Cebu remains VisMin's property powerhouse despite slower economy - Colliers PH

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CEBU continues to lead the Visayas-Mindanao (VisMin) property market, with sustained demand across the office, residential and hospitality sectors despite a slower pace of national economic growth, according to the latest market report from Colliers Philippines.

Presenting the report, Joey Bondoc, Research Director of Colliers Philippines, said the country's economy remains on solid footing even as GDP growth eased to 2.8% in the first quarter of 2026, following 4.4% growth in 2025.

"The Philippine economy continues to grow," Bondoc said, noting that Central Visayas, the Davao Region and the Negros Island Region continue to expand at or above the national pace.

He said strong overseas Filipino worker (OFW) remittances, which reached US$36 billion in 2025, continue to support housing demand, with 17.1% of remittance-receiving households now allocating funds for real estate purchases—the highest level recorded by the Bangko Sentral ng Pilipinas.

For Cebu, Colliers sees infrastructure as a major catalyst for future growth, particularly the proposed Cebu-Bohol Bridge.

"Just imagine the property values that will be unlocked once that bridge... is completed," Bondoc said, adding that developers are already eyeing new investments in Bohol while airport upgrades and other transport projects are expected to further boost tourism and real estate values.

The report, which was presented during the Visayas On The Rise: Property Sustains Upside forum on Tuesday, July 1, at Sheraton Mactan Cebu Resort, also underscored Cebu's strength as the country's largest office market outside Metro Manila.

While the overall office vacancy rate stands at about 17%, business districts such as Cebu IT Park and Cebu Business Park continue to attract global outsourcing firms including Asurion, Wells Fargo and EY.

"These are not just companies that are offering back-office support," Bondoc said.

"These are captives... providing financial, software engineering and artificial intelligence support,” he added.

On the residential front, Colliers projects 45,000 new condominium units across VisMin from 2026 to 2029, with Cebu and Davao accounting for more than 60% of the pipeline.

Cebu projects remain healthy, with condominium developments already 86% sold and an inventory life of only about three years.

The hospitality sector is likewise expected to expand as tourism rebounds, with nearly 7,900 new hotel rooms planned across VisMin through 2029, reinforcing Cebu's position as one of the country's most attractive destinations for property investment.(MyTVCebu)