Cebu and Davao Evolve as Real Estate Hubs

Real Estate Trends Affecting Cebu and Davao

Real estate investors and home buyers may want to reconsider acquiring properties in the Visayas as geographic constraints are currently driving rising prices in Cebu. Meanwhile, Davao is emerging as the region’s central for real property development. If you’ve been considering purchasing a house and lot, condo unit, or land property in Cebu and Davao regions, we’ll give you the key points to consider before sealing the deal.

Cebu Property Market’s Steady Increase

​Ricardo Inting of Land Asia Realty explained that Cebu is 93% mountains and only 7% flat land. This topographical constraint is causing land availability limitations, driving real estate prices upward. Nevertheless, the industry is projected to expand as these geographic limitations lead to a steady growth in property and land prices while development is centered in the city.

Inting furthered that as investors look for housing units in Metro Cebu, the supply-demand dynamic benefits the developers including the South Road Properties. This is expected to elevate the real estate market in the city. However, developers focus on the right market to avoid potential foreclosures and oversupply.

No Condo Oversupply in DavaoWhile there were earlier reports that there is a condominium oversupply in Metro Manila, it is the other way around for Davao City. According to Jarvie Harlem Gantalao of the Chamber of Real Estate Builders Association – Davao Chapter, there’s a strong demand for condos while the tourism and hospitality property market is growing. Developers are launching new projects to meet the demands of the condominium market.

Unlike Cebu, the real estate growth in Davao goes beyond the urban center. Developments are also in place for Tugbok District, Mintal, and Toril. Gantalao mentioned that the continuous expansion is attributed to the affordable cost of living, safe environment, and quality of life in Davao. CREBA Davao is currently focusing on the hospitality and tourism sectors with the untapped potential of the city to drive economic growth in these markets.

The main investors in both regions are overseas Filipino workers with PHP 50,000 to PHP 100,000 salary. If Cebu has limited land availability, Davao has limited entertainment options for investors. However, developers are already looking for ways to improve this aspect so that more investments will be made in the hospitality sector. Right now, they are also bolstering their efforts in improving the tourism infrastructure such as resorts, hotels, gaming facilities, and restaurants to attract retirees.

Final Thoughts

Real estate developments in Cebu and Davao City represent the thriving property market that is designed to meet the needs of investors and home buyers. The future is brighter as we see a lot of improvements being made to fit the dream lifestyle of every homeowner. If you are looking to invest in properties in Metro Cebu or Davao City, we are here to help. You can register on the REALS Corporation website for property listings. Invest now and secure your future with us!

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