Cheap Housing Boosts Residential Real Estate Demand in Cebu City
Cebu, the second-largest city in the Philippines, is solidifying its status as the largest residential hub outside Metro Manila. By 2028, the total condominium stock in Cebu is projected to reach an impressive 102,000 units, according to Colliers Philippines.
In the first half of 2025, approximately 1,900 condominium units were taken up, and more than 70% of these units were in the affordable to lower mid-income bracket, priced between P2.5 million and P7 million. This trend is expected to continue, with Colliers projecting an average annual delivery of 8,300 condominium units from 2025 to 2028.
The growing appetite for upscale and luxury residential units in Cebu is being observed. The average total contract price for upscale residential developments in Cebu is P101.3 million (US$1.8 million), and the average price per square meter is P589,600 ($10,700). Notably, Rockwell Land's The Villas at Aruga is the most expensive residential development in Cebu to date.
Joey Bondoc, director for research at Colliers Philippines, notes that demand for affordable to mid-income residential projects in Cebu is partly sustained by investors who plan to rent out their units to outsourcing employees and by local investors and Filipinos working abroad. He also encourages developers to assess demand gaps in terms of product types, prices, and amenities to capture opportunities from both affordable and luxury markets in Cebu.
Colliers recommended that developers explore specialized formats such as villas, condotels, and resort-type residences for Cebu. However, there are no specific publicly available details on companies that developed luxury residential buildings in Cebu in the first half of 2025 or the prices set for these projects in the provided search results.
The strong take-up in the house-and-lot market is also attributed to remittance-backed households, with Central Visayas ranking among the country's top sources of overseas Filipino workers. In the first half of 2025, nearly 70% of sales in the house-and-lot market in Cebu came from the affordable to mid-income segment.
As of end-2024, Metro Cebu's condominium stock stood at 69,000 units and is projected to expand to 102,000 units by 2028. This number is more than the number of units projected in Metro Manila's Cebu Business Districts over the same period (17,000 units).
Demand for luxury projects in Cebu is expected to be supported by the recovery of tourism. As Cebu continues to thrive, it offers promising opportunities for developers and investors in the real estate sector.
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