Manila VS. Cebu: Which City Is Best For Real Estate Investments?

What are the Differences Between Manila vs Cebu Real Estate?

1. Condominium projects
2. Township projects
3. Cost of living
4. Economic growth
5. Transportation and infrastructure 

Millennials, families, and real estate investors are all looking for the next best area for their homes and investments. And, with Cebu consistently topping the list of best islands in the world, a lot of them are setting their sights on real estate in this area.  

However, moving from the big city to a developing hub is always a difficult choice — especially when you’re looking for a new home that can provide for your needs, lifestyle, interests, and chosen profession. 

To help you weigh your options, we’ve prepared a closer look into Manila VS. Cebu real estate, and what they have to offer. Here is our in-depth comparison of these two major cities:  

 

Condominium projects

In last year’s property forecast analysis, interest in condominium projects remained high as OFW remittances hit a high of 31.4 billion U.S. dollars, and foreign companies continued to outsource their businesses to the country — driving developers to build more condominium units. 

Metro Manila gets the most attention in this aspect, as it is the main capital and largest business hub in the country — accounting for a third of our country’s GDP growth. 

However, with several foreign businesses relocating or establishing new offices in provinces such as Cebu, the number of condominium units for sale in the city has grown exponentially. They have landed closely behind Metro Manila in the past few years, with several more condo projects just beginning construction in Cebu.

 

Township projects

Likewise, the interests in township homes and projects are also ramping up — thanks to the access they offer their residents to the live-work-play lifestyle. 

In Metro Manila, several townships in Rockwell, Manila Bay Area, Makati, and more are continuing development, closely connected to existing malls and commercial centers. Some townships also offer proximity to the airport and business centers in Metro Manila. These projects are largely due to the demand for better work-life balance in the capital.

In Cebu City, township projects are also quickly catching on as a new trend. Areas such as Mactan and Lapu Lapu are especially popular for these projects, as they are filled with natural beauty and ample space for ambitious township designs. 

Real estate developers such as Pueblo de Oro are well on their way to completing its 27.4-hectare township in Lapu-Lapu City in Cebu, with plans to add commercial strips to provide more ease and convenience of living for residents. 

The prices of the properties in these township areas are on an upward trend and continue to climb as the real estate industry of the country recovers. Adding to this is the shift towards holistic suburban living, and a new breed of real estate investors. 

 

Cost of Living

The typical living expenses of a young professional in Metro Manila are significant. Statistics from 2021 show that the expenses of residents in Cebu are about 4.98% lower than those living in Metro Manila.

In terms of rent, the same trends are seen. Rent is much lower in Cebu, compared to rent prices in Metro Manila — about 47.99% lower! Based on these statistics, it is unsurprising that houses and condominiums for sale in Metro Manila are also much more expensive, compared to those for sale in Cebu. 

 

Economic Growth

The outlook for economic growth in Metro Manila is positive — The Asian Development Outlook (ADO) 2022 Supplement says that their economy can grow to at least 6.5% in 2022. 

However, Metro Manila still struggles with sharper-than-expected slowdowns in many industries, elevated global commodity prices, and tighter financial conditions compared to previous years. 

In comparison, Cebu’s economic growth is more promising. It has a great labor force, supplied by world-class educational institutions on the island. There is also an increase in remittance inflows from OFWs, private investment expansion from more BPOs and foreign companies, as well as large public infrastructure projects that will help the province’s steady growth. 

Even amid concerns of a BPO slowdown this 2022, the Cebu market remains resilient — thanks to offshore gaming, manufacturing, wholesale and retail trade, and financial firms choosing to locate in the area. This cements Cebu’s position as one of the most prosperous cities in the country as well as one of the top outsourcing cities in the Philippines. 

 

Transportation and Infrastructure

Traveling and commuting in Metro Manila is near-synonymous to traffic — the city is infamous for its complex infrastructure and congested roads.

In comparison, Cebu may have fewer roads and infrastructure systems, but they are highly efficient and provide easy access to its various cities and business centers. This is primarily due to Cebu’s rising business centers and tourism growth pushing for a more robust and far-reaching transportation system. 

While Cebu’s economic boom and developing infrastructure do mean traffic has increased in the area, it is not as congested as the roads of Metro Manila. And once these projects are completed, real estate prices are sure to rise, thanks to the advantages these infrastructures give to people. 

 

Key Takeaway

Between Manila VS. Cebu real estate, Cebu stands out as a clear winner for its ideal property rates (and projected valuations), growing economy, and developing infrastructure. These advantages are a must for those looking for a home that provides the ideal work-life balance and urban conveniences.

At Pueblo de Oro, we continue to contribute to Cebu’s status as a world-class lifestyle and residential destination in Asia through our master-planned communities and townships. In our developments, you’ll find affordable houses for sale in Cebu, which offer everything you need for the perfect work-life-play balance. Contact us today to learn more about how we can create your dream home here in Cebu.