Cebu to benefit from recovering property market

CEBU, Philippines — Cebu is likely to reap the benefits of a recovering property market, with the largest condominium and office stock outside of Metro Manila, according to Colliers Philippines.

Colliers said Cebu is well-prepared to capture opportunities post-Covid as office transactions in Metro Cebu continue to increase. In fact, it recorded the largest volume of office space deals closed in 2022 outside of the capital region – indicating Cebu’s attractiveness as a preferred office hub in the Philippines.

In its latest market pulse, Colliers expressed confidence that just like other growth centers in the country, Cebu is on its way to post-pandemic recovery.

“The rebound should be facilitated by a business environment that encourages outsourcing and non-outsourcing businesses to thrive. In our view, national and homegrown developers are cognizant of Cebu’s accommodating business climate and are enticed to expand residential and office footprint in the city,” Colliers said.

Metro Cebu has residential options that cater to the demands of end-users and investors. The region also has diversified projects that serve the residential needs of young employees to professionals starting their own families to the more discerning local and foreign investors.

Colliers projects a recovery in residential and office space demand beyond 2023. This should be supported by regional economic growth, inflow of remittances, improving business confidence, increase in the arrival of foreign tourists, and sustained BPO (Business Process Outsourcing) investments.

“Metro Cebu is one of the most competitive cities in the Philippines and attracts major foreign and local investors. Hence, it is no longer surprising to see Cebu corner bulk of investments from national property firms,” experts at Colliers noted.

As of first half of 2022, total condominium stock in Cebu reached 57,900 units, the largest stock outside the capital region.

From 2022 to 2024, Colliers projects the delivery of about 7,020 condominium units per annum, with Cebu City likely accounting for 80 percent of new supply.

Colliers further believes that condominium demand especially in the Cebu-Mandaue corridor will partly be sustained by buyers and investors who plan to lease their units to employees in Cebu’s major business districts. This is also a corridor that caters to a discerning market. — (FREEMAN)