Among the cities in the Philippines, Cebu has been on investors’ radar behind Manila. Investors find lots of opportunities in Cebu that can make them a profit. If you are an up-and-coming entrepreneur or a businessman wanting to expand your business elsewhere, we list down the reasons why you should invest in Cebu.
Location
Cebu is located right at the center of the Philippines which means it’s strategically not too far from other big Philippine cities such as Manila and Davao when you have essential businesses that you need to tend to in those locations. Nearby provinces such as Bohol and Negros are continuously developing as well so it would be great to set up headquarters in Cebu. Flights to other major cities are just less than 2 hours away. If you plan to travel internationally, Mactan-Cebu International Airport (hailed as the best airport in 2022 by Routes Online) has direct flights to major business hubs in Asia such as Singapore, Hong Kong, and Seoul, South Korea.
Traveling by sea is also advantageous here as the port of Cebu has the largest shipping hub in the Visayas. It is considered a freeport free from hefty taxes and daunting custom rules that normally apply to other ports. As a testament, around 80% of domestic and international shipping operators, operators, and shipping companies are located in Cebu. If you run a trading company, you would surely prefer unloading your products for shipment, repacking, sorting, and other processes here. Manufacturers and businessmen can easily buy imported materials and products for their businesses.
Growing Industries
Cebu has been booming economically since the 80s and it’s still continuing to develop now and in the future. With so many developments in Cebu, it’s hard not to notice its progress. Among the industries that have seen tremendous growth are tourism, BPO, and retail.
Tourism has got to be the most valuable industry in Cebu right now. Last 2022, around 2 million tourists were arriving on the island alone after COVID-19 restrictions were eased. The tourism industry quickly recovered from its losses in such a small amount of time. Cebu is a favorite destination for English learners since it is affordable and the tourist destinations are just within reach.
Cebuano’s are known for their fluent English speaking abilities that the Business Process Outsourcing (BPO) industry loves. New BPO companies sprung up here and there as Cebu’s economy continues to grow. These companies are commonly located in the business districts such as Cebu IT Park, Cebu Business Park, and Mactan Newtown.
The retail industry has also grown due to the influx of tourists going to Cebu. It quickly revitalized after the lockdowns like it was in pre-pandemic years. The mall culture in Cebu is quite big and you will see throngs of people shopping and dining in places such as SM City Cebu and Ayala Center Cebu to name a few.
A Large Number of Labor Force
As a businessman, you will not run out of talented employees to choose from as Cebu is thriving with talented people. The island of Cebu is home to a population of around 3 million people alone. In addition, people from other parts of the Philippines prefer to work in Cebu than in Manila as they find the island much more relaxing than the busy environment of the capital.
Job Fairs are also quite common all year round. If your company needs a certain talented individual, a quick job post on the internet will give you that answer and applications will be sent out immediately.
Booming Construction and Infrastructure Projects
Cebu has had major infrastructure projects in the last 20 years or so. Cebu-Cordova Link Expressway Bridge or commonly shortened to CCLEX bridge is the latest among them. The bridge has loosened up traffic going to the airport and given Cebu City residents a faster way of getting to the island of Mactan. By March 2023, the second runway of Mactan Cebu International Airport will finally be finished causing faster arrivals and departures of flights and more scheduled flights to be added. In the future, the Metro Cebu Expressway, Cebu Bus Rapid Transit (BRT), and possibly a Cebu Monorail will continuously solve Cebu’s heavy traffic.
In terms of construction from the private sector, commercial spaces, residential buildings, and office buildings are continuously being constructed by top developers in the country as demands continue to grow. Cebu’s region, Central Visayas, had 5,072 construction projects by the end of the second quarter of 2019 which earned the region the second most construction projects in 2019. Malls are also popping up in Cebu. GMall, the latest mall in Cebu, has recently opened last December 2022. The Ayala Group of Companies has also planned to build a new mall near the North Reclamation Area.
Real Estate
Because of the continuous growth Cebu is experiencing, it’s no shocker that Cebu’s real estate properties have high appraisal values and a lucrative return on investment in the future. Prices can go up fast as Cebu properties are in an upward trend and you might miss out on the opportunity to earn more if you delay investing in Cebu.
Considering the large number of tourists flocking to Cebu, global investors are also keen on investing in their properties, especially in condominiums, and starting their business in the business districts. What’s great about Cebu properties is that if you choose a rural or suburban property, the city is just a short drive away giving that mixture of urban and rural living.
