According to a Cebuano developer, owning property in Cebu’s booming southern tourism destinations is a good source of passive income with many locals.
Ramiro Espina, vice-president for sales and marketing for a leading local property firm, said that many foreign tourists and balikbayans have been eyeing properties in Southern Cebu because of its rising tourism potential to cater to the demand of beachfront vacation homes, rentals and investments markets.
“Due to the rising trend of tourism in that area of Cebu, demand for vacation homes has gone up. Owning a property in that area and having it rented is a good form of investment,” said Espina.
“Based on marketing our villas, we see there is also a demand for smaller units. Foreigners in the south have problems with the available rental units there because some don’t prefer big units,” said Espina.
A condo unit at Tropical Flats can yield six to 10 percent per annum if leased. Another option is reselling the unit after five years, which can yield an average return of 30 to 40 percent.
The company is also eyeing the lucrative condotel business in Cebu recognizing the emerging demand for this kind of real estate project.
“We are going into that direction, considering that the tourism arrivals and demand for accommodation are consistently uprising,” said Espina.