The Davao Region is steadily cementing its reputation as one of the country’s top-performing property markets outside Metro Manila, fueled by strong economic expansion, major infrastructure projects, a growing outsourcing industry, and rising demand for residential developments.
Speaking during the 2026 Property Market Briefing hosted by Aeon Luxe Properties, Inc. (ALPI) at Aeon Towers in Davao City, Colliers Philippines Director and Head of Research Joey Roi Bondoc highlighted Davao’s economic resilience despite slower national growth.
He noted that while the Philippine economy expanded by 4.4% in 2025, Davao managed to surpass the national growth pace.
“The Philippine economy continues to grow, but what’s encouraging is that regional economies outside Metro Manila are also performing well. Davao, in particular, is expanding even faster than the national growth rate recorded in 2025,” Bondoc said.
According to Bondoc, Davao’s robust services sector has been a key driver of its sustained momentum, particularly through tourism and the business process outsourcing (BPO) industry.
“When you examine Davao Region’s economic structure, services remain the primary growth engine. Tourism continues to thrive, and at the same time, the outsourcing industry — from BPOs to call centers — continues to expand in the region,” he explained.
Bondoc also pointed to major government infrastructure initiatives that are expected to further increase land values and investment opportunities across Mindanao.
He identified projects such as the Mindanao Railway, Davao Sasa Port modernization, and the Davao-Samal Bridge as major contributors to the region’s rising attractiveness for investors.
“Davao Region is among the biggest beneficiaries of the administration’s Build Better More program,” he said.
In the office sector, Bondoc revealed that Davao currently records the lowest office vacancy rate among major regional cities outside Metro Manila, reflecting strong demand from expanding BPO firms.
“Davao has the lowest office vacancy outside Metro Manila right now,” he noted.
He explained that increasing demand combined with limited office supply has pushed rental rates upward.
“When supply remains limited while demand continues to grow, rental prices naturally increase,” Bondoc added.
The residential condominium market in Davao is likewise showing strong performance, positioning the city as the second-largest condominium market outside Metro Manila next to Cebu.
“Cebu remains the largest residential condominium market outside Metro Manila, followed closely by Davao,” Bondoc said.
He added that condominium developments in the city currently register an average take-up rate of 90%, signaling strong confidence among investors and homebuyers.
“This indicates that now is a favorable time to invest in Davao’s property market,” he said.
Bondoc also observed a growing appetite for upscale residential developments, noting that demand is no longer concentrated solely on affordable and mid-range housing projects.
“Investors are now willing to spend more for premium residential developments. This is why developers should begin introducing more upscale and luxury projects because the market is already mature enough to support them,” he said.
However, he emphasized that developers must continue improving project quality as buyers become increasingly selective.
“Buyers today are willing to pay higher prices, but they also expect better quality and greater value in return,” Bondoc stressed.
With sustained economic growth, infrastructure expansion, a thriving outsourcing industry, and strong residential demand, Bondoc said Davao is well-positioned to become one of the country’s leading property investment destinations in the coming years.
