Cebu has become a thriving location outside Metro Manila for real estate developers and investors.
Colliers, diversified professional services and investment management firm, reported that the Queen City of the South has successfully met the demand of developers, with a significant increase in residential units and commercial and upscale developments in the city.
Joey Roi Bondoc, director and head of Research at Colliers, strongly affirms Cebu as a viable and attractive location for residential, commercial and real estate development in the Philippines.
“National developers continue to launch in Metro Cebu as they are optimistic about the locale’s potential for growth even beyond 2024,” said Bondoc, adding that sentiment from business and individual investors has grown positively, which will support the city’s residential sector’s growth.
However, it’s crucial for developers not to become complacent as the demand surges. They must consistently test the market and explore new projects to meet the ever-growing needs and demands of consumers.
Test the market
According to Colliers, developers need to test the market for luxury and upscale units continuously.
In comparison to Metro Manila, Metro Cebu’s supply of upscale and luxury residential projects is relatively small. However, the demand is growing due to local and overseas-based Cebuano investors who are searching for the best investment prospects in the country.
Thus, it is essential to launch affordable to lower-middle income projects to meet the needs and demands of prospective clients.
With Cebu City being a thriving location for career-oriented people, condominium supply should also be taken into consideration.
In 2023, Colliers has recorded the completion of over 10,000 new condominium units in Cebu. Among the notable and highly-awaited completions in the previous year were Avida Land’s Avida Towers Riala, Cebu Landmaster’s Mivela Garden Residences, Casa Mira Towers Guadalupe and Casa Mira Towers Mandaue.
By 2024, Colliers expects that the condominium stock in the city will reach 93,100 units, along with an average annual completion of 5,000 new units beginning this year until 2026.
Rise of leisure-oriented projects
After the indefinite pause that was brought upon by the Covid-19 pandemic, locals and tourists have flocked to every travel destination to make their goals and dreams into reality.
Considering the recovery of leisure and travel, developers need to launch more leisure-oriented and resort-themed projects, especially in Mactan.
These leisure-oriented projects will help attract locals and foreigners to see a fresher perspective of the city as it becomes a busy location for work and upscaling.
Apart from leisure-oriented projects, Colliers is also encouraging development firms to look at parcels of developable land outside of Cebu, Lapu-Lapu and Mandaue.
Development firms must widen their scope and capture potential clients by considering other areas, including Talisay City, Liloan and Minglanilla.
Apart from launching new development projects now and then, developers should also prioritize making open spaces, featuring green and sustainable establishments, and demonstrating environmentally friendly practices as consumers have become more critical and discerning on what they should purchase and invest in the long run.
With these developments, Colliers strongly believes that Cebu developers will stand out in a fiercely competitive market as long as they meet the demands of local and foreign investors.