Cost of Living: Cebu, is it more affordable than Manila?

CEBU, Philippines — Cebu remains a more affordable place to live than Metro Manila, with significantly lower costs in rent, dining, and daily expenses, according to the latest cost-of-living data from Numbeo.

However, questions remain on whether this cost advantage is enough to attract businesses and professionals away from the capital.

Cebu vs. Manila: A cost-of-living breakdown

As of February 2025, Numbeo, a crowdsourced database that tracks living expenses worldwide, reported that Cebu’s overall cost of living, excluding rent, is five percent lower than in Manila, while the cost of living including rent is 13.8 percent lower.

Rental prices in Cebu are a standout factor, averaging 39.3 percent cheaper than in the capital.

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With Manila’s rapid urbanization driving up living expenses, Cebu’s affordability is often cited as a major advantage. However, is Cebu’s lower cost of living enough to lure investors, professionals, and businesses away from Metro Manila?

Housing, dining, and essentials: Where Cebu saves more

The difference in living costs is evident across multiple sectors. Housing and rent remain among the most significant factors contributing to Cebu’s affordability.

A one-bedroom apartment in Cebu’s city center costs around P22,500, while a similar unit in Metro Manila averages P37,000.

The disparity is even more pronounced in suburban areas, where rental rates in Cebu remain much more budget-friendly.

READ: Cebu City is Asia’s 60th ‘most expensive city to live’ in 2022

The cost of dining out is also lower, with restaurant prices averaging 15.5 percent lower than in Manila. A basic meal at an inexpensive restaurant in Cebu costs P225, compared to P300 in Manila, while a mid-range three-course meal for two is around P1,200 in Cebu and P1,500 in Manila.

Grocery prices are another aspect where Cebu has a slight advantage, with goods costing 4.1 percent less than in Manila, allowing households to stretch their budgets further.

Basic household utilities, including electricity, water, and waste disposal, are also 25.4 percent cheaper in Cebu. However, internet costs are slightly higher, averaging P1,699 per month, compared to P1,617 in Manila.

Mobile data plans, on the other hand, are significantly more expensive in Cebu, with a standard postpaid plan priced at P2,166 per month, compared to P1,349 in Manila.

READ: Central Visayas inflation rate for January 2025 down to 2.5%

An aerial view of Cebu City. CDN Digital photo | Brian J. Ochoa [FILE PHOTO]

Transportation

Transportation costs present a mixed picture.

While a one-way local transport ticket is 50 percent cheaper in Cebu, costing only P15 compared to P30 in Manila, a monthly transport pass in Cebu is 46 percent more expensive, averaging P850 versus P582 in Manila.

This suggests that while single rides are cheaper, long-term commuting costs could add up.

The wage gap

While Cebu appears to be the more cost-effective city, local purchasing power is 11.4 percent lower than in Manila, meaning that while expenses are lower, so are wages and earning opportunities.

Metro Manila remains the financial and corporate hub of the country, with industries such as banking, technology, and corporate services offering higher salaries than their Cebuano counterparts.

Despite this, Cebu’s economy continues to grow, with its thriving IT and business process outsourcing (BPO) sector, major infrastructure projects like the Cebu-Cordova Link Expressway (CCLEX), and an expanding tourism industry all playing a role in its development.

These economic drivers could help close the income gap between Cebu and Manila in the coming years.

Cebu’s growing recognition

Beyond cost comparisons, Cebu is also gaining recognition as a prime business and lifestyle destination. In a separate ranking, Canadian firm Resonance placed Cebu 92nd in its inaugural list of the “100 Best Cities in Asia-Pacific.” The ranking evaluated cities based on livability, economic opportunities, and tourism appeal.

Cebu stood out for its strong labor participation rate, improving air quality, and major infrastructure developments, positioning itself as an emerging urban hub capable of attracting both investors and skilled workers.

Alongside Cebu, only two other Philippine cities made it to the list—Metro Manila at 53rd and Davao City at 91st.

Numbeo

While Numbeo provides a useful comparative analysis, it is important to note that its data are crowdsourced and not peer-reviewed.

As of February 2025, the platform’s dataset was based on contributions from 113 users from Manila and 37 from Cebu, meaning the figures may reflect subjective experiences rather than official government statistics.

Experts caution that while Numbeo offers valuable insights, it should not be the sole basis for critical financial or investment decisions. Instead, it should be considered a general guide for understanding cost-of-living trends between cities.