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Cebu's property market is experiencing steady growth with promising investment opportunities in 2025.
The city's real estate sector shows strong fundamentals driven by infrastructure development, growing rental demand, and sustained foreign investment interest. Current market conditions indicate healthy appreciation rates and attractive rental yields for both condos and houses.
If you want to go deeper, you can check our pack of documents related to the real estate market in Cebu, based on reliable facts and data, not opinions or rumors.
Cebu's property market shows steady growth with condo prices averaging ₱157,000-₱182,000 per sqm and house prices around ₱65,000 per sqm in 2025.
The market offers attractive rental yields of 5-7% for condos and 5-8% for houses, supported by strong infrastructure development and foreign investment activity.
| Property Type | Average Price per sqm | Rental Yield | Annual Growth Rate |
|---|---|---|---|
| Condos (Central Cebu) | ₱157,000-₱182,000 | 5-7% | 5-7% |
| Houses | ₱65,000 | 5-8% | 5-7% |
| Average Total Condo Cost | ₱6.8M | - | - |
| Average Total House Cost | ₱12M | - | - |
| Forecasted Growth (2025-2027) | - | - | 5-8% annually |
| New Supply by 2027 | 93,100 condo units | - | - |
| Current Vacancy Rate | 2.1 years inventory | - | - |
What's the current average price per square meter for condos and houses in Cebu right now?
As of September 2025, condos in central Cebu average ₱157,000 to ₱182,000 per square meter.
Houses in Cebu have a significantly lower price point, averaging around ₱65,000 per square meter. The average total cost for a condo unit reaches approximately ₱6.8 million, while houses average ₱12 million for a complete property.
These prices reflect the premium location advantage of central Cebu condos, which command higher prices due to proximity to business districts, transportation hubs, and urban amenities. The price difference between condos and houses also reflects land scarcity in prime central areas where high-rise developments are more common.
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How have property prices in Cebu changed over the last 12 months?
Cebu's property market has shown consistent upward momentum over the past 12 months, with both condos and houses experiencing steady appreciation.
Condo prices have increased by 5-7% during this period, reflecting strong demand from both local buyers and foreign investors. House prices have followed a similar trajectory with comparable growth rates of 5-7% year-over-year.
This steady price appreciation indicates a healthy market without the volatility seen in some other Southeast Asian cities. The growth has been supported by continued economic expansion in Cebu, infrastructure improvements, and sustained interest from the business process outsourcing (BPO) sector.
The appreciation has been particularly strong in neighborhoods near new infrastructure projects and employment centers, where demand has consistently outpaced supply.
What's the forecasted price growth for the next 1 to 3 years in Cebu's property market?
Real estate experts forecast continued growth for Cebu's property market through 2027, with annual appreciation rates expected to remain in the 5-8% range.
This forecast is based on several key drivers including major infrastructure projects coming online, sustained economic growth in the region, and continued expansion of the IT-BPM sector. The completion of the Bus Rapid Transit system and new bridge connections is expected to create additional value appreciation in connected areas.
The growth is anticipated to be more pronounced in areas directly benefiting from infrastructure improvements, while overall market stability should support consistent returns across different property types and locations.
Market analysts consider this growth rate sustainable given Cebu's economic fundamentals and development pipeline, though they caution that external economic factors could influence actual outcomes.
How strong is the rental demand in Cebu, and what are the average rental yields for condos and houses?
Rental demand in Cebu is robust, particularly in areas near employment centers and transportation hubs.
Condos in prime locations typically achieve gross rental yields of 5-7%, while houses can generate yields of 5-8% depending on location and property condition. Net rental yields after expenses typically range from 3-5% for most properties.
The strongest rental demand comes from professionals working in the IT-BPM sector, tourism industry employees, and expatriates. Short-term rental demand has also been growing, driven by Cebu's expanding tourism sector and business travel.
Properties near Cebu IT Park, business districts, and major universities command premium rents and maintain high occupancy rates. The diversified tenant base helps ensure stable rental income throughout different economic cycles.
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Which neighborhoods in Cebu are showing the highest appreciation rates?
Several key neighborhoods in Cebu are experiencing the most significant property value appreciation in 2025.
| Neighborhood | Key Features | Appreciation Drivers |
|---|---|---|
| Cebu IT Park | Business district, high-end condos | Employment hub, infrastructure |
| Lahug | Upscale residential, mixed-use | Premium location, development |
| Banilad | Commercial and residential mix | Accessibility, urban growth |
| Talamban | Emerging residential area | New developments, connectivity |
| SRP (South Road Properties) | Reclaimed land development | Master-planned community |
| Mandaue | Industrial and residential | Economic activity, transport links |
| Lapu-Lapu | Island location, tourism | Airport proximity, resorts |
What major infrastructure projects are planned or underway in Cebu that could impact property values?
Cebu is experiencing a significant infrastructure boom with multiple major projects that will reshape property values across the city.
The Cebu Bus Rapid Transit (BRT) system is currently in its pilot phase and expected to reach full operation by 2027. This project will dramatically improve public transportation connectivity and increase property values along transit corridors.
The CCLEX Bridge and planned 4th Cebu-Mactan Bridge are enhancing connectivity between Cebu City and Mactan Island, benefiting properties in both areas. The Metro Cebu Expressway and Console-Liloan Bypass Road will improve regional connectivity and logistics.
New power transmission lines and grid improvements are supporting the area's growing energy needs, while various road networks are being expanded to accommodate urban growth. These projects collectively represent billions in infrastructure investment that will support long-term property value appreciation.
How much new residential supply is expected to enter the Cebu market in the next 2 years?
Cebu's residential market is preparing for substantial new supply additions through 2027.
Developers are expected to deliver up to 93,100 new condo units by 2027, with approximately 5,000 new units entering the market annually from 2024 through 2026. This represents significant expansion in the condo supply.
The new supply is being strategically distributed across key growth areas, with many developments focusing on mid-range and affordable segments to meet growing demand from young professionals and first-time buyers.
Despite this substantial supply increase, market analysts believe demand will keep pace due to continued economic growth, population increase, and infrastructure improvements that make new areas more attractive to residents.
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 current vacancy rate for residential properties in Cebu?
Cebu's residential market maintains healthy occupancy levels with manageable inventory turnover.
The current inventory life stands at approximately 2.1 years, indicating active leasing activity in central Cebu areas. This metric suggests the market is absorbing new supply at a reasonable pace without reaching oversupply conditions seen in other major Philippine cities like Manila.
For short-term rentals, occupancy rates average around 40% for active units, reflecting growing demand from tourism and business travelers. The relatively stable vacancy rates indicate balanced supply and demand dynamics in most market segments.
Active leasing continues particularly in central Cebu locations near employment centers, universities, and transportation hubs, where tenant demand remains consistently strong.
How affordable is property in Cebu compared to average local income levels?
Property affordability in Cebu presents challenges for many local buyers, with home prices growing faster than average wages.
The gap between property prices and local income levels has created a continued need for affordable and mid-income housing options. Many developers are responding by focusing on pre-selling strategies and developing mid-range properties specifically targeted at younger and first-time buyers.
Despite affordability challenges for some segments, the market continues to attract buyers through various financing options and developer payment schemes. The strong rental market also provides opportunities for investors to generate income that can offset higher purchase prices.
Market adaptation is ongoing, with developers increasingly designing projects that balance quality with accessibility for local income levels while still maintaining attractive investment characteristics.
How active are foreign investors in Cebu's property market right now?
Foreign investors maintain significant activity in Cebu's property market, particularly in the condominium sector.
International buyers are especially active in luxury developments and new condo projects, where they can legally own units under Philippine condominium laws. The foreign investment presence is driven by attractive rental yields, improving regulatory environment, and Cebu's growing reputation as a tourism and business destination.
Investment drivers for foreign buyers include favorable exchange rates, stable political environment, and the city's strategic location in Southeast Asia. Many foreign investors are attracted by the combination of capital appreciation potential and steady rental income opportunities.
The presence of foreign capital has contributed to market stability and has encouraged developers to maintain high construction and design standards to meet international buyer expectations.
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What financing options and mortgage rates are currently available for buyers in Cebu?
Cebu property buyers have access to various financing options through local banks and financial institutions.
Local bank loans typically offer 15-20 year terms and require comprehensive income documentation with down payments ranging from 10-30% depending on the lender and buyer profile. Current mortgage rates in the Philippines generally range from 6-9% depending on the specific lender and applicant qualifications.
For comparison, international mortgage rates as of August 2025 show 30-year fixed rates around 6.6-7.1%, though local rates may vary based on Philippine banking regulations and economic conditions.
Many developers also offer in-house financing options with flexible payment terms, particularly for pre-selling projects. These developer financing schemes often provide more accessible entry points for buyers who may not qualify for traditional bank loans.
What risks or challenges could slow down property growth in Cebu in the short term?
Several potential challenges could impact Cebu's property market growth in the near term.
1. **Rising Interest Rates**: Increases in borrowing costs could reduce buyer purchasing power and slow market activity.2. **Inflation Pressures**: Higher construction costs and general inflation could impact affordability and developer margins.3. **Policy Changes**: New government regulations affecting foreign ownership or property taxation could alter investment dynamics.4. **Infrastructure Delays**: Postponements in major projects like the BRT system could delay expected value appreciation in certain areas.5. **Oversupply Risk**: The substantial new condo supply entering the market could create temporary imbalances in specific segments or locations.6. **Global Economic Challenges**: International economic downturns could reduce foreign investment and expatriate demand.However, market participants can mitigate these risks through diversification by location and property type, focusing on areas with strong fundamental demand drivers, and maintaining awareness of macroeconomic trends that could affect the broader market.
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.
Cebu's property market presents compelling opportunities for both investors and residents in 2025, with steady growth, attractive yields, and strong infrastructure support driving long-term value creation.
While challenges exist, the combination of economic growth, strategic location, and ongoing development makes Cebu an attractive destination for property investment with proper due diligence and market understanding.
Sources
- Cebu Property Market Analysis - BambooRoutes
- Philippines House Cost Analysis - InvestAsian
- Cebu Property Market Trends 2025 - Cebu Grand Realty
- Cebu Price Forecasts - BambooRoutes
- Cebu Condos Supply and Demand - Cebu Grand Realty
- Cebu Real Estate Market Trends - 3D Universal
- Philippines Rental Yields - Global Property Guide
- Cebu Infrastructure Projects - Cebu Daily News
- Cebu Infrastructure Investment - InsiderPH
- Cebu Property Market Trends - Philippine Star