Cebu emerges as key market in real estate's critical phase

The Philippine real estate sector is heading into 2026 facing a familiar mix of headwinds and opportunities, with Cebu emerging as one of the country's most resilient growth markets, according to the latest outlook from Colliers.

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“2026 will test the resilience of Philippine real estate players,” said Joey Roi Bondoc, Director and Head of Research at Colliers. FILE PHOTO

The property consultancy firm said the industry is entering a "critical phase" where adaptability, diversification, and investments in emerging regional hubs-particularly Cebu—will define which developers stay ahead in an increasingly competitive landscape.

Colliers expects the national office market to gradually recover next year, supported by improving take-up from IT-BPM firms and traditional occupiers.

While new supply across Metro Manila is forecast to slow to 350,000 square meters annually from 2026 to 2028, Cebu is poised to capture a bigger share of expansion as companies push business continuity strategies and diversify outside the capital.

Flexible workspace operators are expanding most aggressively in Cebu, Pampanga, and Iloilo—an unmistakable sign, Colliers said, that decentralization is accelerating. This trend is expected to sustain demand for prime office developments in Cebu's business districts, where developers are rolling out tech-enabled workspaces and hybrid-ready designs.