Best Cities for Condo Investments Near Key Travel Destinations in the Philippines

It’s time to dive into real estate investment!

Investing in condominiums in the Philippines has become an attractive option for both local and international investors, driven by the country’s growing economy, urbanization, and robust real estate market. 

The appeal of condo investing lies in several key factors including strong economic growth, rental yield potential, capital appreciation, low entry barriers and the continuing infrastructure growth in main cities.

The Philippines boasts a growing middle class, a young and dynamic workforce, and an expanding consumer market, all contributing to increased demand for housing, particularly in urban centers like Metro Manila, Cebu, and Davao.

Moreover, real properties in prime locations offer strong rental yields, appealing to investors seeking passive income. The demand for rental properties is fueled by both local professionals and expats.

It’s also worth noting that as the Philippines continues to urbanize, real estate values in key cities have historically shown steady appreciation, making condos an attractive long-term investment.

Further, compared to other real estate assets like landed properties, condos typically have lower upfront costs and more flexible financing options, making them accessible to a wider range of investors.

Finally, ongoing government investments in infrastructure, like the “Build, Build, Build” program, improve connectivity and accessibility, driving further demand for properties in emerging growth areas.

Here are the cities we’ll discuss:

1. Tagaytay City
2. Baguio City
3. Cebu City
4. Davao City

Read more to learn all about it!

Best Cities for Condo Investments Near Tourist Destinations

You have a lot of options for places to invest in condos in the Philippines, from the mountainous region in the North to the beach destinations in the South. A few cities, however, stand out.

Tagaytay: The Cool Getaway Near Metro Manila

Tagaytay, a city in the province of Cavite, is a popular tourist destination, known for its scenic views, cooler climate, and proximity to Taal Volcano. Located just a short drive from Metro Manila, it offers a refreshing escape from the hustle and bustle of the city.

Tourist Appeal

Tagaytay is famous for its stunning panoramic views of Taal Volcano and its surrounding lake. The picturesque landscape makes it a prime spot for sightseeing, dining, and photography. Visitors can also enjoy boat rides to Taal Island or hike to the crater for a more adventurous experience.

Situated at a higher elevation, Tagaytay enjoys a cooler, more temperate climate compared to most other parts of the Philippines. This makes it an attractive year-round destination for those looking to escape the heat, especially for weekend getaways.

Tagaytay is a favored weekend retreat for both locals and foreigners seeking relaxation, natural beauty, and outdoor activities. Its proximity to Metro Manila makes it easily accessible, drawing crowds for family outings, romantic escapes, and day trips.

Together, these factors make Tagaytay a year-round tourist hotspot, with strong appeal for real estate investors looking to capitalize on the area's growing demand for accommodations and leisure activities.

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Real Estate Potential

Tagaytay has become an increasingly attractive location for real estate investment, particularly in the condo market for its scenic views, cooler climate, and proximity to Metro Manila. Here's a brief overview of the current market trends in Tagaytay:

As of 2024, condo prices in Tagaytay generally range from PHP 5,000,000 to PHP 11,000,000 for mid-range to high-end developments, depending on location, amenities, and view (especially those offering views of Taal Volcano) 

Another compelling reason to invest in a Tagaytay condo is the consistent appreciation of condo prices in Cavite, with an annual growth rate at 12.4% as of 2024 data.. The area's popularity as a weekend destination and its continued infrastructure development (e.g., improved roads and access to Metro Manila) are contributing to this upward trend in property values.

Additionally, rental yields for condos are particularly attractive for investors. Depending on the property’s location and amenities, annual rental yields typically range from 0.99% to 1.25%, which is higher than many urban centers in the Philippines. Properties near popular tourist areas or with views of Taal Volcano tend to command higher rental rates.

Finally, the demand for short-term rentals in Tagaytay is on the rise, fueled by the city's popularity as a weekend getaway for locals and foreigners. With more tourists seeking short-term accommodation options, booking apps have become popular for vacation homes and short stays. 

Properties in prime locations with scenic views or easy access to Taal Volcano are in high demand for vacation rentals, especially during peak seasons (holidays, weekends, and festivals).

The combination of appreciating property values and strong rental income potential makes Tagaytay a promising investment destination.

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Investment Considerations

Investing in Tagaytay offers several attractive opportunities, especially for those seeking both short-term rental income and long-term capital appreciation. However, as with any investment, there are pros and cons to consider. Here’s a breakdown:

• Strong Demand for Vacation Rentals: Tagaytay is a popular weekend destination for l tourists due to its cooler climate, scenic views of Taal Volcano, and proximity to Metro Manila (about a 1.5- to 2-hour drive). This leads to high demand for short-term rentals on platforms like Airbnb and for vacation homes, making it an attractive option for investors seeking rental income.
• Appreciating Property Values: Over the years, real estate in Tagaytay has seen steady appreciation due to increasing development and infrastructure improvements. As more people seek weekend escapes from the city, property values continue to rise, making it a good option for capital gains over time.
• Higher Rental Yields: With its status as a tourist destination, condos in Tagaytay can yield attractive returns, particularly from short-term rental operations. The area's appeal for vacationers drives strong rental yields, often ranging between 0.99% to 1.25%.
• Appealing for Second Homes and Retirement: The cooler climate and relaxed atmosphere make Tagaytay a popular choice for those looking to invest in a second home or retirement property. The area offers low maintenance living with access to nature, making it attractive for long-term buyers.
• Proximity to Metro Manila:  Tagaytay’s proximity to Metro Manila makes it a convenient weekend getaway destination. This has encouraged infrastructure development, including new roads and transport links, which further boosts property values.

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Key Locations within Tagaytay for Condo Investments

Where to hunt for condos in Tagaytay? Here are a few recommendations:

1. Sky Ranch Area 

One of the most popular tourist spots, Sky Ranch is home to the Sky Eye Ferris wheel and offers stunning views of Taal Volcano. Properties around Sky Ranch are in high demand for short-term rentals and vacation homes, making it a prime area for condo investments.

2. Tagaytay Ridge 

The ridge offers some of the best views of Taal Volcano and Lake Taal. This area is highly sought after for second homes, weekend getaways, and short-term rentals. Condos in this area tend to have higher rental yields and strong appreciation potential, as it is considered the heart of Tagaytay's tourism.

3. Antonio’s Area

Known for its high-end restaurants and proximity to the Taal Volcano view, this area is ideal for premium condo investments. The demand is driven by affluent weekend travelers and tourists seeking a more luxurious experience. Properties here can cater to the upper-end of the market, offering a higher potential for capital appreciation.

4. Iruhin

A more residential area with a mix of local and vacation homes, Iruhin is a quieter part of Tagaytay. It offers a balance between accessibility to tourist spots and more serene living conditions. This area is becoming increasingly popular with families and retirees, making it a good option for long-term rental investments.

5. Mendez and Alfonso (Outskirts of Tagaytay)

These areas, on the outskirts of Tagaytay, are becoming more accessible due to improved infrastructure. Properties here may offer more affordable entry points compared to prime areas like Tagaytay Ridge, but they still benefit from proximity to the tourist zone, making them good options for medium-to-long-term capital growth.

Overall, investing in a Tagaytay condo offers strong potential for rental yields, property appreciation, and the benefits of being close to a major tourist hub. While there are seasonal fluctuations and challenges such as competition and maintenance costs, the overall appeal of Tagaytay as a weekend getaway for locals and international tourists remains strong. 

For condo investors, prime locations provide the best opportunities for both short-term rental income and long-term value growth.

Baguio City: The Summer Capital of the Philippines

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Baguio City, known as the "Summer Capital of the Philippines," is famous for its cool climate due to its high elevation (about 1,540 meters above sea level), providing a refreshing escape from the tropical heat of lowland areas. 

Tourist Appeal

Baguio City, is surrounded by lush pine forests, which contribute to its crisp, invigorating air and natural beauty. Baguio is also rich in cultural festivals, such as the Panagbenga Festival, a vibrant flower festival held annually, drawing thousands of visitors to witness its grand floats and street dancing.

Additionally, Baguio boasts several historical landmarks like Burnham Park, the Mines View Park, and The Mansion, reflecting its colonial past and cultural heritage. These attractions, along with its proximity to major urban areas, make Baguio a popular destination for local tourists seeking a getaway and expats looking for a cooler climate and a relaxed lifestyle. 

The city’s appeal to long-term residents is fueled by its affordable living costs, serene environment, and thriving local community, making it an attractive option for both retirees and those seeking an alternative to busy urban centers.

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Real Estate Potential

The condo market in Baguio has shown strong growth in recent years, driven by its reputation as a tourist hub and an appealing destination for both vacationers and long-term residents. The elevated location of the city, cool climate, and natural beauty make it a year-round attraction. 

As of 2024, condo prices in Baguio typically range from PHP 4,000,000 to PHP 13,000,000 for mid-range developments, though premium units with views of the mountains or parks can cost more. The market has seen steady appreciation as the city's real estate continues to gain popularity among investors looking for vacation homes or second properties.

Rental yields in Baguio condos are particularly strong due to its status as both a tourist destination and a student city, with an annual rental yield of 2%. 

Properties in the city can command premium rents during festivals like Panagbenga when tourist demand peaks, as well as during the school year when Baguio’s universities and colleges attract students, parents, and faculty for short to medium-term stays.

Baguio's unique combination of cultural festivals and academic institutions creates a high demand for transient rentals. The Panagbenga Festival and other cultural events bring a surge of visitors every year, requiring additional accommodations. 

Furthermore, Baguio is home to a number of universities and colleges (e.g., University of the Philippines Baguio, Saint Louis University), attracting students, faculty, and visiting relatives, creating a steady market for short-term stays and student housing.

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Investment Considerations

Investing in a condo in the City of Pines offers a lot of potential primarily because of Baguio’s year-round demand for real estate accommodations. Even during the off-peak season or the rainy months of June to November, there is a market for renters among students, faculty and school staff. 

Here are some key areas for condo investments in Baguio:

Central Business District

Central Location: Session Road, and its nearby areas, is the heart of Baguio's commercial and business activity, making it an ideal location for condos targeting both tourists and long-term residents. Its central location means easy access to shopping, dining, and entertainment, as well as proximity to government offices and key landmarks like Burnham Park.

High Demand: Given its popularity among tourists and business travelers, condos in this area tend to have high occupancy rates, especially for short-term rentals. It's also an attractive spot for both visitors and residents for its selection of restaurants and cafes.

Camp John Hay area

Nature and Leisure Appeal: Known for its cooler climate, scenic views, and lush pine forests, Camp John Hay is a popular destination for tourists seeking nature-based activities and relaxation. The area is also home to leisure facilities such as golf courses, hotels, and recreational parks, making it a desirable place for vacation homes and short-term rental properties.

Exclusive Market: Real properties here appeal to higher-end buyers or investors looking to cater to more affluent tourists or expats, offering privacy and luxury amenities.

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Burnham Park and around

Proximity to Nature: Burnham Park is a major tourist draw due to its recreational offerings, including boating, biking, and picnicking. Condos in this area cater to tourists who want easy access to outdoor activities while still being near the city’s commercial districts.

Stable Demand: Due to its popularity as a central attraction, condos near Burnham Park benefit from consistent tourist foot traffic, as well as year-round demand for both short-term stays and long-term residents.

UP Baguio and University Belt area

Student Population: Areas around the University of the Philippines Baguio and other academic institutions (e.g., Saint Louis University, University of Baguio) have high demand for student housing, as well as accommodations for visiting parents and relatives. Condos in this area offer easy access to campuses and cater to both students and faculty, making it an attractive option for long-term rental investors.

Academic and Residential Balance: The combination of student housing and faculty rentals creates steady demand throughout the year, especially during the academic semesters.

An investment consideration unique to Baguio City is the year-round demand for accommodations. 

Baguio is a popular destination for tourists year-round, driven by its cool climate, public events, and proximity to nature. Transient rentals are especially lucrative during peak tourism seasons, such as summer, Christmas, and festival times. Areas like Session Road and Camp John Hay see spikes in visitor traffic, leading to higher rental yields during these periods.

Moreover, academic institutions in the city create a consistent year-round demand for student accommodations, particularly in areas near schools like the CBD. During the school year, families and students also drive demand for short-term rentals, while the off-season may see an uptick in rentals as parents and faculty visit or stay in the area.

Given the combination of student and tourist populations, condo investors can expect stable rental income year-round, with fluctuations in peak season demand offering opportunities for short-term rental maximization. 

Cebu: The Queen City of the South

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Cebu City is one of the Philippines’ most vibrant economic hubs, driven by its dynamic tourism, trade, and industry sectors. As the country’s second-largest metropolitan area after Metro Manila, Cebu offers a mix of urban convenience and natural beauty, making it a prime destination for both investors and tourists.

Tourist Appeal

Cebu is renowned for its beautiful beaches and world-class resorts, especially in areas like Mactan Island, Malapascua, and Oslob. These attract both local and international tourists seeking sun, sand, and water activities like snorkeling, diving, and island-hopping.

The city also holds significant historical importance, being the site of the first Spanish settlement in the Philippines. Key landmarks such as Magellan’s Cross, Fort San Pedro, and the Basilica Minore del Santo Niño draw visitors interested in cultural heritage and history.

Additionally, Cebu’s central location provides easy access to nearby islands like Bohol, Camotes, and Malapascua, further enhancing its appeal as a gateway for island-hopping adventures. This makes Cebu a key destination for tourists looking to explore other parts of the Visayas region.

For business investors, Cebu is a business and trade hub with its massive business process outsourcing (BPO) and manufacturing industries. It also boasts a growing tech and start-up scene, attracting entrepreneurs and professionals from various industries.

Due to its economic growth, Cebu is experiencing a significant boom in real estate development, especially in the condo market. This is driven by increasing demand for both residential and tourist-oriented properties.

In summary, Cebu is an attractive destination for both tourism and business, offering a vibrant economy, beautiful beaches, rich history, and easy access to neighboring islands. This makes it a prime location for real estate investment, particularly for those looking to tap into both vacation rentals and long-term residential markets.

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Real Estate Potential

As the central business and commercial hub, condo prices in Cebu City typically range from PHP 4,000,000 to PHP 15,000,000 for mid-range to high-end units, depending on location and amenities. Condos in prime areas like IT Park and Mabolo are particularly sought after, with prices for luxury condos and those with views of the city or waterfront potentially going higher.

Mactan Island, known for its beaches and proximity to Cebu City, has seen growing demand for resort-style condos. Prices here generally start at PHP 7,000,000, with beachfront properties and gated communities being more expensive. Mactan is home to several high-end developments targeting both tourists and expats.

Other areas such as Lapu-Lapu City also offer more affordable options, with prices starting at PHP 3,000,000 for mid-range condos. These areas attract a mix of local residents and tourists seeking more budget-friendly living options.

Meanwhile, Cebu’s rental market is thriving, fueled by a combination of tourism and a growing population of professionals, including expats and BPO employees who seek affordable, modern accommodations with easy access to work, shopping, and leisure. 

Condos near popular tourist destinations in Cebu City, Mactan, and nearby islands cater to the strong demand for short-term rentals from domestic and international tourists. The “Airbnb market” is particularly active, with higher rental yields during peak tourist seasons (e.g., holidays and festivals).

In summary, the condo market in Cebu City, Mactan, and nearby areas offers a range of prices to suit different budgets, from affordable units to high-end luxury developments. The strong rental market, fueled by both tourists and a growing professional workforce, makes Cebu a highly attractive investment destination for real estate.

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Investment Considerations

If you’re interested in investing in a condo rental in Cebu, you may want to check out the recommended districts below:

1. IT Park (Cebu Business Park)

IT Park is Cebu’s premier business and technology hub, home to numerous BPO companies, tech startups, and multinational offices. The area is also known for its modern amenities, including cafes, restaurants, retail centers, and entertainment options.

IT Park is a prime location for long-term rentals, particularly for BPO employees, expats, and professionals working in the area. The proximity to major office buildings makes it an attractive choice for tenants seeking convenience. Additionally, IT Park’s growing popularity with tourists and business travelers provides potential for short-term vacation rentals, particularly for those on business trips or short stays.

2. Lahug

Lahug, in Cebu City, is a residential and commercial area near the IT Park, the Cebu Business Park, the Cebu Country Club, and Camp Lapu-Lapu. It offers a more relaxed environment compared to the hustle of downtown areas, making it attractive to both locals and foreigners looking for a quieter, yet well-connected, place to live.

Lahug is a versatile location, offering opportunities for both short-term and long-term rentals. The area attracts professionals working in nearby business districts and families seeking a peaceful neighborhood. Its proximity to restaurants, schools, and hospitals makes it an appealing choice for tenants looking for convenience and comfort. 

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3. Mactan

Mactan Island, famous for its beaches and resorts, has seen a significant increase in real estate development, especially in areas near Mactan-Cebu International Airport and Lapu-Lapu City. Mactan is a gateway for travelers heading to nearby islands, making it a strategic location for both residential and tourism-oriented real estate.

Mactan is ideal for short-term vacation rentals, especially those catering to tourists looking for beachfront properties or resort-style living. With its proximity to resorts and diving spots, condos here can generate strong returns, particularly during peak tourist seasons. 

Long-term rentals also have demand, especially among expats, retirees, and professionals working in nearby resorts or the airport.

Overall, the IT Park area and Lahug are top choices for long-term rentals, particularly among professionals, BPO employees, and expats, offering steady demand due to their proximity to business hubs and amenities.

Meanwhile, Mactan offers great potential for short-term rentals, catering to both tourists and long-term expatriates, thanks to its prime location near beaches, resorts, and the international airport.

Each of these districts provides unique investment opportunities, depending on the investor’s focus—whether it’s short-term vacation rentals or long-term residential leasing.

Davao: Gateway to Mindanao's Natural Wonders

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Davao City’s unique blend of eco-tourism attractions, along with its growing economy, make it an increasingly attractive destination for both tourists and real estate investors. The city's focus on sustainability and its rising reputation as a top eco-tourism destination contribute to its strong tourism growth and appeal.

Tourist Appeal

Davao City, in Davao Region, is rapidly gaining recognition as one of the top tourist destinations in the Philippines, known for its unique mix of urban convenience and natural beauty. The city’s proximity to various natural attractions and eco-tourism sites makes it a haven for travelers seeking outdoor adventures and a more relaxed, nature-centric experience.

Here are some of the most popular destinations in the city:

1. Mt. Apo: As the highest peak in the Philippines, Mt. Apo attracts mountaineers and adventure seekers from around the world. Hiking to the summit offers stunning views and a chance to experience diverse wildlife and rich biodiversity. Its status as a protected national park also adds to its eco-tourism appeal.
2. Samal Island: Located just off the coast of Davao City, Samal Island is famous for its pristine beaches, crystal-clear waters, and luxury resorts. It’s a popular spot for water activities like snorkeling, diving, and island hopping.. 
3. Eco-tourism Sites: Davao is home to a number of eco-tourism sites, such as the Philippine Eagle Center, Eden Nature Park, and the Davao River. These locations highlight the region's commitment to sustainable tourism and preservation of natural habitats, offering visitors a chance to explore the area's unique flora and fauna.

Tourist spots are not the only attractions of Davao. It is one of the fastest-growing cities in the Philippines, with a thriving economy driven by sectors such as agriculture, trade, manufacturing, and real estate. This economic expansion is coupled with improved infrastructure, including better roads, airports, and ports, making the city more accessible to both tourists and investors.

Additionally, Davao has seen a steady increase in tourist arrivals in recent years, both from domestic and international markets. The city is now positioning itself as an alternative to more congested destinations like Cebu and Metro Manila. 

The growing popularity of the city is also fueled by its clean and safe environment, a focus on sustainable tourism, and its appeal as a gateway to nearby natural wonders.

Photo Courtesy of John Mark Barit via Pexels

Real Estate Potential

The condo market in Davao is experiencing steady growth due to the city’s increasing popularity as a tourist and business hub, its growing economy, and infrastructure improvements. The market is attracting a variety of investors, from those seeking properties for vacation rentals to those interested in long-term residential leasing.

For condo prices, mid-range condo units in Davao City typically range from PHP 4,000,000 to PHP 9,000,000. The affordable pricing and competitive financing options have drawn both local and overseas Filipino investors, making Davao a growing real estate market.

Meanwhile, rental yields in Davao are strong, especially in the tourism and business sectors. Average rental returns for properties in the city center are around 3.16% while those in the outskirts can promise 2.31% in yields.

With the city’s growing number of tourists, BPO employees, and expats, demand for both short-term and long-term rentals continues to rise, supporting high occupancy rates in many condo developments.

Investment Considerations

Davao’s expanding tourism and business sector present significant long-term opportunities for condo investors. As the city’s economy continues to grow, driven by BPO industries, trade, and eco-tourism, the demand for both short-term vacation rentals and long-term residential leases will remain strong. 

The development of infrastructure projects, such as improved roads, transport, and airport expansions, will further enhance the accessibility of key condo investment areas. Here’s an overview of the top areas for your condo investment:

1. Davao City CBD

The CBD is the heart of Davao’s business, commercial, and retail activities, making it an ideal location for condo investments. The district attracts both business professionals and tourists with office buildings, shopping malls and entertainment hubs.

As Davao continues to grow as a business hub, demand for residential units near the CBD will remain strong, with high rental yields from both long-term leases and short-term rentals. 

2. Samal Island

 Just a short ferry ride from Davao City, Samal Island is known for its beaches, resorts, and natural attractions. It has become a sought-after location for residential and tourist-oriented developments. Investment in condos near the island’s resorts and waterfronts offers access to the growing eco-tourism market.

With tourism expected to grow, Samal Island is well-positioned to attract more tourists, contributing to strong vacation rental demand. The development of resort-style condos provide a promising opportunity for both short-term rentals and long-term stays, especially with increasing domestic and international tourism.

Photo Courtesy of Rey Rey via Pexels

3. Lanang and Damosa

Located near the Francisco Bangoy International Airport, Lanang and Damosa are emerging residential and commercial areas that attract professionals working in business parks and BPO offices. The development of shopping malls, hotels, and recreational facilities has increased demand for condos in these areas.

With the airport serving as a gateway to nearby islands, and the rapid growth of business and commercial establishments in this area, Lanang and Damosa are expected to see consistent demand for residential properties, both for expats and locals.

4. Ecoland and Matina

These districts are known for their proximity to schools, hospitals, and shopping malls, making them attractive to families and young professionals. Ecoland is also home to large-scale commercial developments, while Matina is becoming a key residential area for those seeking a quieter, more suburban living.

As Davao’s population grows, demand for affordable and mid-range condos in Ecoland and Matina will increase, especially from young professionals and families. The development of more infrastructure and business opportunities will further boost the appeal of these areas.

Aside from the tourist appeal, economic development, and real estate potential in Tagaytay, Baguio, Cebu, and Davao, there are more reasons to consider these places as investment destinations. 

The combination of vibrant local cultures and improved infrastructure enhances a destination's overall tourism appeal and its economic growth prospects.

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