ROI on Rental Condos in IT Park, Cebu: A 2025 Investment Guide

1. Introduction: Why IT Park Matters

Cebu IT Park is the beating heart of Cebu City’s business district. Originally a hub for BPOs and tech companies, it has evolved into a vibrant live-work-play community. As demand for urban housing grows, rental condos within IT Park have become a hotbed for investors seeking strong returns on investment (ROI).

But how profitable is it really? What’s the cost-to-income ratio? Which types of condos perform best?

This guide breaks down the numbers, trends, and strategies for maximizing ROI in Cebu IT Park’s residential rental market.

2. Understanding ROI in Real Estate

Return on Investment (ROI) in real estate is commonly calculated using the annual rental income divided by the total investment cost, expressed as a percentage.

ROI (%)=Annual Rental IncomeTotal Acquisition Cost×100\text{ROI (\%)} = \frac{\text{Annual Rental Income}}{\text{Total Acquisition Cost}} \times 100ROI (%)=Total Acquisition CostAnnual Rental Income​×100

It is influenced by factors like:

• Purchase price

• Monthly rental income

• Occupancy rate

• Property taxes and dues

• Furnishing and maintenance costs

A typical ROI range for Cebu residential units is between 4% and 7%, but well-managed condos in IT Park can exceed this.

3. Property Types in IT Park

️ Studio Units

• Price Range: ₱3.2M – ₱4.2M (pre-selling to RFO)

• Rental Rate: ₱18,000 – ₱23,000/month

• Best for: Young professionals, students, BPO workers

️ 1-Bedroom Units

• Price Range: ₱4.8M – ₱6.5M

• Rental Rate: ₱28,000 – ₱38,000/month

• Best for: Couples, digital nomads, expats

️️ 2-Bedroom Units

• Price Range: ₱6.5M – ₱9.5M

• Rental Rate: ₱45,000 – ₱65,000/month

• Best for: Families, executives, long-term tenants

4. Example ROI Calculations

Example: Studio Condo at ₱3.8M

• Monthly Rent: ₱20,000

• Annual Gross Income: ₱240,000

• Expenses (HOA, maintenance, vacancy): ₱40,000

• Net Income: ₱200,000

• ROI = ₱200,000 / ₱3,800,000 × 100 = 5.26%

Example: 1-BR Unit at ₱6.2M

• Monthly Rent: ₱32,000

• Annual Gross: ₱384,000

• Expenses: ₱60,000

• Net Income: ₱324,000

• ROI = ₱324,000 / ₱6,200,000 × 100 = 5.23%

If the unit is bought at pre-selling price or leased via Airbnb, ROI can go up to 6.5–8%.

5. What Drives High ROI in IT Park

Location Efficiency

• Walking distance to BPO buildings, cafes, gyms, and schools

• 24/7 business environment = high tenant turnover

Demand Consistency

• High demand from local and foreign professionals

• Low vacancy rates (estimated at 5–8% in 2025)

️ Developer Quality

• Notable developers include Avida (Ayala Land), Cebu Landmasters, and Taft Properties

• Properties with better amenities attract longer stays

Short-Term Rental Potential

• Airbnb-friendly condos like Avida Towers Riala and Asia Premier Residences

• Daily rates range from ₱1,800–₱3,000/night with 60–70% average occupancy

6. Pre-Selling vs. RFO: Investment Timing

Investors who buy early in pre-selling can enjoy equity growth of 15–25% upon turnover, plus high rental demand.

7. Risks and Considerations

• Association dues: Typically ₱80–₱110/sqm/month

• Vacancy periods: Average 1–2 months/year

• Furnishing expenses: ₱150,000–₱250,000 for quality fit-out

• Competition: High inventory means pricing must stay competitive

• Developer reputation: Delays or construction issues impact ROI

Mitigate risks by working with trusted brokers and thoroughly checking titles, permits, and building rules.

8. Financing and Tax Implications

Financing

• Bank loan rates (2025): ~7.5–9% interest annually

• Up to 80% LTV (Loan-to-Value) for locals; 60% for foreigners

• Pre-selling developers may offer zero-interest installment for downpayment

Taxes

• Income tax on rental: 8% (flat) or graduated rate

• Real property tax: ~1% of assessed value

• Withholding tax (if leasing to a business): 5%

Foreign investors are encouraged to register with the BIR and maintain proper documentation to remain compliant.

9. Real-Life Case Studies

‍♂️ Investor A: Studio Unit for Long-Term Lease

• Location: Avida Towers Riala

• Cost: ₱3.6M (pre-selling, 2022)

• Now rented at ₱21,000/month

• ROI: ~6.1%

• Strategy: Fully furnished, 1-year contract with BPO staff

‍ Investor B: 1-BR for Airbnb

• Property: Asia Premier

• Cost: ₱5.5M

• Average monthly gross: ₱45,000

• Occupancy: 70%

• ROI: ~7.2%

• Notes: Uses property manager for hands-free operation

10. Outlook for 2025 and Beyond

• Rising property values: 6–9% annually in IT Park

• Sustained demand: Driven by BPO sector and digital workforce

• New projects: Park Centrale Residences, Taft East Gate expansion

• Infrastructure uplift: Near completion of major access roads improves mobility

Analysts forecast steady appreciation and stable occupancy through at least 2026.

11. Tips to Maximize ROI

• Buy pre-selling in Phase 1 towers

• Use professional photos for online listings

• Offer flexible lease terms (6 or 12 months)

• Bundle internet, smart lock, and appliances

• Consider property managers for Airbnb units

12. Who Should Invest in IT Park Rentals?

• Young professionals building passive income

• OFWs seeking stable, long-term ROI

• Foreign retirees with SRRV

• Digital entrepreneurs managing remote income streams

The area appeals to investors who want reliable cash flow with long-term capital growth.

13. Final Verdict: Is IT Park Still a Smart Buy in 2025?

Absolutely. Cebu IT Park remains one of the most bankable micro-markets in the Philippines. With its dynamic ecosystem of commerce, culture, and convenience, it offers rental investors a unique blend of:

• Consistent occupancy

• Capital growth

• Favorable ROI

• Diverse tenant base

Whether you’re eyeing a studio for Airbnb or a 1BR for long-term leases, timing your entry, choosing the right developer, and pricing smartly are key to unlocking full value.