Authored by the expert who managed and guided the team behind the Philippines Property Pack
Everything you need to know before buying real estate is included in our The Philippines Property Pack
Cebu's property market is experiencing significant growth in 2025, with prices rising 5-7% annually and strong rental yields attracting both local and international investors.
The market benefits from robust infrastructure development, steady population growth, and increasing demand from overseas Filipino workers and foreign buyers within legal ownership limits.
If you want to go deeper, you can check our pack of documents related to the real estate market in the Philippines, based on reliable facts and data, not opinions or rumors.
Cebu's property market shows strong fundamentals with 5-7% annual price growth, healthy rental yields of 5-7%, and significant infrastructure investments driving demand.
Foreign buyer interest remains high despite ownership restrictions, while local demand is supported by steady population and employment growth in the metro area.
| Market Indicator | Current Status (Sep 2025) | Year-on-Year Change |
|---|---|---|
| Average Condo Price (Prime) | ₱157,000-₱180,000/sqm | +5-7% |
| Rental Yields | 5-7% | Slight increase |
| Housing Loan Rates | 6.5-8.5% | Moderate increase |
| Foreign Buyer Share | 20-30% of condo demand | Stable |
| Population Growth | Approaching 6M (province) | Steady increase |
| Employment Growth | 3-4% annually | Above national average |
| Time to Sell | Few weeks to months | Decreasing |
What are the current average property prices per square meter in Cebu compared to last year?
Property prices in Cebu have increased by 5-7% compared to last year, showing steady market growth as of September 2025.
Condominium prices in prime districts like Cebu IT Park and Business Park now range from ₱157,000 to ₱180,000 per square meter. This represents a notable increase from the previous year's average of around ₱165,000 per square meter.
House prices in established subdivisions average ₱65,000 per square meter, while raw land averages ₱16,600 per square meter. Urban and suburban hotspots experience the strongest upward pressure, particularly areas with improved infrastructure access.
The price appreciation reflects strong demand from both local buyers and overseas Filipino workers, combined with limited supply in prime locations. Foreign investors within the legal ownership framework continue to drive demand in the condominium segment.
It's something we develop in our Philippines property pack.
How much have rental rates for condos and houses in Cebu changed in the past 12 months?
Rental rates for condos in Cebu have increased across all segments, with top business locations commanding ₱25,000 to ₱60,000 monthly for typical units.
Suburban condominium units start at ₱10,000 per month, representing an increase from the lower ranges seen in the previous year. The rental market shows particular strength for one and two-bedroom units located near IT and Business Parks.
Rental yields for condos now average 5-7%, showing a slight improvement due to robust demand. Studio and smaller one to two-bedroom units near business centers deliver the highest yields at approximately 5.7% gross return as of the first quarter 2025.
House rentals vary significantly by location and property type, with properties near commercial centers and business districts commanding premium rates. The rental market benefits from steady population growth and expanding employment opportunities in the metro area.
What is the current occupancy rate for residential and commercial properties in Cebu?
Residential occupancy rates for well-located condominiums remain high, particularly for long-term rentals in prime business districts.
Short-term rental data shows median annual occupancy around 41% for vacation rental platforms, though this varies significantly by location and property type. Prime long-term rental units in business districts perform considerably better with occupancy rates exceeding 85%.
Commercial office vacancy rates remain low in prime BPO locations such as IT Park and Business Park, reflecting the continued expansion of the business process outsourcing sector. Older or less centrally located commercial buildings may experience higher vacancy rates.
The strong occupancy rates in residential properties reflect sustained demand from young professionals, overseas Filipino workers, and expatriates working in Cebu's growing business districts. Commercial occupancy benefits from the city's position as a major BPO hub in the Philippines.
How many new real estate projects or housing developments were launched in Cebu this year?
Cebu continues to launch numerous residential and mixed-use condominium projects in 2025, backed by strong demand from both local and overseas investors.
The market has seen several large-scale developments this year, particularly concentrated in Cebu Business Park, IT Park, and Mactan Island. These projects range from mid-rise residential condos to high-end mixed-use developments.
Major developers are focusing on areas with established infrastructure and proximity to business districts, airports, and transportation hubs. The Mactan area benefits significantly from airport expansion projects and tourism recovery.
While precise counts require access to local government permitting data, industry sources indicate dozens of new residential projects receive permits annually. The development pipeline remains robust as developers respond to sustained buyer demand and favorable market conditions.
Don't lose money on your property in the Philippines
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What is the average time it takes for a property in Cebu to sell compared to last year?
The average time to sell property in Cebu has decreased compared to last year, particularly for mid-range condominiums in central districts.
Well-located condos in prime areas now sell within a few weeks to several months, significantly faster than during the pandemic recovery phase when properties took longer to move. The improvement reflects strong buyer demand and limited inventory in desirable locations.
Properties in established business districts like IT Park and Business Park experience the fastest turnover, especially smaller units appealing to young professionals and investors. Larger residential houses may take longer depending on location and pricing.
Demand currently outpaces supply for in-demand property segments, creating a favorable environment for sellers. Properties priced competitively with good locations and modern amenities typically sell within the shorter timeframes.
What are the foreign buyer restrictions in Cebu, and how much of the demand is driven by overseas investors?
Foreign ownership laws in the Philippines restrict foreigners from owning land, but they can own condominium units up to 40% of any project's total units.
Most foreign purchases in Cebu occur in condominium projects, where buyers can hold full ownership titles. This legal framework channels international investment specifically toward the condo segment rather than landed properties.
Overseas investors, particularly overseas Filipino workers and expatriates, drive an estimated 20-30% of Cebu's condominium demand. This represents a significant portion of the market and provides important support for developer sales.
Foreign buyer interest remains consistently high despite ownership restrictions, as investors appreciate Cebu's growing economy, English-speaking environment, and relatively stable political climate. The city's international airport and business infrastructure make it attractive for both investment and potential residence.
It's something we develop in our Philippines property pack.
What percentage of property transactions in Cebu are financed with mortgages versus cash?
Industry estimates suggest 50-60% of primary condominium sales in Cebu are cash purchases or partially financed, with the remainder utilizing local mortgage financing.
Cash transactions remain common due to overseas Filipino worker remittances, foreign buyers who prefer cash purchases, and local buyers with accumulated savings. Many investors also prefer cash transactions for faster closing and negotiating advantages.
Mortgage financing is becoming more accessible as Philippine banks expand their loan offerings and compete for market share. Local banks now offer more competitive rates and terms for qualified borrowers.
The high proportion of cash transactions reflects both the international buyer presence and the traditional preference for debt-free property ownership among Filipino families. However, younger buyers increasingly utilize mortgage financing as lending becomes more sophisticated.
What is the population and employment growth rate in Cebu City and the wider Cebu province right now?
Cebu province's population is approaching 6 million people, driven by continued internal migration and natural population growth.
Employment growth in Cebu City and Metro Cebu outpaces the national average at approximately 3-4% annually. This expansion is fueled primarily by the IT-Business Process Management sector, tourism recovery, and infrastructure development projects.
The city continues attracting young professionals from other Philippine regions due to abundant job opportunities in business process outsourcing, information technology, and related services. Educational institutions also contribute to population growth through student migration.
Strong employment growth supports residential property demand as new residents seek housing options. The expanding middle class provides a stable base for both rental and purchase markets, particularly in the condominium segment targeted at young professionals.
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.
How are infrastructure projects like the Cebu–Cordova Link Expressway and Mactan-Cebu International Airport expansion affecting property demand?
The Cebu-Cordova Link Expressway and Mactan-Cebu International Airport expansion are significantly boosting property values and demand in connected areas.
Immediate impact is visible in Lapu-Lapu City, Cordova, and entry corridors into Cebu City, where improved accessibility has increased property interest and pricing. Areas previously considered remote now offer attractive value propositions due to reduced travel times.
The airport expansion enhances Cebu's position as an international gateway, supporting both tourism and business travel. This infrastructure improvement particularly benefits properties targeting international buyers and short-term rental investors.
Property developers are actively launching projects near these infrastructure improvements, anticipating continued demand growth. The expressway reduces traffic congestion and opens previously inaccessible areas for residential and commercial development.
These major infrastructure investments create a positive feedback loop, where improved connectivity attracts more businesses and residents, further supporting property demand and pricing appreciation across the metro area.
What are the current interest rates for housing loans in the Philippines and how do they impact Cebu buyers?
Philippine housing loan interest rates in 2025 range from 6.5% to 8.5%, depending on the fixed period and lender.
These rates affect affordability for local buyers and influence purchasing decisions between cash and financing options. Higher rates compared to previous years have moderated some speculative demand but haven't substantially slowed owner-occupier purchases.
Interest rate increases encourage cash purchases by buyers who can afford them, particularly overseas Filipino workers and foreign investors. Local buyers with strong credit profiles can still access competitive rates from established banks.
The rate environment creates opportunities for cash buyers to negotiate better prices, while financed buyers face higher monthly payments. Banks continue competing for mortgage business, offering promotional rates and flexible terms to qualified borrowers.
Which Cebu neighborhoods or districts show the strongest price growth or highest rental yields today?
| District/Area | Price Growth Trend | Rental Yield Range |
|---|---|---|
| Cebu IT Park | Strongest growth | 5.7-7% |
| Cebu Business Park | High appreciation | 5.5-6.5% |
| Banilad | Steady growth | 5-6% |
| Lapu-Lapu City | Rapid appreciation | 6-8% (short-term) |
| Mactan Island | Strong growth | 6-7.5% |
| Ayala Center Area | Consistent appreciation | 5-6.5% |
| Capitol Site | Moderate growth | 4.5-5.5% |
What are the official government forecasts or reports on Cebu's real estate market growth for the next 2–3 years?
Government and industry forecasts project continued growth for Cebu's real estate market, with approximately 5-7% annual price increases expected through 2025-2027.
Economic expansion, infrastructure development, and sustained urbanization support these growth projections. The business process outsourcing sector's continued expansion provides employment base supporting housing demand.
Rental yields are expected to remain healthy, with vacancy rates staying low in prime locations. The combination of population growth and limited supply in desirable areas supports both pricing and rental market strength.
Official forecasts emphasize Cebu's role as a secondary growth center outside Metro Manila, benefiting from government decentralization policies and private sector investment. Infrastructure projects will likely continue supporting property market expansion throughout the forecast period.
It's something we develop in our Philippines property pack.
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 demonstrates strong fundamentals with consistent price growth, healthy rental yields, and robust infrastructure development supporting long-term demand.
The market offers attractive opportunities for both investors and residents, with foreign buyers finding viable options within legal ownership frameworks and growing employment supporting local demand.
Sources
- BambooRoutes - Cebu Property Market Analysis
- BambooRoutes - Average Condo Prices Philippines
- Cebu Grand Realty - 2025 Condo Market Report
- BambooRoutes - Cebu Rental Market
- Cebu Grand Realty - Market Trends 2025
- 3D Universal - Cebu Price Update
- Woman.ph - Philippine Real Estate Resilience
- AirROI - Cebu City Market Report