnb in 2026?
As of early 2026, the top-performing Airbnb neighborhoods in Cebu are Cebu IT Park (Barangay Apas) for business travelers and digital nomads, Punta Engaño in Lapu-Lapu City for beach tourists, and the SRP-adjacent areas (Barangays Mambaling and Inayawan) for entertainment and staycation visitors.
In Cebu City, top-performing Airbnb properties can generate average annual revenue of around ₱400,000 (approximately $7,000), with a median occupancy rate of 57% and an average daily rate of ₱1,900.
These Cebu neighborhoods outperform others for short-term rentals due to distinct advantages:
- Cebu IT Park (Barangay Apas): Walkable to offices, restaurants, and nightlife, reducing guest friction.
- Punta Engaño (Lapu-Lapu City): Proximity to resorts and airport makes it ideal for first and last nights.
- SRP-adjacent (Mambaling/Inayawan): Near SM Seaside and NuStar Resort for concerts and weekend getaways.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Cebu.
Which tourist areas in Cebu are becoming oversaturated with short-term rentals?
The three tourist areas in Cebu showing signs of oversaturation are the cookie-cutter studio clusters in Cebu IT Park, Mactan township-style developments near Punta Engaño, and generic mid-market towers in SRP that target Airbnb guests.
In Cebu City alone, there are now over 4,100 active Airbnb listings as of late 2025, with some data sources showing even higher counts, creating intense competition in popular neighborhoods.
The clearest sign of oversaturation in these Cebu areas is the gap between top performers and average listings: entry-level properties average only 18% occupancy versus 57% for the median, meaning undifferentiated units face significant vacancy risk.
Which Areas in Cebu Are Best for Long-Term Rentals?
Which neighborhoods in Cebu have the strongest demand for long-term tenants?
The neighborhoods in Cebu with the strongest demand for long-term tenants are Cebu IT Park (Barangay Apas), Cebu Business Park (Barangay Luz), and the Banilad-Talamban corridor in northern Cebu City.
In these high-demand Cebu neighborhoods, well-located condos in prime areas achieve occupancy rates exceeding 85%, with units near IT Park and Business Park typically renting within two to four weeks of listing.
Different tenant profiles drive demand in each of these Cebu neighborhoods:
- Cebu IT Park (Barangay Apas): BPO workers and tech professionals seeking walkable commutes.
- Cebu Business Park (Barangay Luz): Corporate managers, expats, and families wanting Ayala access.
- Banilad-Talamban corridor: Families with children attending international schools and universities.
The key characteristic making these Cebu neighborhoods attractive to long-term tenants is the combination of job proximity, retail convenience, and building amenities like gyms and security, which reduce lifestyle friction for busy professionals.
Finally, please note that we provide a very granular rental analysis in our property pack about Cebu.
What are the average long-term monthly rents by neighborhood in Cebu in 2026?
As of early 2026, average long-term monthly rents in Cebu range from ₱15,000 to ₱30,000 for studios, ₱25,000 to ₱45,000 for one-bedroom units, and ₱35,000 to ₱75,000 for two-bedroom condos, depending on location and furnishing quality.
In the most affordable Cebu neighborhoods like Talamban and outer Mandaue, entry-level studio apartments typically rent for ₱10,000 to ₱18,000 per month.
In mid-range Cebu neighborhoods like Lahug and Mabolo, average apartments rent for ₱20,000 to ₱40,000 per month depending on size and amenities.
In the most expensive Cebu neighborhoods like Cebu Business Park and IT Park, high-end furnished condos command ₱50,000 to ₱75,000 per month, while premium houses in Banilad can reach ₱60,000 to ₱150,000.
You may want to check our latest analysis about the rents in Cebu here.
Which Are the Up-and-Coming Areas to Invest in Cebu?
Which neighborhoods in Cebu are gentrifying and attracting new investors in 2026?
As of early 2026, the neighborhoods in Cebu that are gentrifying and attracting new investors include the SRP-adjacent barangays (Mambaling, Inayawan, Pasil edges), the Mandani Bay waterfront redevelopment zone in Mandaue City, and the Consolacion-Liloan corridor in northern Metro Cebu.
These gentrifying Cebu neighborhoods have recently experienced annual price appreciation rates of 5% to 10% for pre-selling condos, with some land values near infrastructure projects showing even stronger gains.
Which areas in Cebu have major infrastructure projects planned that will boost prices?
The areas in Cebu with major infrastructure projects expected to boost property prices are neighborhoods along the Cebu BRT corridor (from SRP to IT Park), Mactan Island benefiting from airport expansion, and areas connected by the fourth Cebu-Mactan Bridge and Metro Cebu Expressway.
The Cebu BRT, which began pilot operations in late 2025, spans 13 kilometers from South Road Properties to IT Park with 17 stations, while the proposed Metro Cebu Expressway and fourth Cebu-Mactan Bridge represent over ₱275 billion in planned infrastructure investment.
Historically, major infrastructure projects in Cebu have delivered significant price increases, with land values in Cordova jumping from ₱500 per sqm before the CCLEX bridge construction to ₱5,000 per sqm by 2020, a 900% increase in just a few years.
You'll find our latest property market analysis about Cebu here.
Which Areas in Cebu Should I Avoid as a Property Investor?
Which neighborhoods in Cebu with lots of problems I should avoid and why?
Rather than naming entire districts, investors should avoid specific risk patterns in Cebu: flood-prone low-lying areas near stressed waterways, buildings with unclear or changeable short-term rental rules, and oversupplied studio clusters with weak differentiation.
Each problem area in Cebu carries distinct risks:
- Flood-prone barangays (riverside/low-lying zones): Recurring damage costs and insurance premium spikes after 2025 floods.
- STR-restricted or ambiguous condo buildings: Your entire yield thesis can break if Airbnb gets banned mid-investment.
- Generic mid-market condos far from job centers: High vacancy risk as tenants have many substitutes.
For these problematic Cebu areas to become viable investments, they would need significant infrastructure improvements for flood control, clear written condo corporation rules permitting STR, or unique unit features that differentiate from competing supply.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Cebu.
Which areas in Cebu have stagnant or declining property prices as of 2026?
As of early 2026, areas in Cebu showing stagnation risk include generic mid-market condos in peripheral locations far from both IT Park and beaches, STR-heavy towers experiencing occupancy softness, and some older buildings with deferred maintenance issues.
While Cebu overall shows 5% to 7% annual appreciation, properties in these weaker segments have experienced flat or minimal growth of 0% to 2% annually, effectively losing value when adjusted for inflation.
The main underlying causes of price stagnation vary by area:
- Peripheral mid-market condos: Too far from jobs to command premium rents, creating asking-price stickiness.
- Oversupplied STR towers: Price wars and occupancy drops lead owners to dump units simultaneously.
- Older buildings with poor management: Rising condo dues and visible deterioration reduce buyer interest.
Which Areas in Cebu Have the Best Long-Term Appreciation Potential?
Which areas in Cebu have historically appreciated the most recently?
The areas in Cebu that have historically appreciated the most over the past five to ten years are Cebu Business Park (Barangay Luz), Cebu IT Park (Barangay Apas), Cordova (benefiting from CCLEX), and select waterfront developments in Mandaue and Lapu-Lapu.
Here are the approximate appreciation figures for these top-performing Cebu areas:
- Cebu Business Park: Around 30% total appreciation from 2020 to 2025, or 5% to 7% annually.
- Cebu IT Park: Similar 5% to 7% annual growth, with premium towers exceeding this range.
- Cordova: Land values jumped 900% from ₱500 to ₱5,000 per sqm during CCLEX construction.
- Mandaue waterfront (Mandani Bay area): Strong appreciation tied to township delivery milestones.
The main driver of above-average appreciation in these Cebu areas is the combination of job density, retail amenities, and land constraint that creates natural barriers to oversupply while sustaining tenant demand.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Cebu.
Which neighborhoods in Cebu are expected to see price growth in coming years?
The neighborhoods in Cebu expected to see the strongest price growth in coming years are Cebu IT Park (Barangay Apas), SRP-adjacent prime projects, the BRT corridor neighborhoods, and Mandani Bay in Mandaue.
Projected annual price growth for these high-potential Cebu neighborhoods:
- Cebu IT Park (Barangay Apas): 5% to 7% annual growth supported by BPO expansion and BRT access.
- SRP-adjacent projects (Mambaling/Inayawan): 6% to 10% for well-positioned developments near retail anchors.
- BRT corridor neighborhoods: Expected re-rating as transit improves commute times and walkability.
- Mandani Bay (Mandaue): Appreciation tied to successful township delivery and placemaking.
The single most important catalyst expected to drive future price growth in these Cebu neighborhoods is the completion of the BRT system and continued infrastructure investments that reduce traffic friction and expand the radius of livable, connected neighborhoods.
What Do Locals and Expats Really Think About Different Areas in Cebu?
Which areas in Cebu do local residents consider the most desirable to live?
The areas in Cebu that local residents consider the most desirable to live are Cebu Business Park (Barangay Luz) for urban convenience, Cebu IT Park and Lahug for young professionals, and Banilad for families seeking larger homes and quieter streets.
Here's what makes each of these Cebu areas most desirable to locals:
- Cebu Business Park (Barangay Luz): Traffic-proof lifestyle with Ayala mall, offices, and services within walking distance.
- Cebu IT Park and Lahug edge: Nightlife, restaurants, and modern amenities for young professionals and digital workers.
- Banilad: Tree-lined streets, international schools, and larger family homes in a quieter setting.
These locally-preferred Cebu areas attract upper-middle-class Filipino families, young professionals working in BPO and tech, and executives who value convenience over space.
Local Cebu preferences generally align with what foreign investors target, since both groups value walkability, security, and proximity to employment, though locals may prioritize school access more than foreigners do.
Which neighborhoods in Cebu have the best reputation among expat communities?
The neighborhoods in Cebu with the best reputation among expat communities are Cebu Business Park (Barangay Luz), Cebu IT Park (Barangay Apas), and Banilad for those preferring houses over condos.
Here's why expats prefer these Cebu neighborhoods over others:
- Cebu Business Park (Barangay Luz): International restaurants, reliable building amenities, and easy access to services.
- Cebu IT Park (Barangay Apas): Modern condo towers with gyms, pools, and 24/7 security that meet Western standards.
- Banilad: Larger homes with gardens, quiet streets, and proximity to international schools for families.
The typical expat profile in these popular Cebu neighborhoods includes BPO executives and managers, retirees seeking affordable tropical living, digital nomads working remotely, and foreign spouses of Filipino nationals.
Which areas in Cebu do locals say are overhyped by foreign buyers?
The three areas in Cebu that locals commonly say are overhyped by foreign buyers are Airbnb-focused condo towers marketed as "passive income" investments, beach-adjacent condos in Mactan with weak actual beach access, and heavily-marketed pre-selling projects from unfamiliar developers.
Here's why locals believe these Cebu areas are overvalued:
- Airbnb-focused towers: Occupancy data shows 40% of properties struggle, but marketing implies hotel-like returns.
- Mactan beach-adjacent condos: Marketing photos show beaches, but actual access may require resort fees or long walks.
- Heavily-marketed pre-selling projects: Foreigners pay premiums for glossy renderings; locals wait for track record.
Foreign buyers typically see Airbnb income potential and beach lifestyle that locals don't value as highly, because locals understand the competition levels, building restrictions, and actual beach access realities that marketing materials don't disclose.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Cebu.
Which areas in Cebu are considered boring or undesirable by residents?
The areas in Cebu that residents commonly consider boring or undesirable are purely commuter subdivisions far from both job centers and leisure destinations, mixed industrial-residential streets in inner Mandaue, and isolated locations with poor transport links.
Here's why residents find these Cebu areas boring or undesirable:
- Remote commuter subdivisions: Daily life becomes traffic plus errands, with no walkable entertainment or services.
- Industrial-residential mixed streets: Noise, truck traffic, and limited retail make these areas purely functional.
- Isolated developments without transport links: Dependency on private vehicles limits social and economic options.
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 |
|---|---|---|
| Bangko Sentral ng Pilipinas (BSP) | The Philippine central bank's official residential property price index. | We used it to anchor Cebu numbers within the national cycle. We also referenced its methodology to explain condo versus house price divergence. |
| Colliers Philippines | A global real estate advisory firm with published Cebu market research. | We used it to corroborate Cebu's position as a major demand center. We also validated supply pipeline and take-up dynamics against our estimates. |
| Dot Property Philippines | A large regional portal with transparent asking prices and unit sizes. | We used it to derive price-per-sqm bands for IT Park and CBP. We also extracted rent ladder data for yield calculations. |
| Lamudi Philippines | A major property marketplace with large inventory and timestamped listings. | We used it to build ground-level rent bands for Cebu Business Park. We then converted those rents into yield ranges with price estimates. |
| Airbtics | A specialized STR analytics firm with clearly defined indicators. | We used it to estimate Cebu City Airbnb performance metrics. We identified oversaturation risk when revenues don't keep pace with listing growth. |
| AirROI | A data portal with downloadable STR datasets and trailing metrics. | We used it as a second independent source to triangulate supply counts. We explained methodology differences rather than cherry-picking favorable data. |
| Philippine News Agency (PNA) | The government's official newswire quoting DOTr and DENR directly. | We used it to track BRT project status and flood risk assessments. We confirmed infrastructure timelines and environmental concerns from official sources. |
| Global Property Guide | An international property research platform with standardized yield data. | We used it to benchmark Cebu yields against national Philippines averages. We confirmed that Cebu's 5% to 7% yields align with published research. |
| SunStar Cebu | A local news outlet reporting official DOT tourism statistics. | We used it to justify where short-term rental demand is structurally strong. We also flagged where Airbnb supply can outpace tourism demand. |
| Cebu Grand Realty | A local brokerage providing market commentary and buyer insights. | We used it to understand local sentiment on neighborhood desirability. We cross-referenced their market updates with our own transaction data. |
Related blog posts