Riding on Cebu’s property boom
(First of two parts)
Cebu is a top-of-mind option for national players looking to capture demand outside the capital region.
The province remains one of the most attractive and largest residential hubs beyond Metro Manila, with national developers continuing to launch projects in Metro Cebu, driven by optimism about its growth potential, particularly in the luxury segment.
Metro Cebu caters to end-users and investors, with offerings varying from condominium units in business districts to leisure-themed developments in destinations like Mactan.
It helps that Cebu is part of Central Visayas, one of the country’s fastest growing regions and a key destination for office, residential, leisure, retail, and industrial projects. This compels developers to provide support facilities for newly established and expanding enterprises.
Largest condo stock outside MM
As of end 2025, Cebu’s condominium stock reached 92,300 units, the largest supply outside the capital region.
We see substantial completions in Metro Cebu from 2026 to 2029. By end 2029, Colliers expects total supply to reach 109,000 units, with an average annual completion of 4,000 units during the period. The upscale and luxury markets (P12 million and above) will likely account for more than a tenth of new supply.
National players remain aggressive in capturing take-up from the more expensive residential segment, indicative of Metro Cebu’s rising purchasing power. Supply of upscale and luxury projects remains relatively limited compared to Metro Manila.
Demand is likely to be driven by local and overseas-based Cebuano investors seeking attractive investment prospects that can also serve as viable hedges against inflation. Just like in Metro Manila, these investors are banking on the capital appreciation potential of upscale and luxury residential developments.
Affordability is king
In 2025, Colliers recorded the take-up of about 4,700 condominium units in Cebu, with the affordable to lower mid-income projects (P2.5 million to P7 million) accounting for two-thirds of the total units sold.
In our view, demand in these segments is partly sustained by investors planning to rent out their units to outsourcing employees. These segments should also see sustained demand from local investors and Filipinos working abroad seeking viable investment options.
Meanwhile, demand for house-and-lot (H&L) projects is largely driven by the economic segment (P850,000 to P2.5 million), which accounted for more than 40 percent of total H&L take-up in Cebu in 2025.
In our opinion, take-up for economic to lower mid-income projects is supported by remittance-receiving households, especially as Cebu is part of Central Visayas, one of the top sources of deployed overseas Filipino workers (OFWs) in 2024.
Thriving demand for Cebu’s lot only dev’ts
Demand for lot-only projects in Cebu is also strong. Colliers data showed that average take-up in the province for lot-only units, priced at an average of P21,000 per sqm, was 94 percent in 2025.
Lot-only developments are also recording strong price appreciation. From 2016 to 2025, residential lot prices in Cebu rose by an average of 7 percent annually. Some notable projects even posted compound annual growth rates (CAGRs) above the market average, with annual price appreciation ranging from 8 percent to 27 percent.
Masterplanning is the way to go
Colliers encourages developers to assess the viability of launching more masterplanned communities to take advantage of the government’s infrastructure projects, as Cebu continues to benefit from a recovering property market. With the largest condominium stock outside Metro Manila, the province is well-positioned to capture demand despite market volatilities.
Similar to other competitive regions, Colliers Philippines expects Central Visayas to feature more integrated communities offering not only office, residential, and retail towers but also leisure and even industrial spaces.
These developments, along with the immediate populace, are likely to be supported by institutional facilities such as hospitals and schools, as well as more sustainable and greener spaces like parks and active lifestyle amenities.
Other property segments in Cebu will be discussed next week. (To be continued)
