There is no denying the fact that the trend in local real estate development today is still going up. And the effects are definitely expanding not just in Metro Manila, but in major cities all over the Philippines.
Wong+Bernstein Group (W+B) executive director and corporate turnaround advisor Eric Soriano even observed how newbie developers and builders go head to head with established, more recognizable brands when it comes to gaining majority shares in regional real estate markets outside Luzon. He even noted residential home seekers look beyond the developer name when it comes to seeking their next real estate investment.
Earlier on, we recommended the best locations in Metro Manila for you to make your real estate investment. But if you’re on the hunt for a property to invest in Visayas or Mindanao, we decided to expand our coverage with this brand new list on where to look outside Luzon for your next real estate investment.
1. Cebu City
Rental yield: 4.91%
Accessibility: Located in the Central Visayas, Cebu can be accessed via air, land, or sea transport. Cebu also has an international airport (Mactan-Cebu International Airport), attracting tourists from all over the world. The city also has a color-coded Public Utility Jeepney (PUJ) system, where you can go from one point to another by taking the colored jeepney offering that specific route. You can also rent a car or hail a taxi.
Neighborhood quality: Urban planning is still suburban style, with residential subdivisions and house and lots located in cul-de-sacs or areas a bit away from commercial areas. You still have to commute to go to certain points of interest like shopping malls, entertainment complexes, and even historical attractions.
Economic potential: The city of Cebu is experiencing a continuous economic boom, thanks to its many beautiful islands, white sand beaches, luxury hotel and resorts, diving locations and heritage sites. But as the real estate market of Cebu continues to grow, specifically the condominium units market, we will be expecting mixed-use developments that will embed residential projects within urban landscapes, like the Cebu IT Park.
2. Iloilo City
Rental Yield: 3.38%
Accessibility: Iloilo City is a coastal city located on Panay island. Jeepneys are the main transportation mode in main roads, although you can take a metered taxi. The tricycle is used to commute to secondary roads. The large “passads” and buses are used to travel from the city to the rest of the Iloilo province and Panay Island. If you want to travel outside the city, you can do so at any of the five major integrated transport terminals bordering the perimeters of the city, through a railroad system connecting to nearby Roxas City, an international airport and a premier seaport.
Neighborhood Quality: The urban planning and architecture in Iloilo is a mix of Spanish-era and modern influences. Majority of the districts have common spaces called plazas, which are surrounded by several commercial establishments and facilities. However, real estate development has added a lot of office and retail real estate in the city. Vertical residences are also being developed near or within commercial areas and business parks.
Economic Potential: Iloilo City is the premier urban hub in the Western Visayas region. Trade, banking, commerce, finance, technology, medical tourism, hospitality, real estate, and tourism businesses are some of the businesses that have set shop in this Next-Wave city. In the last few years, information technology and business process outsourcing are thriving in Iloilo, spurring more employment, improved public facilities and utilities, and increase in city GDP or gross domestic product.
Rental Yield: 9.36%
Accessibility: Another coastal city, Bacolod can be accessed via land, sea, and air. It has an international airport in Silay; Banago Wharf and BREDCO Port commercial and industrial seaports; and Lacson Street to the north, Araneta Street to the south to travel from Bacolod to any point in the Philippines by bus or roll-on, roll-off (RORO) transport. You can take a jeepney, bus, or taxi. Tricycles are usually available for secondary roads or passageways. If you need to go to the nearby town, there are public utility vans that can take you there.
Neighborhood Quality: Bacolod makes you feel as if you’re closer to the community, thanks to the number of Spanish-era buildings, ruins and houses. The city’s fast-growing economy also opened Bacolod to modern infrastructure in the form of malls, art museums, sports complex, and business parks. Lacson Street is also seen as the hip side of Bacolod, courtesy of the street art mural and graffiti, restaurants and nightlife activity in the area.
Economic Potential: Bacolod is ranked third of the country’s “Next Wave Cities,” with several established BPO companies operating in the city. The Departments of Science and Technology (DOST) also recognized Bacolod as a “center of excellence” for its IT-business process management operations. The Bacolod Metropolitan Area, which includes Bacolod, Silay, and Talisay cities, is also known as one of the country’s financial and industrial centers. The city nonetheless still relies on agriculture and is a major producer of sugarcane, coconut, banana, corn, and vegetables.
4. Cagayan de Oro
Rental Yield: 1.31%
Accessibility: Cagayan de Oro is considered the gateway of Mindanao, so it’s not surprising that accessibility is quite high. The city is accessible via land, air and water transportation, and the metro’s main public transportation system involves fixed-route jeepneys, metered taxis, and “motorelas.” Tourists can also explore the Cagayan de Oro river by taking a water taxi.
Neighborhood Quality: The local government of Cagayan de Oro has been very diligent with its efforts to make the city a most sought-after tourist destination, so you’d really feel the community vibe even in off-peak season. You can cool off at any of the city’s shopping malls, museums, or parks in the city and have barbecue or grilled food at a neighborhood plaza in the evening. Cagayan de Oro’s tourist hotspots and activities are under an hour from the city proper, so you can take a quick, relaxing getaway if you need to.
Economic Potential: Cagayan de Oro’s role as both a melting pot and a gateway has helped the city to become one of the most progressive in the country. It is known as the regional center and logistics and business hub of Northern Mindanao, with many international and established industry, commerce, trade, service and tourism companies operating in the city. Many local to known real estate firms have built high-rise and mid-rise hotels, condominiums, buildings, and BPO parks, signs of a very healthy commercial and residential real estate market.
Rental Yield: 3.79%
Accessibility: Davao as a coastal city is accessible by land, air, and sea. It also has a variety of public transportation options ranging from multicabs, jeepneys, tricycles, buses and taxis. The multicabs and jeepneys are colored specific to the routes they take. Some people commute in the mountainous areas via “habal-habal,” or a makeshift motorcycle designed to carry more than one passenger. The bus network is pretty wide, as some operators can take you as far as Metro Manila and other major cities via RORO and to several points in Mindanao.
Neighborhood Quality: Davao not only rivals Metro Manila in terms of population and economic growth but also in terms of diversity and richness in culture. From infrastructure alone, you can see many Spanish, Chinese, Japanese, and modern American influences. The city also has an active nightlife and culinary scene, attracting local and foreign tourists. It’s proximity to top vacation hotspots like Mount Apo and Samal Island makes the city a perfect place to secure a vacation condo for sale.
Economic Potential: Although agriculture is Davao City’s primary economic contributor, the chocolate sector is quickly gaining ground, especially in the international market. Finance and retail are also particularly strong economic sectors in the city. The real estate industry, on the other hand, is growing quite fast thanks to a number of new players and mixed-use developments from market leaders.
Interested in investing on properties in Visayas or Mindanao? Ask us for more recommendations the Avida Land website.