CEBU and the broader Philippine property market are set to enter a rebuilding phase in 2026, as developers reset strategies, refocus on affordability and seek to restore buyer and investor confidence after a year marked by natural disasters, infrastructure gaps and softer sentiment, industry leaders said.

Anthony Leuterio, founder of Filipino Homes, said 2026 would be a transition year rather than a breakout one, with growth driven by recalibrated products and gradual confidence-building following a difficult 2025.

“2026 will be about rebuilding — rebuilding the market, rebuilding products, rebuilding trust, and even rebuilding the image of the sector,” Leuterio said, adding that recovery would likely be steady, not explosive.

In Cebu, developers expect underlying demand to remain resilient, supported by population inflows, job creation and education-driven migration, despite lingering caution after repeated calamities disrupted buying decisions last year.

Harold See, president of Subdivision and Housing Developers Association Inc. -Central Visayas, said the local market should post steady growth in 2026, particularly in affordable and high-end housing, as Cebu City continues to attract students, young professionals and working families.

“There is still an influx of students coming into Cebu, with more universities opening, including national players,” See said. “Over time, these students stay on, find work, and eventually their families invest in property here.”

2025 weighed down by trust issues, scandals, and soft demand

Both industry leaders said 2025 was weighed down by confidence shocks. In Cebu, sales momentum improved early in the year but slowed after earthquakes, typhoons and flooding, prompting some households to divert funds toward rebuilding homes or supporting families in affected provinces.

Leuterio described the year as challenging, with growth likely limited to around 10 to 15 percent due to a combination of political noise, governance issues, and external shocks that dampened investor sentiment.

“Real estate is cyclical,” Leuterio said, noting the sector has gone through several downturns over the past two decades. “When confidence drops, investors start questioning whether demand, tourism and pricing can be sustained.”

Reset

As part of the reset, developers are increasingly shifting away from oversupplied high-end segments toward middle-income, economic and socialized housing, where structural demand remains strong. Leuterio estimated the country’s housing backlog at around six to seven million units and rising, pushing developers to introduce more competitively priced products.

He said condominium units priced between P2 million and P2.5 million have gained traction, particularly among overseas Filipino workers, who are seeking affordable, investment-ready housing.

“Around 80 to 90 percent of OFWs are willing to invest in this type of product. It’s affordable, and it addresses the lack of housing,” Leuterio said.

In Cebu, changing demographics and worsening traffic have also reshaped buyer preferences. See said younger couples and small families are now more open to condominium living, a notable shift from a decade ago when vertical housing was harder to sell in the city.

Outdated infra a key risk

Infrastructure constraints remain a key risk to the recovery. See said outdated drainage and water systems — many built in the 1980s and 1990s — have exacerbated flooding and highlighted the need for a Metro Cebu-wide drainage master plan. Developers have begun coordinating with local governments and regional bodies to push for a unified approach.

Leuterio echoed the need for stronger coordination between government and the private sector, particularly as climate risks increasingly affect project viability. “There has to be a body that connects government and the private sector,” he said, adding that better alignment would allow faster responses to emerging challenges.

Policy reforms could also support the rebuilding phase. See welcomed proposals to raise price ceilings for socialized and affordable housing, which could lower tax burdens for buyers and enable developers to expand supply. Leuterio said greater private sector participation and improved access to financing are essential if the housing backlog is to be addressed.

Looking ahead, Cebu developers expect heightened competition in 2026 to benefit buyers, with more projects offering energy-efficient designs, solar power and smart-home features, alongside greater transparency on flood history and site risks.

“If we solve water, drainage and other core infrastructure issues, Cebu’s growth story remains intact,” See said. / KOC