Cebu Condos in 2025: Demand Surges Amid Supply
Cebu’s condo market in 2025 is catching more eyes lately. Supply keeps rising, but so does demand—thanks to strong IT-BPM employment, steady tourism arrivals, and new infrastructure like the Cebu BRT. Inventory life sits at about 2.1 years, which is way shorter than Metro Manila’s 8 years, so oversupply isn’t really showing up here.
Developers keep launching new projects, and buyers are still biting. In 2023, over 5,600 pre-selling units were snapped up, mostly in the ₱2.5M–₱7M range. That’s mostly end-users and practical investors. Rental yields are holding up, close to 5% gross, especially for smaller units. So, if you’re picky, Cebu still looks like a solid spot to invest.
Location’s huge. Condos near Cebu IT Park, Cebu Business Park, and along the BRT corridor are set to benefit from office demand and easier commutes. Over on Mactan, tourism keeps fueling interest in those resort-style places. Sure, there are risks, but the basics look good for folks who choose wisely.
Key Takeaways
- Cebu’s demand stays healthy and keeps up with new condo supply
- Rental yields and take-up rates still make selective investment attractive
- Best bets are spots tied to jobs, tourism, or transit
Is Cebu Facing Oversupply or Opportunity in 2025?
Cebu’s condo market is expanding, but sales and leasing numbers show demand is keeping up. Inventory levels are still manageable—especially compared to Metro Manila. A bunch of industries keep fueling the need for housing here in Metro Cebu.
Market Absorption and Inventory Life
One way to check balance in the Cebu real estate market is to look at inventory life—basically, how long it’d take to sell unsold units. Cebu’s at 2.1 years, which is a healthy clip.
Longer absorption usually means weak demand, but Cebu’s short cycle suggests developers aren’t flooding the market.
In 2023, about 10,500 new units were finished, with 5,620 units sold. Around 62% of those sales were in the ₱2.5M–₱7M price range, so end-users and practical investors are driving most of the action.
Comparing Cebu to Metro Manila
Metro Manila’s condo scene is a different story. Estimates say their unsold inventory would take about 8 years to clear, while Cebu’s is just 2.1 years.
That’s a huge gap. Metro Manila’s got a glut, but Cebu has space for more projects without tipping into oversupply.
Big developers like DMCI Homes have noticed. Their ₱20 billion Cebu City project shows they’re confident the region can take on more condos.
So, if you’re an investor, Cebu’s looking a lot less risky than the capital these days, especially if you’re after rental income or short- to medium-term appreciation.
Key Demand Drivers
Several industries are behind Cebu’s real estate demand. The IT-BPM sector keeps growing, with office vacancy in Metro Cebu dropping to ~16.8% by mid-2025. That means a steady stream of young professionals needing homes near Cebu IT Park and Cebu Business Park.
Tourism matters too. Cebu saw 5.08 million visitors in 2024, and Central Visayas had 7.52 million arrivals. That’s fueling leasing demand in Mactan and Lapu-Lapu, where short-term rentals and resort condos are all the rage.
Infrastructure is a big piece as well. The Cebu BRT starts pilot runs in late 2025, connecting city hotspots and likely boosting property values along its route. Condos near transit usually fill up faster and can charge a bit more rent.
Supply and Demand Dynamics
Cebu’s condo market is growing at a steady pace. New projects keep popping up, but demand is still soaking up the available units. End-users, value-focused investors, and solid leasing demand from IT-BPM workers and returning tourists are moving things along.
Condo Completion and Pipeline
Developers added about 10,500 new units in 2023, bringing Cebu’s total close to 80,000 condos. By 2026, forecasts put the market at roughly 93,100 units, with around 5,000 units finishing each year from 2024 to 2026.
Most of the new supply is in Cebu City, especially near Cebu IT Park and Cebu Business Park. Mandaue and Lapu-Lapu City are seeing more completions too, thanks to better infrastructure and tourism spillover.
Key developers like Cebu Landmasters are driving the pipeline, usually targeting mid-income buyers. Unlike Metro Manila, Cebu’s pace isn’t outstripping demand, so absorption periods stay reasonable.
Buyer Profiles and Pre-Selling Trends
In 2023, about 5,620 pre-selling units moved, with 62% priced between ₱2.5M and ₱7M. That range is sweet for first-time homeowners and investors looking for affordable options.
End-users dominate the mid-market, usually picking spots close to IT-BPM offices or schools. Investors lean toward smaller units, like studios and one-bedrooms, since those get better rental yields.
Developers are adjusting to what buyers want—flexible payment schemes and promos for ready-for-occupancy units make things more accessible. That’s helped keep sales healthy, even as more projects launch across Central Visayas.
Absorption Rates by Segment
Inventory life—how long it takes to sell unsold units at the current pace—is about 2.1 years in Cebu (versus ~8 years in Metro Manila).
Breaking it down: studios and one-bedrooms go fastest, thanks to rental demand from young pros and outsourcing staff. Two-bedrooms sell steadily, often bought by small families. Three-bedrooms are slower, mostly because they cost more and have a smaller buyer pool.
Investment Performance and Rental Yields
Cebu’s condo market in 2025 is still turning out steady returns for investors. Rental yields are competitive compared to other Philippine cities, and price growth is getting a boost from IT-BPM workers, tourism, and new infrastructure. Of course, it depends on the unit, the spot, and who you’re renting to.
Rental Yield Benchmarks
Gross rental yields in Cebu City average around 4.9–5.0%. After taxes, dues, and maintenance, net yields drop by 1.5–2.0 percentage points.
Condos near Cebu IT Park and Cebu Business Park usually get higher yields, thanks to steady demand from BPO pros and expats. In Mactan Newtown and Lapu-Lapu, short-term renters linked to tourism can push returns up during peak months, but it’s more hit-or-miss off-season.
Rental demand is strongest for smaller units in central business districts—employees want convenience. Bigger units take longer to rent but are still good for families and long-term tenants. Investors have to weigh steady returns in the city core versus possible ups and downs in resort areas.
Unit Types and Gross Yields
Unit size matters a lot for rental performance. As of Q1 2025, here’s the average gross yield by type:
| Unit Type | Average Gross Yield | Typical Tenant Profile |
|---|---|---|
| Studio / 1BR | ~5.7% | Young professionals, students |
| 2BR | ~5.1% | Small families, shared tenants |
| 3BR | ~4.0% | Families, long-term expatriates |
Studios and one-bedrooms near business hubs are the easiest to rent out, with quick turnover and less vacancy risk. Two-bedrooms hit a balance between yield and tenant stability. Three-bedrooms are more niche—good for families or expats, but usually lower returns per square meter.
Your best bet? Match your unit type to your target renters. If you’re after BPO workers, small units near Cebu IT Park are smart. Want to attract expats? Larger places in Cebu Business Park might make more sense.
Price Appreciation Trends
Condo prices in Metro Cebu have been ticking up at a 5–7% annual rate over the past five years. Forecasts now call for about 5% yearly growth from 2024 to 2028. That’s mostly because new supply keeps getting absorbed, and there’s less risk of oversupply than what you see in Metro Manila.
Properties near infrastructure upgrades tend to see stronger value gains. The Cebu BRT corridor, which should start partial operations in late 2025, is expected to boost values of projects nearby. Being close to big employment centers like Cebu Business Park and Cebu IT Park helps keep long-term demand steady.
Tourism-driven areas such as Mactan Newtown benefit from more visitor arrivals, which support both rental income and resale values. Still, price swings in these places can follow tourism cycles, making them a bit less predictable than city-core spots.
With the IT-BPM sector growing and tourism bouncing back, both mid-income and upscale segments in Cebu look like they’ve still got room to run.
Location Hotspots and Micro-Market Opportunities
Cebu’s condo market is really shaped by a handful of districts where infrastructure, jobs, and lifestyle options all come together. Demand and prices can swing a lot depending on how close you are to business hubs, tourist zones, or new transport.
Cebu IT Park and Cebu Business Park
Cebu IT Park and Cebu Business Park are still the heart of Metro Cebu’s condo scene. They’re packed with IT-BPM offices, which keep rental demand high from young professionals and expats.
Vacancy in nearby office towers is getting tighter, supporting steady leasing for condos. Rents here are higher than in the suburbs, especially for studios and one-bedrooms, which usually offer the best yields.
Developers often throw in amenities like co-working spaces, gyms, and shops. That combo attracts tenants who want convenience and easy access to offices. Investors eyeing these districts usually go for smaller, mid-priced units that rent out quickly.
South Road Properties and Mandaue
South Road Properties (SRP) is turning into a mixed-use hub, thanks to big township projects, new malls, and waterfront developments. Units here appeal to both end-users and long-term investors looking for growth potential.
Mandaue City, on the other hand, is more budget-friendly and draws in families and first-time buyers. Its industrial zones and warehouses mean steady jobs, which helps support housing demand.
Prices in Mandaue are lower than Cebu City’s core, but upgrades like the Metro Cebu Expressway are improving access. For buyers who want value but still need to be near business centers, Mandaue is a practical pick.
Lapu-Lapu City and Mactan Newtown
Lapu-Lapu City stands out as both a tourism and residential hub. Resort-style condos and beachfront projects are favorites among overseas workers, retirees, and investors chasing short-term rental income.
Mactan Newtown is a highlight, blending residential towers, hotels, offices, and retail in one master-planned spot. Its location near Mactan-Cebu International Airport draws both locals and foreigners.
Tourism growth keeps rental demand strong, especially for serviced apartments and vacation units. And with the Cebu-Cordova Link Expressway (CCLEX) cutting travel time to Cebu City, Lapu-Lapu’s market appeal just keeps getting stronger.
Emerging Areas and Infrastructure Impact
Places like Talisay, Consolacion, and Cordova are seeing more residential projects as infrastructure spreads out. Most of these developments target the mid-income crowd, with entry prices below what you’d pay in Cebu City’s core.
The Cebu-Cordova Link Expressway (CCLEX) has opened up new land for development and made it easier to get between Mactan and the mainland. That’s encouraging more residential and commercial projects along the route.
The Cebu Bus Rapid Transit (BRT), set for partial operations in 2025, is another big factor. Properties near the Fuente–South Bus Terminal corridor could see higher demand thanks to better accessibility, so these micro-markets are worth keeping an eye on.
Infrastructure and Economic Growth Catalysts
Cebu’s real estate outlook really hinges on its transport upgrades, tourism, and the recovery of the office sector. Projects like the Cebu-Cordova Link Expressway and Cebu BRT are reshaping how people get around, while steady demand from visitors and outsourcing firms keeps both residential and rental markets busy.
Cebu-Cordova Link Expressway and Connectivity
The Cebu-Cordova Link Expressway (CCLEX) is now a key route between Cebu City and Mactan Island. It slashes travel time from the city center to Mactan-Cebu International Airport and Lapu-Lapu City, making life easier for residents, tourists, and businesses alike.
This better connectivity boosts the appeal of projects in Mactan and Cordova, where you’ll find lots of resort-style and residential developments. Investors benefit since shorter commutes make these areas more practical for daily living or short-term rentals.
CCLEX also relieves pressure on older bridges, easing traffic that used to slow down growth. With smoother logistics for goods and services, the infrastructure supports not just real estate, but Cebu’s broader role as a trade and tourism hub.
Cebu BRT and Transit-Oriented Developments
The Cebu Bus Rapid Transit (BRT) project is set to launch pilot operations in September 2025. The first three stations—Fuente, Cebu Normal University, and Cebu South Bus Terminal—should serve about 70,000 riders daily.
Properties near these routes are likely to get a transit premium. Condos within walking distance of stations often fetch higher rents and sell faster, since commuting convenience is a top priority for so many buyers and tenants.
Developers are already eyeing mixed-use projects along the BRT corridor. These developments usually blend residential, retail, and office space, creating compact communities that cut down on car use and help support long-term property values.
Tourism and Office Demand
Tourism is still a big driver, with Cebu welcoming about 5.08 million visitors in 2024. Central Visayas as a whole logged 7.52 million arrivals, making it a major destination. This stream of travelers keeps demand up for short-term rentals, especially in Mactan and Lapu-Lapu.
Meanwhile, Metro Cebu’s office market is bouncing back. By Q2 2025, vacancy rates dropped to around 16.8% as IT-BPM firms expanded. That recovery supports leasing in nearby condos, especially in Cebu Business Park and Cebu IT Park, where young professionals want to live close to work.
Tourism and outsourcing together create a steady pool of tenants. This mix helps balance risks for investors, making Cebu’s condo market less dependent on just one growth engine.
Risks, Challenges, and Strategic Considerations
Cebu’s condo market is in better shape than Metro Manila’s, but there are still risks. Supply pipelines, changing buyer preferences, and broader economic shifts can all affect what’s possible for investors and end-users. It pays to be picky about location, pricing, and timing.
Potential Oversupply Scenarios
Cebu’s inventory life is about 2.1 years, and supply is growing at a steady clip. Around 5,000 units per year are set to finish through 2026, pushing total stock toward 93,100 units. If demand cools, it could take longer to absorb all that new inventory.
Most new projects are clustered in Cebu City, Mandaue, and Lapu-Lapu, so some micro-markets could feel the pinch. For example, areas near Mactan’s resorts might see seasonal swings in demand tied to tourism.
Developers are still targeting the ₱2.5M–₱7M price range, which already covers most sales. Too much competition here could put a lid on price growth.
It’s worth watching pre-selling take-up rates and how quickly units turn over to spot early signs of imbalance in Cebu’s property market.
Market Risks and Mitigation
Cebu real estate is sensitive to outside forces. If the IT-BPM sector slows down, that could hit rental demand near Cebu IT Park. Global economic shifts or higher interest rates might also squeeze affordability and financing.
Tourism-heavy areas like Lapu-Lapu are tied to visitor numbers. Any disruption—like stricter travel rules—could hit short-term rental demand. Delays in infrastructure projects, such as the Cebu BRT, might dampen expected value gains along transit corridors.
To play it safe, look at diversifying property types and stick with developers who have a solid track record. Buyers should also stress-test rental income with conservative yield estimates, aiming for net yields that still make sense even if leasing slows down.
Tips for Investors and Buyers
If you’re looking to invest, location resilience should be at the top of your checklist. Units close to Cebu Business Park, Cebu IT Park, or anywhere along the BRT line tend to keep their value, mostly because there’s always a steady stream of tenants hunting for convenience.
Price discipline is a big deal too. It’s smart to check average prices for each segment, so you don’t end up paying more than you should. Here’s a quick snapshot:
| Segment | Price Range | Demand Driver |
|---|---|---|
| Lower Mid | ₱2.5M–₱7M | End-users, young professionals |
| Upscale | ₱7M+ | Expats, higher-income buyers |
Going with a reputable developer can help you avoid delays and cut down on the risk of getting stuck with shoddy workmanship. Before making any decisions, take a look at rental comps and see how vacancy rates are trending in your target area.
If you’re buying for yourself, pre-selling discounts can be tempting. But for investors, it’s worth double-checking those holding costs and making sure the potential rental yields actually make sense for the long haul in Cebu’s market.
Frequently Asked Questions
Cebu’s condo market heading into 2025 looks pretty lively—absorption rates are healthy, and there’s consistent demand from both buyers and renters. Economic drivers like outsourcing, tourism, and new transport projects are keeping things moving. Rental yields aren’t the same everywhere, though; unit type and location still make a big difference in long-term investment returns.
What is the current inventory life for condos in Cebu, and how does it compare to Metro Manila?
Right now, Cebu’s inventory life is about 2.1 years. That means it would take a little over two years to sell all unsold units at today’s pace.
Compare that to Metro Manila, where it takes closer to 8 years. Cebu’s much shorter absorption period hints at a healthier balance between supply and demand.
How does the upcoming BRT system impact the Cebu condo market?
The Cebu Bus Rapid Transit (BRT) is expected to kick off pilot operations in September 2025, starting with three stations: Fuente, Cebu Normal University, and Cebu South Bus Terminal.
With a target of about 70,000 daily riders, the BRT could give property values and rental demand a noticeable boost along its corridor. It’s something to watch, especially if you’re eyeing condos in those neighborhoods.
Which condo unit types are showing the best rental yields in Cebu City?
As of Q1 2025, studios and 1BR units are pulling in the highest gross yields, around 5.74%.
Two-bedroom units are a bit lower at 5.14%, and three-bedrooms lag behind at 4.01%. After costs, you can expect net yields to drop by about 1.5–2.0 percentage points.
What are the main factors driving demand in the Cebu condo market?
The IT-BPM sector is still expanding, and that’s keeping demand up.
Tourism is another big factor, with more than 5 million visitors recorded in 2024.
And then there’s new infrastructure—like the BRT system—which just makes well-located projects that much more attractive.
What should investors consider when evaluating a condo purchase in Cebu?
Start with location, especially if it’s near business centers or transit lines.
It’s also smart to check the developer’s track record, unit pricing, and what kind of rental returns you might actually get.
And don’t skip the basics—work with a trustworthy agent and double-check those property titles before you sign anything.
How is the office vacancy rate in Metro Cebu affecting the residential condo market?
By Q2 2025, office vacancy in Metro Cebu dropped to around 16.8%, thanks to a pickup in leasing from outsourcing companies.
This shift’s been boosting residential demand, especially for condos close to Cebu IT Park and Cebu Business Park. A lot of employees just want to be near work—can you blame them?
