The Davao Region continues to emerge as one of the country’s strongest property markets outside Metro Manila, driven by economic growth, expanding infrastructure, a thriving outsourcing industry, and strong demand for residential developments.
During Aeon Luxe Properties, Inc.’s (ALPI’s) 2026 Property Market Briefing held at Aeon Towers in Davao City, Joey Roi Bondoc, director and head of research of Colliers Philippines, said Davao’s economy is outperforming the national growth rate despite slower-than-expected expansion across the country.
“So let me give a quick glimpse of what’s happening to the Philippine economy. As you know, the 2025 growth of the Philippines was 4.4%. Not bad, so it’s still growing. The good news is when you go outside of Metro Manila, what are we seeing? Expansion of these regional economies is actually still pretty okay. Davao is even growing faster than the national growth of 4.4% in 2025,” he said.
Bondoc attributed Davao’s momentum largely to its strong services sector, particularly tourism and business process outsourcing (BPO).
“The good news is that when you look at the Davao Region in terms of its economic breakdown, services continue to fuel your region’s economy. So, we believe that one of the main reasons behind this is your thriving tourism sector, but aside from that, outsourcing sector BPOs to call centers continue to thrive here,” he said.
He also emphasized the role of major infrastructure projects in boosting land and property values across the region.
“Davao Region is a major beneficiary of the Build Better More initiative of the current administration,” Bondoc said.
He cited projects such as the Mindanao Railway, Davao Sasa Port, and the Davao-Samal Bridge.
According to Bondoc, Davao remains one of the most attractive office markets outside Metro Manila, posting the lowest office vacancy rate among key regional hubs.
“Davao has the lowest vacancy right now outside of Metro Manila,” he said.
Bondoc noted that the region’s low office vacancy reflects the aggressive expansion of BPO firms in the city, resulting in higher lease rates due to limited supply.
“Limited supply but a growth in demand results in an increase in price or, in this case, rent,” he explained.
The residential condominium market in Davao also continues to perform strongly, trailing only Cebu outside Metro Manila.
“Cebu is the biggest residential condominium market outside of Metro Manila—trailing Cebu is Davao,” Bondoc said.
He revealed that condominium projects in Davao currently post an average take-up rate of 90%, indicating strong investor confidence in the local property market.
“That’s why, you know, this is a very good indicator to tell your potential buyer: now is a good time to invest in Davao,” he said.
Bondoc added that demand is no longer limited to affordable and mid-market units, as luxury residential developments are also gaining traction in the city.
“Investors are willing to spend more to secure high-end residential units. And that is why we believe that developers should really start launching more upscale, more luxury projects here because the market is already ready,” he said.
Despite the positive outlook, Bondoc stressed the need for developers to maintain quality standards as buyers become more discerning.
“They are willing to pay more, but they also expect more in return,” he said.
Bondoc emphasized that Davao’s sustained growth, infrastructure expansion, outsourcing sector, and residential demand position the region as a major property investment destination in the country.
