top of page
Search

Investment Value of Condominiums in Cebu IT Park

ree

Executive Summary


This report provides a detailed analysis of the investment value of condominiums in Cebu IT Park, a prominent business and residential area in Cebu City, Philippines. The study considers the historical development and current status of Cebu IT Park, the dynamics of its condominium market, the impact of ongoing and planned infrastructure and development projects in Cebu, and potential risks and challenges associated with investing in this area. Investing in a condominium in Cebu IT Park presents a valuable opportunity due to strong demand driven by the thriving IT-BPM sector, potential for capital appreciation linked to ongoing developments, and attractive rental income prospects. However, potential investors should also be aware of general real estate investment risks and specific challenges in the Cebu property market.


Introduction: Cebu IT Park - A Prime Investment Destination


A Brief History and Evolution


Cebu IT Park, formerly known as Asiatown I.T. Park, has transformed remarkably to become a leading economic and lifestyle hub in Cebu City. Its location was once the site of the old Lahug Airport, which began operations in 1938 but ceased in 1966 when Cebu's main airport was relocated to Mactan Island.1 For over two decades, the land remained largely unused until it was acquired in 1989 by Cebu Property Ventures, Inc., a subsidiary of the prominent Philippine property developer Ayala Land.2 This acquisition occurred shortly after Ayala Land also acquired the nearby Club Filipino golf course, which would later become the site of the Cebu Business Park.2

The vision to redevelop the former airport into a technology-driven economic zone gained momentum in the late 1990s. On April 6, 2000, the Philippine Economic Zone Authority (PEZA) board approved the area as an economic zone.2 This was followed by a significant milestone on February 27, 2001, when Presidential Proclamation No. 12 officially designated it as an Information Technology Special Economic Zone.2 This declaration paved the way for focused development and the attraction of information technology and business process outsourcing (IT-BPM) companies.

Construction on eOffice One, the first office modules within Cebu IT Park, commenced in 2001, and the facility opened its doors in 2002.2 Although this initial structure was later closed and demolished, its establishment marked the beginning of Cebu IT Park's journey as a major business center. In 2019, Ayala Malls Central Bloc opened on the site of the former eOffice One, becoming the second Ayala Mall in Cebu and the first major retail establishment within the property.2 This development, along with the adjacent Seda Hotel and two office buildings, serves as Ayala's centerpiece for a mixed-use development within the business park. On the residential front, Asia Premier Residences holds the distinction of being the first residential condominium in IT Park, opening its doors in 2011.2 The history of Cebu IT Park demonstrates a successful transformation from an underutilized space into a thriving economic and residential zone, driven by strategic vision and significant investment.2


Current Status as a Business and Lifestyle Hub


Today, Cebu IT Park stands as a prominent 27-hectare economic zone located in Lahug, Cebu City.2 It has firmly established itself as a major business district and a primary hub for the burgeoning BPO industry in the Philippines, attracting numerous multinational companies and innovative technology startups.2 The park boasts modern infrastructure complemented by well-maintained landscaped green spaces, a diverse range of dining establishments, and various retail outlets, creating a vibrant and dynamic atmosphere that appeals to both professionals and visitors.2

Cebu IT Park is recognized as a mixed-use township that truly embodies a 24/7 lifestyle.2 The business district is one of the most modern and undoubtedly the busiest in Cebu City. Home to a multitude of IT-BPM offices, the township enjoys near-full occupancy, indicating its strong appeal and functionality for both workers and residents.2 It is equipped with its own mall featuring a well-stocked supermarket, and its 24-hour transport terminal provides ease of transfer to various points across the entire Cebu Province.2 This central location and excellent connectivity make it a convenient base for travelers and a desirable place to live and work.2

The atmosphere within Cebu IT Park is consistently described as lively and energetic, with a seamless blend of residential and business areas.2 Residents and visitors can enjoy a wide array of dining options, from popular fast-food chains to local restaurants, catering to diverse tastes and budgets.2 The park also features live band performances at various bars, adding to its vibrant nightlife.2 For leisure and recreation, Garden Bloc offers a 3-hectare open park space.2 Reviews of Cebu IT Park highlight its bustling nature, driven by the constant activity of call centers, surrounded by modern high-rise buildings and pockets of green spaces.2 The area is known for its security, the availability of hotels for accommodation, and its easy access to transportation terminals.2 Overall, Cebu IT Park has cultivated a reputation as a modern, convenient, and dynamic urban center that never sleeps.2


Initial Reasons for Considering Investment


Several compelling reasons make investing in a condominium near or within Cebu IT Park attractive. The area's prime location offers unparalleled convenience, placing residents just minutes away from their workplaces, various cafes, well-equipped fitness centers, reputable hospitals, and lifestyle malls such as Ayala Malls Central Bloc.7 This proximity eliminates the burden of long commutes, allowing residents more time for personal pursuits and relaxation.7

Furthermore, condominiums in this area boast high rental potential. Cebu IT Park attracts a steady influx of professionals working in the numerous IT and BPO companies and expatriates and students seeking accommodation.7 This constant demand ensures that rental units in the vicinity are unlikely to remain vacant for long, making it a practical choice for investors looking to generate income.7 The walkable streets and the 24/7 lifestyle of Cebu IT Park are also significant draws, with round-the-clock convenience stores and nearby attractions like Sugbo Mercado and IT Park Garden Bloc enhancing the living experience.7

Over the years, Cebu IT Park has consistently been recognized as a top choice for both personal use and investment in Cebu.7 Its reputation as a leading business and lifestyle destination, coupled with its accessibility and integrated environment, makes it highly sought by professionals and real estate investors.7 The strong rental demand and the consistent appreciation in property values in Cebu IT Park further solidify its appeal as a prime investment location.7


Current Condominium Market in Cebu IT Park 📈


Average Condominium Prices and Recent Trends


The average prices for condominiums in and around Cebu IT Park exhibit a significant range, reflecting the variety of developers, unit types, and specific locations. Within Cebu IT Park, projects by Cebu Landmasters Inc. feature price ranges from approximately ₱13 million to ₱131 million.8 These often include larger units such as one-bedroom, two-bedroom, and penthouse options, with completion statuses varying from ready to move in to 1-2 years of completion.8 Avida Land, another prominent developer in the area, offers condominiums with a price range of ₱5 million to ₱12 million, typically including studio, one-bedroom, and two-bedroom units, with some being ready for occupancy while others are in progress.8

Venturing into areas near Cebu IT Park, such as La Guardia and Barangay Lahug, the price spectrum remains broad, ranging from around ₱4 million to ₱40 million.8 These areas offer a mix of unit types and completion statuses from various developers like Primeworld Land and Benedict Ventures.8 Notably, within Cebu IT Park, the high-end development 38 Park Avenue presents units ranging from approximately ₱6 million for a studio to over ₱131 million for a penthouse, showcasing the premium segment of the market.10 Even studio units in Avida developments within IT Park can be found starting from around ₱4.9 million.11

Looking at the broader Cebu City condominium market, the median list price in 2023 was approximately ₱7,672,370, indicating a wide array of pricing and unit types available across the city.12 Recent trends in the Cebu residential real estate market point towards a strong rebound. In the fourth quarter of 2024, residential prices in Cebu experienced a significant surge, signaling renewed growth after a more subdued previous quarter.13 This aligns with the national trend where property prices for new housing units in the Philippines grew by 6.7% year-on-year in Q4 2024. Notably, areas outside the National Capital Region (AONCR), which includes Cebu, saw an even more substantial increase of 9.3% in residential property prices during the same period.14 This upward trajectory suggests a positive outlook for property values in Cebu, including those in prime locations like Cebu IT Park.


Rental Yields


Rental yields for condominiums in the Philippines averaged around 5.12% in the first quarter of 2025.16 Specifically for Cebu City, the average gross rental yield was approximately 4.96% during the same period.16 However, it is worth noting that some sources suggest the potential for rental yields hovering between 6-8% for rental properties in the Philippines.17

Within the vicinity of Cebu IT Park, monthly rental rates for studio units typically range from ₱18,000 to ₱25,000, while one-bedroom units can command rents between ₱25,000 and ₱35,000.7 For larger two-bedroom condominiums in Cebu IT Park, monthly rents can range from PHP 50,000 to PHP 70,000, indicating a potentially lucrative rental market for investors with larger units.12 These figures suggest that while the overall average rental yield for Cebu City provides a general benchmark, specific properties within the high-demand area of Cebu IT Park can potentially achieve more attractive returns, especially for units that cater to the large working population in the area.


Occupancy Rates


The office occupancy rate within Cebu IT Park was notably high at 85% as of the first quarter of 2023.20 Historical data from 2012 indicated a very low vacancy rate of just 1.5% in Cebu IT Park.21 However, more recent data for Metro Cebu office space projected a higher vacancy rate of 21.3% in 2024, which could be influenced by new supply entering the market.22

Regarding condominium occupancy specifically, some opinions suggest that Cebu condos might not have exceptionally high occupancy rates compared to other major urban centers.23 However, the strong office occupancy in Cebu IT Park implies a significant number of working professionals in the area who would likely seek residential options nearby, suggesting a potentially robust demand for condominium rentals. Data on Airbnb occupancy in Cebu City showed an average rate of around 57%, which provides some insight into the short-term rental market, although the long-term occupancy rates for condominiums catering to the working population of IT Park may differ.24


Current Demand and Supply Dynamics


The real estate market in Cebu is currently experiencing rapid growth, characterized by increasing demand for properties, particularly in urban areas like Cebu City.25 This demand is especially strong for condominiums and apartments, which are popular among young professionals and expatriates who are drawn to the city for its economic opportunities and lifestyle.25 In 2023 alone, Cebu City welcomed approximately 10,500 new condominium units to its market, indicating a significant level of supply entering the sector.12

On the commercial front, over 90,000 square meters of new office space were expected to become available in Cebu during 2024, with a substantial portion of this located within prime areas like Cebu IT Park.26 In 2023, Cebu experienced its lowest office vacancy level in the past 24 months, at 19.4%, signaling a positive trend in absorption.26 The demand for office spaces in Cebu witnessed a notable resurgence in the latter half of 2023, primarily fueled by the expansion of Information Technology and Business Process Management companies within Cebu IT Park.26 This strong demand in both the residential and commercial sectors suggests a vibrant and dynamic real estate market in Cebu, with Cebu IT Park playing a central role.


Development and Infrastructure Boost in Cebu 🏗️


Major Infrastructure Projects


Cebu is currently benefiting from significant infrastructure development, which is poised to further enhance its attractiveness as an investment destination. One of the most notable recent projects is the Cebu-Cordova Link Expressway (CCLEX), which was completed in 2022.27 This 8.5-kilometer tollway, featuring a 650-meter cable-stayed bridge, provides a crucial third link between mainland Cebu and Mactan Island.27 CCLEX has significantly reduced travel time between Cebu City and the Mactan-Cebu International Airport by approximately 40 minutes.28 Beyond its functional benefits, CCLEX has quickly become a tourist attraction and a new iconic landmark in the region, contributing to the local tourism sector.29 Furthermore, the improved accessibility provided by CCLEX has led to a substantial increase in land values in areas like Cordova, making previously less accessible land more valuable for development.29

Another significant project underway is the Cebu Bus Rapid Transit (BRT) system.30 This initiative aims to provide Metro Cebu with an efficient, safe, and affordable urban transport system operating on dedicated routes and priority lanes.32 The project includes a 13.8 km-long corridor with 17 stations, a depot, and a terminal, with the goal of carrying over 160,000 passengers per day by 2025.32 Looking towards the future, a feasibility study is currently underway for a 65 km Cebu Subway Project.33 This ambitious underground railway is considered a long-term solution to address the increasing traffic congestion in Metro Cebu, with the first phase focusing on the central line connecting Danao, Cebu, and Talisay.33

To further support economic growth, the New Cebu International Container Port (NCICP) project is in development in Consolacion, Cebu.31 This P16.9-billion project, funded by the Export-Import Bank of Korea, aims to alleviate congestion at the existing Cebu Base Port, enhance cargo handling capabilities, and lower overall logistics costs, with a target completion date of November 2027.31 Additionally, the Mactan-Cebu International Airport underwent a significant expansion in 2018, increasing its gateway capacity to 12.5 million passengers annually, which further supports both tourism and business travel to the region.20 These major infrastructure projects collectively signify a strong commitment to improving connectivity and supporting economic development in Metro Cebu.


New IT Parks and Commercial Developments


The landscape of Cebu is continuously evolving with the development of new IT parks and commercial spaces, further solidifying its position as a major economic hub. In July 2024, the Philippine Economic Zone Authority (PEZA) signed the registration contract for a new IT park in Cebu City, known as the Taft East Gate IT Park, indicating ongoing expansion in the IT-BPM sector.36 Additionally, plans are in motion for the development of Mabolo IT Park and Robinsons SRP IT Park, which are expected to add a combined 80,000 square meters of office space to the Cebu IT landscape in the coming years.37

Within Cebu IT Park itself, Ayala Malls Central Bloc stands as a major retail establishment, offering a wide array of shopping, dining, and entertainment options for residents and workers in the area.2 Nearby, Cebu Exchange is recognized as a premium and green commercial development, emphasizing sustainability and providing modern office spaces.39 These commercial developments enhance the overall attractiveness and convenience of Cebu IT Park as a place to live and work.

Looking at residential developments within Cebu IT Park, the upcoming Wave Towers project is a significant addition to the skyline.40 This ₱6.4 billion, 42-story residential skyscraper is a joint venture between Cebu Landmasters Inc. and NTT UD Asia Pte. Ltd., a subsidiary of a major Japanese real estate company.41 Wave Towers is expected to feature 708 units, offering a mix of studio, one-bedroom, two-bedroom, and three-bedroom configurations, catering to a diverse range of residents seeking modern urban living in the heart of Cebu IT Park.41 The continuous development of both commercial and residential spaces within and around Cebu IT Park underscores the strong growth and investment potential of the area.


Tourism Development Initiatives


Tourism plays a crucial role in Cebu's economy, and several initiatives are underway to further enhance its appeal as a premier tourist destination.37 In the recent NEWT Awards 2024, Cebu Island secured third place in the Area Category, highlighting its growing popularity among international travelers, particularly in the Japanese market.43 This recognition underscores the success of campaigns like 'Love the Philippines' in boosting the country's tourism profile.43

To improve the visitor experience and promote sustainable tourism practices, the Cebu Provincial Government is introducing a new online booking system for key tourist sites in southern Cebu, including Moalboal, Badian, Alegria, and Oslob.44 This system aims to streamline bookings, enhance safety measures, and avoid overcrowding at popular attractions.44 Furthermore, the expansion of the Mactan-Cebu International Airport has significantly improved international connectivity, making it easier for tourists to access Cebu from various parts of the world.37 These initiatives, along with ongoing efforts to promote Cebu's diverse attractions beyond its beaches, such as its mountains, waterfalls, and historical sites, are expected to contribute to a more robust and sustainable tourism sector, which in turn supports the overall economy of Cebu.


Impact of Developments on Cebu IT Park Condominiums 🏘️


Enhanced Property Value through Improved Accessibility


The ongoing infrastructure developments in Cebu are expected to significantly enhance the property value of condominiums in Cebu IT Park by improving overall accessibility. The completion of the Cebu-Cordova Link Expressway (CCLEX) in 2022 has already provided a faster and more direct route to Mactan Island and the Mactan-Cebu International Airport.28 This improved connectivity makes Cebu IT Park a more attractive residential option for individuals who frequently travel through the airport for business or leisure, as well as those working on Mactan Island. The reduced travel time and increased convenience are key factors that can drive up the desirability and, consequently, the market value of properties in the area.

Furthermore, the development of the Cebu Bus Rapid Transit (BRT) system and the planned Cebu Subway Project will further enhance public transportation options within Metro Cebu.30 These projects will provide residents of Cebu IT Park with more efficient and convenient ways to access other parts of the city, including business districts, commercial centers, and residential areas. Improved public transport can reduce reliance on private vehicles, alleviate traffic congestion, and make living in Cebu IT Park more appealing to a broader range of people. Generally, improved infrastructure leads to increased demand for properties and a corresponding rise in property values.25 As Cebu becomes more interconnected and accessible, prime locations like Cebu IT Park are likely to see a continued appreciation in property values.


Influence of New Amenities on Attractiveness


The continuous addition of new amenities within and near Cebu IT Park significantly enhances its attractiveness as a residential location, which in turn positively influences the value of condominiums. The presence of major retail establishments like Ayala Malls Central Bloc provides residents with easy access to a wide variety of shopping, dining, and entertainment options.2 This convenience contributes to a higher quality of life and makes the area more appealing to potential residents. The existence of green spaces such as Garden Bloc offers valuable recreational areas for relaxation and leisure, further enhancing the lifestyle appeal of Cebu IT Park.2

Moreover, the presence of hotels like Seda within the IT Park adds to the area's overall convenience and appeal, particularly for visitors and potentially for short-term rentals of condominiums.2 The combination of commercial, recreational, and hospitality amenities creates a well-rounded and vibrant urban environment that is highly desirable for both living and working. As Cebu IT Park continues to develop and add more amenities, its attractiveness as a prime residential location is likely to increase, leading to higher demand and potentially higher property values for condominiums in the area.


Potential for Increased Demand from a Growing Workforce


The ongoing expansion of the IT-BPM sector in Cebu, coupled with the establishment of new IT parks in and around the city, is expected to drive a significant increase in the workforce.37 Cebu IT Park is already a major employment hub, home to numerous multinational companies and a large number of professionals working in the IT and BPO industries.2 As the sector continues to grow and more companies set up operations in Cebu, the demand for housing, particularly rental units, in close proximity to workplaces is expected to rise.7

Condominiums in Cebu IT Park are ideally positioned to cater to this growing workforce, offering a convenient and modern living option for professionals who work in the area. The desire to live close to work to reduce commute times and enjoy a better work-life balance makes condominiums within or near Cebu IT Park a preferred choice for many employees. This increased demand from a growing workforce is a key factor that can support both the rental market and the long-term appreciation of condominium values in Cebu IT Park.


Analyzing the Rental Market in Cebu IT Park 🏘️💰


Demographic Profile of the Working Population and Potential Tenants


The labor force in Cebu is predominantly engaged in industry and service activities, indicating a shift away from agriculture compared to the rest of the Philippines.49 Cebu IT Park stands as a significant employment hub, particularly for the thriving IT and BPO industries.2 This sector in Cebu employs a substantial number of professionals, with estimates exceeding 120,000.48 Many of these individuals, especially those in entry-level and mid-level positions, often seek rental accommodations close to their workplaces for convenience.

In addition to the local workforce, Cebu also attracts a growing number of expatriates who work in various industries or have chosen Cebu as their residence.13 These expatriates often prefer condominium living due to the security and amenities offered. Furthermore, employees working in other business districts such as Cebu Business Park, which is located nearby, may also consider living in Cebu IT Park due to its vibrant atmosphere and comprehensive facilities.51 Therefore, the primary demographic for condominium rentals in Cebu IT Park consists of young professionals working in the IT-BPM sector, along with a segment of expatriate workers and potentially some employees from neighboring business areas. This demographic generally seeks modern, well-located, and conveniently equipped living spaces.


Assessment of the Demand for Rental Properties


Cebu IT Park has consistently been recognized as a top choice for real estate investment, largely due to its strong rental potential.7 The demand for rental units in the vicinity of Cebu IT Park remains high throughout the year, indicating a robust and stable rental market.7 Anecdotal evidence suggests that even smaller condominium units in this area tend to experience low vacancy rates, highlighting the strong demand relative to the available supply.7

Broader trends in the Cebu real estate market also support a positive outlook for rentals. Cebu City is considered a prime location with significant demand for both residential and commercial properties.52 Overall, the rental market in the Philippines is experiencing rapid growth, driven by factors such as population increase, urbanization, and evolving lifestyle preferences, making it an attractive area for investors.53 Given Cebu IT Park's status as a major business and lifestyle hub, it is well-positioned to capitalize on this growing demand for rental properties.


Factors Contributing to a Strong Rental Market


Several key factors contribute to the strong rental market observed in Cebu IT Park. The most significant driver is the presence of a thriving IT-BPM industry within the park, which employs a large and relatively young workforce seeking convenient accommodation.2 The increasing urbanization and population growth in Cebu City also play a crucial role in fueling the demand for rental properties, as more people migrate to the city for work and other opportunities.13

The influx of young workers and expatriates moving to Cebu further bolsters the rental market, as these demographics often prefer renting, especially upon initial relocation.54 Cebu IT Park's convenient location, with its easy access to a wide range of amenities such as shopping malls, restaurants, and recreational facilities, as well as efficient transportation options, makes it a highly desirable place to live.7 Additionally, Cebu's growing economy and the increasing availability of job opportunities continue to attract more people to the city, thereby sustaining a strong demand for rental housing.25 All these factors combine to create a favorable environment for investors looking to rent out condominiums in Cebu IT Park.


Investment Value Proposition: Why Cebu IT Park? 🌟


Potential for Capital Appreciation


The real estate market in Cebu has demonstrated significant growth over the past decade, with property prices showing a consistent trend of appreciation.55 This growth is underpinned by a robust economy and increasing demand for properties in key urban areas. Specifically, property values in Cebu are on the rise, driven by ongoing improvements in infrastructure and a booming local economy.25 Looking ahead, forecasts indicate that property prices in Cebu are expected to continue their upward trajectory in 2025, suggesting a favorable environment for real estate investments.56

Within Cebu, IT Park stands out as a location with particularly strong potential for capital appreciation. Recent developments and its increasing appeal to both local and international tech companies are likely to drive a high level of price increase in this area in 2025.56 Furthermore, firsthand accounts from real estate professionals suggest that condominiums located near Cebu IT Park have already experienced value increases over time, indicating a historical trend of appreciation in this specific micro-market.7 The combination of overall market growth in Cebu and the specific dynamics of Cebu IT Park position condominiums in this area as having a strong potential for capital appreciation in the coming years.


Attractive Rental Income Potential


Investing in condominiums in Cebu IT Park presents an attractive opportunity for generating rental income due to the consistently high demand for accommodation in this area.7 The Philippines, in general, offers the potential for attractive rental yields compared to other markets.17 More specifically, data on rental rates for different unit types in and around IT Park, such as studio and one-bedroom units fetching between ₱18,000 to ₱35,000 per month, and two-bedroom units ranging from ₱50,000 to ₱70,000 monthly, indicate a profitable rental market.7

Real estate professionals working in the area have observed that some investors who purchased pre-selling condominiums years ago are now earning rental income that exceeds their original monthly mortgage payments, demonstrating the strong income-generating potential of these properties.7 The combination of high demand from a large working population and the achievable rental rates makes condominiums in Cebu IT Park a compelling option for investors seeking a steady stream of passive income and a positive return on their investment.


Long-Term Growth Prospects of the Area


Cebu's economy is recognized as one of the fastest-growing in the Philippines, providing a strong foundation for its real estate market.54 A significant contributor to this growth is the thriving IT-BPM sector, which is expected to continue its expansion in Cebu in the coming years.37 This sector is heavily concentrated in areas like Cebu IT Park, ensuring sustained demand for both commercial and residential properties in the vicinity.

Furthermore, the ongoing and planned infrastructure projects in Cebu, such as the BRT system and the subway project, will further enhance the area's attractiveness, connectivity, and overall quality of life.25 These improvements are likely to drive further economic growth and attract more businesses and residents to Cebu. As a result of these factors, Cebu is increasingly being recognized as a prime choice for real estate investments in the Philippines, with Cebu IT Park at the forefront of this growth.54 The long-term growth prospects of Cebu, particularly in its key economic sectors and infrastructure development, make investing in a condominium in Cebu IT Park a potentially valuable proposition for long-term capital appreciation and rental income.


Potential Risks and Challenges to Consider ⚠️


General Real Estate Investment Risks


Investing in real estate, including condominiums in Cebu IT Park, inherently involves certain risks. The real estate market can be unpredictable and is subject to fluctuations influenced by various economic factors, changes in government policies, and unforeseen events.50 Market volatility can impact both property values and rental demand. There is also a risk of experiencing negative cash flow if the rental income generated from a condominium does not sufficiently cover the associated expenses, such as mortgage payments, property taxes, and maintenance costs.57 Additionally, investors should be prepared for potential periods of vacancy where finding tenants for their property might take time, leading to a temporary loss of rental income.57 Over the long term, properties can also depreciate in value due to various factors, although this is less common in rapidly developing areas like Cebu IT Park.57 Therefore, potential investors should carefully consider these general real estate investment risks before making a decision.


Specific Challenges in the Cebu Property Market


While Cebu offers significant investment opportunities, there are also specific challenges within its property market that investors should be aware of. One notable factor is the geographic constraint of Cebu, where only a small percentage of the land is flat, leading to concentrated development in certain areas and potentially driving up property prices.58 This limited availability of prime land could lead to intense competition among developers and buyers. There is also a potential risk of oversupply in certain segments of the market if developers do not accurately gauge the demand for specific types of properties.58 Delays in government infrastructure projects, while not directly within Cebu IT Park, can indirectly impact the overall growth and attractiveness of the region.59 Furthermore, as with any rental market, there will be competition from other rental properties in the area, which could affect occupancy rates and rental prices.60 Finally, the Philippines, including Cebu, is prone to natural disasters such as typhoons and earthquakes, which could potentially impact property values and necessitate insurance coverage.50 Investors should take these specific challenges into account when considering investing in Cebu IT Park.


Foreign Ownership Regulations (if applicable)


For international investors considering purchasing condominiums in Cebu IT Park, it is important to understand the regulations regarding foreign ownership of real estate in the Philippines. While foreigners are generally allowed to own condominium units, there is a restriction that the total foreign ownership in any given condominium project cannot exceed 40% of the total number of units.60 This regulation is in place to ensure that Filipino citizens retain a majority stake in real estate developments within the country. Additionally, there are more stringent restrictions on foreign ownership of land in the Philippines; however, the focus of this report is on condominiums, which fall under a different set of rules.50 Foreign investors should ensure they are aware of and comply with these regulations when considering investing in a condominium in Cebu IT Park.


Conclusion and Investment Recommendations 📝


Summary of Key Findings


The analysis indicates that investing in a condominium in Cebu IT Park presents a compelling opportunity. The area benefits from strong demand driven by its thriving IT-BPM sector and status as a major employment hub. The potential for capital appreciation is significant, supported by Cebu's overall economic growth and the ongoing infrastructure and commercial developments in and around IT Park. Furthermore, the rental market in Cebu IT Park is robust, offering attractive rental income potential for investors. However, it is important to acknowledge the general risks associated with real estate investments, as well as specific challenges within the Cebu property market, such as geographic constraints and the potential for oversupply in certain segments. For foreign investors, understanding and complying with the regulations on foreign ownership of condominiums is crucial.


Overall Investment Outlook


Considering the historical growth, current vibrancy, and future development prospects of Cebu IT Park, the overall investment outlook for condominiums in this area appears positive. The convergence of a strong employment base, continuous infrastructure improvements, and a growing demand for modern urban living positions Cebu IT Park as a prime location for real estate investment. While potential risks and challenges exist, the fundamental drivers of growth and demand suggest that investing in a condominium here could yield significant returns in terms of both capital appreciation and rental income.


Actionable Recommendations for Potential Investors


Based on the analysis, potential investors considering a condominium in Cebu IT Park should take the following steps:


  • Conduct thorough due diligence on specific condominium projects and the track record of the developers involved. Investigate factors such as construction quality, amenities offered, and the financial stability of the developer.


  • Analyze the rental market for comparable properties within Cebu IT Park. Research current rental rates, occupancy levels, and the profile of potential tenants to assess the income-generating potential of the investment.


  • Carefully consider your investment goals and risk tolerance. Determine whether your primary objective is capital appreciation, rental income, or a combination of both, and assess your comfort level with the potential risks identified in this report.


  • Seek advice from reputable real estate professionals with expertise in the Cebu market. A local agent can provide valuable insights into specific projects, market trends, and legal considerations.


  • Consult with legal experts familiar with Philippine real estate law, particularly regarding foreign ownership regulations if you are an international investor.


  • Develop a sound financial plan that accounts for all costs associated with purchasing and maintaining a condominium, including mortgage payments, property taxes, association dues, and potential periods of vacancy.


  • Stay informed about the latest market trends, infrastructure developments, and economic news in Cebu to make well-informed decisions and adapt your investment strategy as needed.

By undertaking these steps, potential investors can maximize their chances of making a successful and profitable investment in the dynamic condominium market of Cebu IT Park.

Unit Type

Average Purchase Price (2024)

Estimated Monthly Rental Rate

Gross Rental Yield (Annual)

Studio

₱5,000,000 - ₱12,000,000

₱18,000 - ₱25,000

4.32% - 6.00%

1 Bedroom

₱12,000,000 - ₱19,000,000

₱25,000 - ₱35,000

3.16% - 3.50%

2 Bedroom

₱19,000,000 - ₱40,000,000

₱50,000 - ₱70,000

3.16% - 4.20%

Penthouse

₱40,000,000 - ₱131,000,000

Data not readily available

Data not readily available

Note: Purchase prices are based on ranges from snippets.8 Rental rates are based on ranges from snippets.7 Yields are approximate and do not account for expenses.

Project Name

Description

Current Status

Potential Impact on Accessibility to/from Cebu IT Park

Potential Impact on Property Value in Cebu IT Park

Cebu-Cordova Link Expressway (CCLEX)

8.5 km tollway connecting Cebu City and Mactan Island

Completed 2022

Faster access to Mactan Airport and Cordova

Positive

Cebu Bus Rapid Transit (BRT)

Urban transport system with dedicated lanes and stations

Underway

Improved public transport connectivity

Positive

Cebu Subway Project

65 km underground railway system

Feasibility Study

Significantly improved mass transit within Metro Cebu

Positive

New Cebu International Container Port (NCICP)

New port facility in Consolacion

In Development

Indirectly supports economy and logistics

Positive

Mactan-Cebu International Airport Expansion

Increased airport capacity

Completed 2018

Enhanced connectivity for travelers

Positive


Works cited

  1. en.wikipedia.org, accessed April 4, 2025, https://en.wikipedia.org/wiki/Cebu_IT_Park#:~:text=5%20External%20links-,History,to%20the%20island%20of%20Mactan.

  2. Cebu IT Park, Cebu City, Philippines - Reviews, Ratings, Tips and Why You Should Go - Wanderlog, accessed April 4, 2025, https://wanderlog.com/place/details/1130867/cebu-it-park

  3. Cebu IT Park - Wikipedia, accessed April 4, 2025, https://en.wikipedia.org/wiki/Cebu_IT_Park

  4. ProgreCebu: Cebu I.T. Park | The Freeman - Philippine Star, accessed April 4, 2025, https://www.philstar.com/the-freeman/cebu-business/2024/07/30/2374102/progrecebu-cebu-it-park

  5. Cebu IT Park | Entrance Fee, Opening Hours & More - ForeverVacation, accessed April 4, 2025, https://forevervacation.com/cebu/cebu-it-park

  6. Cebu IT Park: Parklets in Cebu I.T. Park Commercial, Cebu City, accessed April 4, 2025, https://cebu-it-park.wheree.com/

  7. Condos Near Cebu IT Park | Here's What You Need to Know - MYHOUSE.PH, accessed April 4, 2025, https://myhouse.ph/condos-near-cebu-it-park/

  8. Condos Near Cebu IT Park – Close to Business & Lifestyle Hubs - MYHOUSE.PH, accessed April 4, 2025, https://myhouse.ph/cebu-it-park-condos-for-sale/

  9. Pre-selling Condominiums in Cebu for Sale (2025 Update) - MYHOUSE.PH, accessed April 4, 2025, https://myhouse.ph/cebu-condominiums-for-sale/

  10. 38 Park Avenue Condo for Sale in IT Park Cebu City - CEBU-Real Estate Shop, accessed April 4, 2025, https://www.cebu-realestateshop.com/condo-for-sale/38-park-avenue-it-park

  11. Avida Towers Riala Condo for Sale IT Park Apas Cebu City - CEBU-Real Estate Shop, accessed April 4, 2025, https://www.cebu-realestateshop.com/condo-for-sale/avida

  12. 16 statistics for the Cebu real estate market in 2025 - Bamboo Routes, accessed April 4, 2025, https://bambooroutes.com/blogs/news/cebu-real-estate-market

  13. Cebu's Residential Prices Surge in Q4 2024 Amid Strong Housing Demand - Gabriel Realty & Brokerage, accessed April 4, 2025, https://gabrielrealtors.com/cebus-residential-prices-surge-in-q4-2024-amid-strong-housing-demand/

  14. Philippine housing market prices up by 6.7 percent in Q4 last year | The Freeman, accessed April 4, 2025, https://www.philstar.com/cebu-business/2025/04/01/2432660/philippine-housing-market-prices-67-percent-q4-last-year

  15. Residential prices rebound in Q4 2024 amid strong housing demand - SunStar, accessed April 4, 2025, https://www.sunstar.com.ph/cebu/residential-prices-rebound-in-q4-2024-amid-strong-housing-demand

  16. Gross rental yields in the Philippines: Manila and Cebu - Global Property Guide, accessed April 4, 2025, https://www.globalpropertyguide.com/asia/philippines/rental-yields

  17. Invest And Save P5M+ @ 38 Park Avenue Condo For Sale Cebu -1 Bedroom, accessed April 4, 2025, https://no1location.com/property/38-park-avenue-condo-1-bedroom-assume/

  18. FOR ASSUME: Studio with Balcony at City Clou Condominium - Gabriel Realty & Brokerage, accessed April 4, 2025, https://gabrielrealtors.com/property/city-clou-condominium-for-assume-condo/

  19. City Clou Tower B - Gabriel Realty & Brokerage, accessed April 4, 2025, https://gabrielrealtors.com/property/city-clou-tower-b/

  20. The Cebu Report - Santos Knight Frank, accessed April 4, 2025, https://santosknightfrank.com/wp-content/uploads/2023/08/The_Cebu_Report-2023.pdf

  21. Vacancy rate at low 2.8%: report, accessed April 4, 2025, https://www.sunstar.com.ph/more-articles/vacancy-rate-at-low-28-report

  22. Cebu office space vacancy seen to stay high — Colliers - BusinessWorld Online, accessed April 4, 2025, https://www.bworldonline.com/property/2024/03/26/584046/cebu-office-space-vacancy-seen-to-stay-high-colliers/

  23. Airbnb condo cebu still profitable? : r/phinvest - Reddit, accessed April 4, 2025, https://www.reddit.com/r/phinvest/comments/1cb3jq0/airbnb_condo_cebu_still_profitable/

  24. Cebu City, Airbnb Market Statistics & Data, The Philippines - Airbtics, accessed April 4, 2025, https://airbtics.com/annual-airbnb-revenue-in-cebu-city-philippines/

  25. Infrastructure Cebu Real Estate: An Insightful Property Value Analysis for Strategic Investments, accessed April 4, 2025, https://cebugrandrealty.com/infrastructure-cebu-real-estate-property-value-analysis-cebu-real-estate-investments-cebu/

  26. 90K sq.m new office supply - SunStar, accessed April 4, 2025, https://www.sunstar.com.ph/cebu/90k-sqm-new-office-supply

  27. Cebú Bridge | ACCIONA | Business as unusual, accessed April 4, 2025, https://www.acciona.com/projects/cebu-bridge

  28. Cebu Cordova Link Expressway | Arcadis, accessed April 4, 2025, https://www.arcadis.com/en-au/projects/asia/philippines/cclex

  29. CCLEX hastens post-COVID growth, recovery of Central Visayas region—study, accessed April 4, 2025, https://newsinfo.inquirer.net/1634186/cclex-hastens-post-covid-growth-recovery-of-central-visayas-region-study

  30. NEDA Board approves additional Infrastructure Flagship Project for Region 7, accessed April 4, 2025, https://nro7.neda.gov.ph/neda-board-approves-additional-infrastructure-flagship-project-for-region-7/

  31. DOTr signs 5 infra projects, including for new Cebu port - PortCalls Asia, accessed April 4, 2025, https://portcalls.com/dotr-signs-5-infra-projects-including-for-new-cebu-port/

  32. Improving the transport system in Cebu | AFD - Agence Française de Développement, accessed April 4, 2025, https://www.afd.fr/en/carte-des-projets/improving-transport-system-cebu

  33. Feasibility study for Cebu Subway Project underway - Southeast Asia Infrastructure, accessed April 4, 2025, https://southeastasiainfra.com/feasibility-study-for-cebu-subway-project-underway/

  34. Subway in Cebu? Feasibility under study | INQUIRER.net, accessed April 4, 2025, https://business.inquirer.net/502852/subway-in-cebu-feasibility-under-study

  35. Next subway could rise in Cebu - BusinessWorld Online, accessed April 4, 2025, https://www.bworldonline.com/economy/2025/01/23/648688/next-subway-could-rise-in-cebu/

  36. PEZA signs registration contract for new Cebu IT Park - Inquirer Business, accessed April 4, 2025, https://business.inquirer.net/468100/peza-signs-registration-contract-for-new-cebu-it-park

  37. Cebu's outlook for 2025: Poised for sustained growth, but energy capacity remains key, accessed April 4, 2025, https://businessmirror.com.ph/2025/01/28/cebus-outlook-for-2025-poised-for-sustained-growth-but-energy-capacity-remains-key/

  38. Cebu's Outlook For 2025: Poised For Sustained Growth, But Energy Capacity Remains Key, accessed April 4, 2025, https://www.thefinancialdistrict.com.ph/post/cebu-s-outlook-for-2025-poised-for-sustained-growth-but-energy-capacity-remains-key

  39. Cebu Exchange | Arthaland, accessed April 4, 2025, https://arthaland.com/properties/cebu-exchange

  40. Wave Towers: A New Skyscraper to Rise in Cebu IT Park - Gabriel Realty & Brokerage, accessed April 4, 2025, https://gabrielrealtors.com/wave-towers-a-new-skyscraper-to-rise-in-cebu-it-park/

  41. The Wave Towers: A New Skyscraper to Rise in Cebu IT Park, accessed April 4, 2025, https://cebudreaminvestment.com/property/the-wave-towers-a-new-skyscraper-to-rise-in-cebu-it-park/

  42. How Infrastructure is Fueling the Future of Cebu - Santos Knight Frank, accessed April 4, 2025, https://santosknightfrank.com/articles/how-infrastructure-is-fueling-the-future-of-cebu/

  43. CEBU RANKED THIRD IN THE AWARDS 2024 - Love the Philippines! Welcome to the DOT's Corporate Site - Department of Tourism, accessed April 4, 2025, https://beta.tourism.gov.ph/news_and_updates/cebu-ranked-third-in-the-awards-2024/

  44. How Will Cebu's New Online Booking System Revolutionize Tourism in the South? Enhancing Visitor Experience and Promoting Sustainable Travel Practices, accessed April 4, 2025, https://www.travelandtourworld.com/news/article/how-will-cebus-new-online-booking-system-revolutionize-tourism-in-the-south-enhancing-visitor-experience-and-promoting-sustainable-travel-practices/

  45. Cebu Real Estate Trends 2025: Exploring Top Property Hotspots and Market Opportunities, accessed April 4, 2025, https://cebugrandrealty.com/cebu-real-estate-trends-2025-exploring-top-property-hotspots-and-market-opportunities/

  46. Cebu-Cordova Link Expressway: Connecting Islands and Enhancing Travel Experience, accessed April 4, 2025, https://www.saferide.ph/cebu-cordova-link-expressway/

  47. Cebu Monorail Transit System Project | PPP Center, accessed April 4, 2025, https://ppp.gov.ph/ppp_projects/cebu-monorail-transit-system-project/

  48. The Future of Tech Jobs in Cebu, Philippines: An Analysis, accessed April 4, 2025, https://www.nucamp.co/blog/coding-bootcamp-philippines-iphl-the-future-of-tech-jobs-in-cebu-philippines-an-analysis

  49. The Cebu and Central Visayas economy under P-Noy, accessed April 4, 2025, https://cebudailynews.inquirer.net/83805/83805

  50. Buying Property in Cebu: The Ultimate Guide - InvestAsian, accessed April 4, 2025, https://www.investasian.com/property-investment/property-cebu/

  51. Cebu Residential Property Market Report [1H 2019] and What This Means For You, accessed April 4, 2025, https://filipinohomes.com/blog/cebu-residential-property-market-report-1h-2019-and-what-this-means-for-you/

  52. Cebu Rental Market Update: September 2024 - Philippine Property Hub, accessed April 4, 2025, https://philippinepropertyhub.com/cebu-rental-market-update/

  53. Philippine Rental Market Trends for Investors, accessed April 4, 2025, https://richestph.com/philippine-rental-market-trends-for-investors/

  54. A Beginner's Guide to Real Estate Investments in Cebu: Unlocking Lucrative Opportunities in a Booming Market, accessed April 4, 2025, https://cebugrandrealty.com/a-beginners-guide-to-real-estate-investments-in-cebuintroductioncebu-has-become-one-of-the-top-real-estate-investment-destinations-in-the-philippines-with-its-thriving-economy-strong-tour/

  55. A Decade of Growth: Tracing Property Price Trends in Cebu's Real Estate Market, accessed April 4, 2025, https://atarirealtycebu.com.ph/a-decade-of-growth-tracing-property-price-trends-in-cebus-real-estate-market-2/

  56. Yes, property prices will rise in Cebu in 2025 - Bamboo Routes, accessed April 4, 2025, https://bambooroutes.com/blogs/news/cebu-price-forecasts

  57. 8 Risks of Real Estate Investment (and How to Avoid Them) - Mandani Bay, accessed April 4, 2025, https://www.mandanibay.com/blog/risks-of-real-estate-investment-and-how-to-avoid-them/

  58. Geographic constraints drive Cebu's rising property prices | The Freeman - Philstar.com, accessed April 4, 2025, https://www.philstar.com/the-freeman/cebu-business/2025/01/30/2417890/geographic-constraints-drive-cebus-rising-property-prices

  59. Cebu real estate poised to thrive in 2024 - SunStar, accessed April 4, 2025, https://www.sunstar.com.ph/cebu/cebu-real-estate-poised-to-thrive-in-2024

  60. Is Buying a Condo a Good Investment in the Philippines? - Security Bank, accessed April 4, 2025, https://www.securitybank.com/blog/is-buying-a-condo-a-good-investment-in-the-philippines/

  61. Risks of Buying Property in the Philippines - InvestAsian, accessed April 4, 2025, https://www.investasian.com/property-investment/risks-philippines/

  62. Finding the Perfect Location in Cebu, accessed April 4, 2025, https://www.propertiescebu.com/blog/finding-the-perfect-spot-in-cebu

  63. Impact of Foreign Investment on Cebu's Real Estate Market, accessed April 4, 2025, https://cebugrandrealty.com/the-impact-of-foreign-investment-on-cebus-real-estate-market/

 
 
 
bottom of page