A lot is going on in Cagayan de Oro, a bustling city in Northern Mindanao. Due to its growing economy, strategic location, and favorable business climate, it’s become a hub for real estate investment.
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Why you should invest in the Cagayan de Oro property market
A booming economy
Cagayan de Oro is one of the fastest-growing cities in the country, driven by manufacturing, agribusiness, and tourism. GDP growth has consistently outpaced the national average, making it a great place to do business and invest.
It has a strategic location
Cagayan de Oro is a strategic gateway to other parts of Mindanao and the Visayas because of its location. Cagayan-Iligan Corridor, a major economic zone that spans several cities in Northern Mindanao, runs through the city. As a result, businesses and investors can easily access a large market, allowing them to grow and expand.
It has a favorable business climate
Cagayan de Oro’s real estate market is booming thanks to the city’s rapid growth. There have been a lot of residential and commercial developments popping up in the city over the years. Investors looking for high returns will find this a good environment.
The business climate in Cagayan de Oro is great, with a lot of incentives and initiatives to attract investors. A rise in foreign and local investments has been attributed to the city’s active promotion of its investment potential. Furthermore, the city has a stable political climate and a relatively low crime rate, so it’s a safe place to do business.
It offers good quality of life.
There’s a thriving arts and culture scene, excellent educational institutions, and lots of recreational opportunities in Cagayan de Oro. There are many modern amenities and services available to the city’s residents.
Statistics highlighting the demand for property in Cagayan de Oro
- The Housing and Land Use Regulatory Board (HLURB) says demand for housing in Cagayan de Oro has been high for a while. There were 1,338 housing units sold in the city in 2019, up 7.2% from 2018.
- In 2020, Cagayan de Oro’s residential market remained strong despite challenges caused by the COVID-19 pandemic, according to Colliers International. According to Colliers, the city’s residential sector continued to attract buyers and investors, with a 70% take-up rate.
- Among cities in Northern Mindanao, Cagayan de Oro had the highest increase in construction projects in the second quarter of 2021, according to the Philippine Statistics Authority. Construction projects in the city totaled PHP 2.6 billion, or 62.6% of the region’s total.
- Cagayan de Oro is one of the top ten cities in the Philippines with the fastest property value growth, according to Property24. Property values in the city grew 7.1% in 2020, outpacing the national average of 3.9%.
A comparison of real estate markets in the Philippines
Real estate in Cagayan de Oro City is one of the most affordable in the country. It’s generally cheaper than other major cities like Metro Manila, Cebu City, and Davao City.
According to a report by Lamudi Philippines, the average price of a 2-bedroom house in Cagayan de Oro City in 2021 was P2.8 million, compared to P5.6 million in Metro Manila and P4.3 million in Cebu City. Similarly, the average price of a 2-bedroom condominium unit in Cagayan de Oro City was P4.1 million, compared to P8.8 million in Metro Manila and P6.7 million in Cebu City.
The average price per square meter of commercial land in Cagayan de Oro City is around P25,000, which is significantly lower than in Metro Manila, where the average price per square meter is around P190,000.
Rental rates for both residential and commercial properties in Cagayan de Oro City are generally lower than in other major urban areas in the country. According to a report by ZipMatch, the average monthly rent for a 1-bedroom apartment in Cagayan de Oro City is around P10,000, compared to P20,000 in Metro Manila and P15,000 in Cebu City.
Cagayan de Oro City’s affordable real estate prices make it a great choice for both local and foreign investors looking to invest in Philippine real estate. In real estate, the city offers great potential for long-term growth and profitability thanks to a growing economy and a favorable business climate.
Property investment targets in Cagayan de Oro
The city of Cagayan de Oro has several prime property investment spots. Location, accessibility, growth potential, and strategic location make them appealing locations.
Centrio Business District
This area is located in the heart of the city and is considered the central business district of Cagayan de Oro. It is home to several commercial establishments, office buildings, and residential developments. The Centrio Mall, a premier shopping destination, is also located here.
Located on the higher elevation of the city, Uptown is a rapidly developing area that offers stunning views of Cagayan de Oro City. It is home to several residential developments, hotels, and commercial establishments.
This gated community is one of the most exclusive residential areas in Cagayan de Oro City. It offers a wide range of residential properties, including townhouses, condominiums, and single-family homes.
Pueblo de Oro
This master-planned community is located just outside the city proper and offers a mix of residential, commercial, and industrial developments. It is also home to a golf course and country club.
This area is located on a hill overlooking the city and offers a quiet and peaceful residential setting. It is also in close proximity to several schools and universities, making it an attractive location for families.
Cagayan de Oro City is a fast-growing city in the Philippines that offers a lot of investment opportunities. Its strategic location, booming economy, and attractive lifestyle make it a great place to buy a home. There are a lot of reasons to invest in this city, starting with the thriving economy and growing population. Besides that, Cagayan de Oro has a low cost of living and good infrastructure, so it’s a great place to live and do business.
Cagayan de Oro real estate investing also offers tax advantages, rental income, and portfolio diversification. Investment opportunities range from apartments and condos to commercial and industrial properties, so investors have lots of options.
For those looking for long-term capital growth and rental income, buying property in Cagayan de Oro City could be a smart move. Cagayan de Oro is an ideal property investment destination because of its attractive location, growing economy, and high-quality lifestyle.