Should you buy property in Cebu now?

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

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Cebu. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Philippine real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Cebu, Manila, and Davao. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What are current property prices in Cebu across condos, houses, and lots?

Property prices in Cebu vary significantly by location and property type, with CBD areas commanding premium prices.

Condominiums in central business districts cost ₱75,000–₱200,000 per square meter, with high-end units exceeding ₱200,000 per square meter. Most mid-range 1-2 bedroom units are priced between ₱4 million–₱8 million.

Modern subdivision houses typically cost ₱8 million–₱12 million, while luxury options in gated communities and coastal locations exceed ₱20 million. These properties offer more space and privacy compared to condominiums.

Residential lots range from ₱5,000–₱20,000 per square meter, depending on proximity to city centers and infrastructure quality. Prime lots in exclusive areas like Maria Luisa Estate Park can exceed ₱100,000 per square meter.

As of September 2025, these prices reflect strong demand and limited supply in prime locations.

How have prices changed in the past 12 to 24 months, and what's the short-term trend?

Cebu property prices have appreciated 3–7% annually over the past 24 months, driven by economic growth and infrastructure improvements.

Condominium prices increased 3–5% per year, while houses in major subdivisions grew 4–6% annually. Townhouses and lots showed the strongest growth at 6–8% average annual appreciation.

The Cebu–Cordova Link Expressway and other infrastructure upgrades significantly boosted demand in connected areas. Some cooling occurred in late 2024, but momentum remains stronger than Manila or Davao markets.

Short-term projections continue upward with slight moderation due to stable supply and increased competition from new developments. The market maintains positive momentum heading into 2026.

It's something we develop in our Philippines property pack.

What are experts projecting for Cebu's real estate market over the next three to five years?

Experts forecast steady growth of 4–6% annually until 2028, supported by continued infrastructure development and economic expansion.

The expanding BPO sector and rising middle-class investment will sustain demand across property segments. New infrastructure projects and improved connectivity will unlock value in previously less accessible areas.

Limited developable land and high population density will keep property values strong despite periodic market slowdowns. The tourism sector recovery post-pandemic continues to drive demand for vacation properties and short-term rentals.

Foreign investment regulations and policy stability will influence long-term growth trajectories. Market maturity is expected to bring more sophisticated financing options and professional property management services.

The outlook remains optimistic with sustainable growth rather than speculative bubbles.

Which areas of Cebu are showing the strongest demand right now, and which ones look undervalued?

The strongest demand concentrates in established CBD areas and emerging coastal zones with tourism potential.

Area Category	Specific Locations	Demand Level	Investment Rationale
Strongest Demand	Cebu IT Park & Business Park	Very High	Urban walkability, rental-focused, high appreciation
Strongest Demand	Mandaue City	High	Affordable condos, CBD proximity, young professionals
Strongest Demand	Lapu-Lapu (Mactan)	High	Tourism hub, beach resorts, foreign retirees
Undervalued	Banilad, Talamban	Emerging	New subdivisions, good infrastructure, growth potential
Undervalued	Outlying Mactan neighborhoods	Moderate	Coastal lots, new residential projects
Watch Areas	North Reclamation Area	Developing	Future development potential, government projects
Premium Markets	Maria Luisa, Lahug	Selective	Luxury segment, established communities

How do rental yields compare by property type and by neighborhood?

Rental yields in Cebu range from 4–8% depending on property type and location, with CBD condominiums offering the highest returns.

Studio condominiums in IT Park and CBD areas generate 6–8% gross yields, primarily from BPO workers and expatriate tenants. These properties benefit from consistent demand and premium rental rates.

One to two-bedroom condominiums in CBD and Mandaue areas yield 5–7%, attracting long-term corporate rentals and young professionals. The rental market remains strong due to employment concentration in these areas.

Houses in upscale subdivisions like Maria Luisa and Talamban typically yield 4–6%, mainly targeting growing families and owner-occupiers. These properties focus more on capital appreciation than rental income.

Prime subdivision lots generate 1–3% through land lease arrangements, with the primary return coming from long-term appreciation rather than current income.

What is the current occupancy rate for rental properties in Cebu, both short-term and long-term?

Cebu rental properties maintain strong occupancy rates across both short-term and long-term segments.

Short-term rental occupancy averages 56% with properties booking approximately 204 nights annually. This performance varies by location, with CBD and tourist areas achieving higher rates than suburban locations.

Long-term rental occupancy remains consistently high in prime districts due to steady demand from BPO sector employees, tourism industry workers, and lifestyle migrants. CBD properties typically maintain 90%+ occupancy rates.

Seasonal variations affect short-term rentals, with peak periods during holidays and business conferences driving higher rates and occupancy. The tourism sector recovery has stabilized short-term rental performance since 2024.

Property management quality and location accessibility significantly impact occupancy rates across all segments.

How does Cebu's real estate market compare to other major Philippine cities in terms of growth and returns?

Cebu's real estate market outperforms Manila in price and yield growth while offering steadier appreciation than more volatile markets.

Cebu delivers gross rental yields of 5–8%, significantly higher than Manila's 4–5% and competitive with Davao's 5–6%. The city benefits from a more balanced supply-demand equation compared to oversupplied Manila segments.

Price appreciation in Cebu shows more consistency than Manila's cyclical patterns, with less speculative activity and more fundamental demand drivers. The market attracts both local and international investors seeking stable returns.

Davao remains cheaper for entry-level investments but offers lower yields and appreciation prospects compared to Cebu's dynamic economy. Cebu's tourism and BPO sectors provide more diverse income sources for property investors.

The city's infrastructure development pace exceeds other regional centers, creating ongoing appreciation catalysts across multiple districts.

What are the main risks that could affect Cebu property values in the near term?

Several macro and local factors could impact Cebu property values over the next 12-24 months.

Economic shocks, interest rate increases, and political instability represent the primary macro risks affecting investor confidence and financing costs. Global economic conditions directly influence foreign investment flows into Philippine real estate.

Oversupply in the condominium sector poses risks for rental competition and potential price discounts, particularly in less central locations. New developments may saturate specific micro-markets faster than demand can absorb supply.

Infrastructure delays could flatten appreciation in areas heavily dependent on planned transportation and utility upgrades. Project postponements affect property values in emerging districts banking on connectivity improvements.

Policy changes regarding foreign ownership rules, taxation reforms, and environmental regulations could impact specific property segments and investor categories.

It's something we develop in our Philippines property pack.

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.

If you want to buy to live in, which areas are best suited for lifestyle, convenience, and future appreciation?

The best areas for owner-occupiers combine lifestyle amenities, daily convenience, and strong appreciation potential.

Cebu Business Park and IT Park offer modern urban living with walkability, dining options, shopping centers, and entertainment venues. These areas provide the most convenient lifestyle for professionals working in CBD locations.

Maria Luisa Estate Park, Banilad, and Lahug represent upscale subdivision living with security, privacy, good schools, and established communities. These locations suit families seeking suburban comfort with city access.

Lapu-Lapu provides coastal lifestyle benefits with beach access, resort-style living, and new infrastructure development. The area appeals to those prioritizing recreational amenities and waterfront views.

All three categories offer strong appreciation potential due to limited supply, infrastructure improvements, and sustained demand from both local and international residents.

If you want to buy to rent out, where should you focus to maximize cash flow and tenant demand?

Rental investment success in Cebu depends on targeting high-demand tenant segments with appropriate property types.

1. **CBD Condominiums (IT Park, Business Park)** - Maximum rental demand from BPO workers, expatriates, and young professionals seeking urban convenience2. **Mandaue City Properties** - Affordable entry points with high yields from young professional tenants and proximity to employment centers3. **Tourist Zone Units (Mactan, Lapu-Lapu)** - Airbnb and vacation rental income potential with seasonal premium rates4. **University-Adjacent Properties** - Student housing demand provides consistent occupancy with multiple tenant arrangements5. **Transport Hub Locations** - Properties near major transportation connections attract tenants prioritizing mobility and convenience

If you want to buy to resell, which property types and locations have the highest potential for capital gains?

Capital gains potential focuses on properties with strong liquidity and appreciation drivers in Cebu's developing areas.

Mid to high-end condominiums in CBD areas offer the best resale potential due to consistent buyer demand and market liquidity. These properties attract both investors and end-users, ensuring multiple exit strategies.

Developable lots in growing subdivisions like Banilad, Talamban, and North Reclamation Area present significant appreciation potential as infrastructure development unlocks value. Early entry into these areas provides maximum capital gains opportunity.

Luxury waterfront homes show strong appreciation when purchased at pre-selling stages, benefiting from construction completion and area development. The limited supply of premium coastal properties supports long-term value growth.

Pre-selling condominium units in established developers' projects offer capital appreciation from construction phase to completion, typically 20-30% over 3-4 year development periods.

It's something we develop in our Philippines property pack.

Given different budgets, what's the best positioning strategy now for buyers who want to enter Cebu's property market?

Budget-based investment strategies should align with risk tolerance, investment timeline, and return expectations.

Budget Range	Recommended Strategy	Property Focus	Expected Returns
₱1M-₱3M	High-yield rental entry	Studio/1BR condo for rental income	6-8% rental yield, quick entry
₱4M-₱8M	Balanced investment	1-2BR CBD condo, starter house, small lot	5-7% yield + capital appreciation
₱10M-₱20M	Premium positioning	Family home, prime condo, large lot	4-6% yield + strong appreciation
₱20M+	Luxury/land banking	Seaside villa, penthouse, prime lots	3-5% yield + premium appreciation
Multiple properties	Diversified portfolio	Mix of rental and appreciation assets	Balanced risk and return profile
Foreign investors	Condo-focused strategy	CBD condos, resort properties	Compliance with ownership rules
First-time buyers	Conservative approach	Established areas, proven developers	Lower risk, steady growth

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.

Sources

1. Cebu Grand Realty Market Trends 2025
2. BambooRoutes Cebu Price Forecasts
3. BambooRoutes Philippines 5-Year Forecast
4. MyHouse Cebu Condominiums
5. Dot Property Cebu Condos
6. BSP Residential Property Price Index
7. Cebu Real Estate Trends 2025
8. Airbtics Cebu Airbnb Revenue
9. Global Property Guide Philippines
10. BambooRoutes Cebu Property Analysis