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.