Is Now a Good Time to Invest in Cebu?

1. Introduction: Cebu’s Investment Spotlight

Cebu has long been considered the “Queen City of the South” in the Philippines, offering a strategic mix of economic activity, tourism, and urban development. In 2025, many investors are asking: Is now the right time to put money into Cebu real estate, businesses, or infrastructure projects? This guide explores economic indicators, market movements, risks, and opportunities to help you decide if Cebu is a worthy addition to your investment portfolio.

2. Post-Pandemic Rebound: Cebu’s Economic Momentum

Following the challenges brought by COVID-19, Cebu’s economy has demonstrated resilience:

• Tourism Recovery: Over 3 million tourists visited Cebu in 2024, with international arrivals reaching 90% of pre-pandemic levels.

• BPO and Tech Sector Growth: Major players such as Accenture, Teleperformance, and Concentrix continue expanding operations.

• Real Estate Demand: Condo occupancy rates are back to 85–90% in central districts like Cebu IT Park and Cebu Business Park.

The result? Renewed investor confidence and active project launches across residential, commercial, and mixed-use sectors.

3. Real Estate Market Overview

Residential Property Trends

• Pre-selling condos are showing consistent appreciation, averaging 7–10% annually.

• RFO (Ready-for-Occupancy) units remain scarce in prime areas, creating urgency among buyers.

• Townhouses and house-and-lot units are gaining traction in suburban areas like Consolacion and Talisay.

Commercial and Retail Space

• Demand for small office spaces and co-working hubs is rising due to hybrid work culture.

• Retail developments are concentrated in SRP and Mandaue, driven by mall expansion and tourism inflow.

️ Beachfront Properties

• Lapu-Lapu and Mactan continue to attract luxury developers.

• Villas and resort condominiums are ideal for investors eyeing high-end short-term rental returns.

4. Infrastructure Boom Driving Value

Several government and PPP (Public-Private Partnership) infrastructure projects make Cebu increasingly investable:

These projects not only improve livability, but also raise surrounding property values.

5. Real Estate Affordability Compared to Metro Manila

Cebu remains significantly more affordable than Metro Manila:

Investors can enter Cebu’s market at a lower price point and achieve higher passive income potential.

6. Foreign Investor Landscape

Foreigners can legally invest in Cebu real estate under specific conditions:

• Condominium ownership is allowed up to 40% of the total units in a building.

• Land ownership is not permitted but long-term leasing (up to 50 years) is possible.

• Business ownership is viable through a domestic corporation (at least 60% Filipino-owned).

Cebu is a hotspot for foreign retirees, digital nomads, and global entrepreneurs seeking a more relaxed yet connected environment.

7. Rental Market Health in 2025

Rental demand remains strong, especially in urban and coastal zones:

Airbnb rentals are recovering, especially in Mactan and central Cebu. Investors with furnished units and strong management get superior returns.

8. Business and Startup Environment

Beyond property, Cebu is fertile ground for entrepreneurs:

• Strong talent pool from local universities like USC and UV.

• Growing startup scene in software, design, outsourcing, and travel tech.

• Lower operational costs than Manila.

• Incentives from PEZA and BOI for ecozones, BPOs, and tech parks.

Cebu is ideal for small businesses, especially in food, hospitality, co-living, and e-commerce.

9. Market Risks to Consider

While the outlook is strong, Cebu is not without challenges:

• Inflation & Interest Rates: Financing may become more expensive.

• Supply Chain Disruptions: Construction delays can impact RFO timelines.

• Natural Disasters: Typhoons and earthquakes remain risks. Choose properties with strong building codes and flood mitigation.

• Oversupply in Certain Segments: Some areas may see condo glut if unchecked.

Due diligence and location research are essential to mitigate risks.

10. Ideal Investment Opportunities in 2025

11. Cebu Buyer Personas

First-Time Buyer

• Budget: ₱2–4M

• Ideal Property: Studio in Lahug or Mabolo

• Objective: Long-term residence or starter investment

‍‍ Family Investor

• Budget: ₱6–8M

• Ideal Property: Townhouse in Talisay

• Objective: Retirement or passive income

Foreigner / Expat

• Budget: ₱5–10M

• Ideal Property: Furnished condo in IT Park or beachfront villa

• Objective: Lifestyle + rental yield

12. Legal and Tax Considerations

• Transfer taxes: ~1.5% of selling price

• Capital gains tax: 6% on sales of real estate

• Documentary stamp tax: 1.5%

• Rental income tax: 8–25%, depending on classification

For foreign buyers: Use a licensed real estate broker and consult a local lawyer to review contracts, especially with pre-selling agreements.

13. Forecast: What Experts Say About 2025–2026

• Colliers Philippines: Predicts continued condo appreciation in Cebu at 7–9% per year.

• Lobien Realty: Notes office space expansion in Cebu Business Park driven by hybrid companies.

• Lamudi: Ranks Cebu as one of the top 3 property hotspots in the Philippines in 2025.

14. Conclusion: Is Now a Good Time to Invest in Cebu?

Yes—if you’re strategic.

Cebu in 2025 presents a rare convergence of affordability, infrastructure growth, investor-friendly policies, and lifestyle appeal. Whether you’re eyeing real estate, launching a startup, or diversifying your passive income sources, Cebu offers strong fundamentals.

But success depends on your ability to:

• Choose the right location

• Match your investment style to market dynamics

• Monitor government policy and economic trends

• Work with trusted agents and developers

In short: Cebu is a buyer’s market—but only for the informed.