Published: July 5, 2019
Full Article: Now is the Time to Invest in Metro Cebu’s Property Market
Cebu’s property sector is on a roll and shows no signs of slowing down.
Thanks to vigorous economic fundamentals, investments continue to pour in on the province’s real estate industry as more and more property developers, both major ones and boutique firms, continue to cash in on the growing demand for real estate properties across Cebu, particularly in metropolitan areas such as Cebu City, Mandaue, and Lapu-Lapu .
Also known as Metro Cebu, it is almost twice the size of Metro Manila and comprises Cebu City, six surrounding cities (Carcar, Danao, Mandaue, Lapu-Lapu, Naga, and Talisay) and six municipalities (Compostela, Consolacion, Cordova, Liloan, Minglanilla, and San Fernando).
A leading investment destination
The continuing property boom in Metro Cebu solidifies its position as the leading investment destination in the real estate sector in the Philippines outside Metro Manila. Metro Cebu’s strong economy, large talent pool, and progressive infrastructure development are expected to turn the metropolis into a globally competitive metro area in the future.
Last year’s opening of the Terminal 2 Mactan – Cebu International Airport is expected to usher in an even greater influx of tourists and investors to Metro Cebu and other tourist hotspots such as Bantayan Island, Malapascua, and Oslob. The continued improvement of major infrastructure facilities in Metro Cebu will further facilitate the inflow of capital to the area and spur its growth momentum in the foreseeable future.
Double-digit growth rates
A number of international property consultants are projecting double-digit growth rates over the next couple of years for office spaces in Cebu, with the business process outsourcing industry driving the healthy demand for these. This also reflects the long–term positive outlook of property consultants and property developers on Metro Cebu’s real estate sector, particularly on the office space market and the residential sector.
The asking lease rates continue to grow in Cebu’s office space sector, averaging between php600 and php650 per square meter per month. Prime office spaces located in some of Cebu’s major business districts are valued between php150,000 and php200,000 per square meter. Cebu’s business districts are expected to have close to one million square meters of office spaces by next year serving the business process outsourcing industry, the information technology sector, and other business enterprises eager to set up their operations in Metro Cebu.
Robust demand for residential properties, too
The expected boom in the office space market would most likely result in a robust demand for residential areas, whether they are condominium units, house and lots, or townhouses. Metro Cebu has also been experiencing an influx of migration composed of residents from other parts of the Visayas—such as those coming from various towns and cities in Negros Occidental, Negros Oriental, and Bohol—due to economic opportunities available in the island. In fact, a number of residents in Metro Manila and in other parts of Mindanao such as Davao City and Cagayan de Oro City are making Metro Cebu their new home. This wave of migration has been driving demand for residential properties in Metro Cebu.
The continued growth of Metro Cebu’s real estate market has also opened up economic opportunities in other parts of the province, such as those in the fringes of the metropolitan areas, and in nearby provinces in the Visayan region. Cebu’s economic boom helps facilitate the economic growth of those areas outside Metro Cebu. Iloilo and Bacolod, for instance, continue to experience a surge in commercial and development activities.