Cebu City’s Real Estate Market in 2025: Philippines’ Southern Star

In 2025, Cebu City shines as a real estate hub in the Philippines, fueled by $2.5 billion in infrastructure and 8 million projected tourists, though a 12–18-month condo oversupply tempers growth to 5%. The $3 billion residential market draws investors to IT Park and Banilad, with condos leading sales. A 15% unsold inventory and demand from OFWs and expats shape opportunities.

The Market’s Pulse

Cebu City’s economic boom, with 1.8 million visitors in Q1 2025 (500,000 international), drives demand in IT Park and Banilad. Standard condos ($80,000–$150,000, 30–40 sqm) and luxury condos ($250,000–$400,000) dominate, per Dotproperty.ph listings. Houses average $331,900, while luxury villas range from $1.2 million to $1.5 million. Q1 2025 saw 1,500 condo units sold, valued at $180 million (56.5 PHP = 1 USD). Oversupply pressures prices in Mandaue and Lapu-Lapu.

“Cebu’s market rewards strategic investors,” says Juan dela Cruz, a Cebu-based real estate agent with 12 years of experience. “IT Park condos are a solid bet.”

Q1 2025 Market Snapshot

Metric	Value
Median Condo Sale Price	PHP 6.3 million (~$111,500 USD)
Median Luxury Condo Sale Price	PHP 18 million (~$318,600 USD)
Median House Sale Price	PHP 18.75 million (~$331,900 USD)
Median Luxury Villa Sale Price	PHP 82.5 million (~$1,460,000 USD)
Tourist Visitors (2025 Projection)	8 million
Unsold Condo Inventory	15% (12–18 months)
Annual Price Growth	5%

Cebu City’s $2.5 billion infrastructure investment in 2025 bolsters property prices. The Mactan-Cebu International Airport upgrade ($1 billion) targets 15 million passengers by 2030, lifting IT Park demand. The Cebu-Cordova Link Expressway ($1 billion) connects South Road Properties, boosting prices by 3–5%. Road and utility upgrades ($0.5 billion) enhance access, despite geographic constraints (7% flat land).

Investment Dynamics

From 2020 to 2025, $1.5 billion flowed into Cebu City’s real estate: 65% ($975 million) for condos, 25% ($375 million) for houses and villas, and 10% ($150 million) for commercial. Foreign buyers, mainly Singaporeans and Koreans, drove 15% of 2023 condo sales and 10% of villa purchases, targeting projects like Filinvest Land ($111,500–$318,600) and Primary Homes ($1.2M–$1.5M). Despite COVID-19 disruptions in 2020–2021, prices grew modestly, recovering strongly by 2023. The charts below track sale prices, foreign buyer share, and price/sqm for condos, luxury condos, houses, and luxury villas.

Why Cebu City Shines

Cebu City’s 5% price growth outpaces the Philippines’ 3–4% average, with infrastructure and foreign demand (18% condo sales) offsetting oversupply risks. Foreign buyers, capped at 40% of condo units, target Filinvest Land, drawn by IT Park’s BPO hub and Banilad’s upscale appeal.

Navigating Challenges and Opportunities

Cebu City’s market offers potential, but a 12–18-month condo oversupply and geographic constraints (7% flat land) pose risks. Smaller units (2,000 new condos, 300 houses) support prices in IT Park, while developers offer discounts. Investors should focus on IT Park and Banilad, using local agents to navigate foreign ownership laws.

Cebu City’s $3 billion real estate market, backed by $2.5 billion in infrastructure, cements its role in the Philippines’ $15 billion sector in 2025. “IT Park condos are a long-term winner,” advises dela Cruz.