davao region economy

WITH EXPANDING commercial activity and rising land values, a real estate researcher said that Davao Region is one of the country’s most compelling investment destinations, and the best time to invest is now.

During the 2026 Davao Property Market Briefing organized by Aeon Luxe, Joey Roi Bondoc, director and head of research at Colliers Philippines, said the region’s economy is growing faster than the national rate.

Citing the latest regional GDP data from the Philippine Statistics Authority, the country posted a growth rate of 4.4% in 2025, which Davao’s expansion easily exceeded. 

Condo market: 90% take-up rate signals strong demand 

Bondoc presented the average condominium take-up rate in Davao as 90%, a figure he described as a clear buy signal for investors. 

The percentage meant that nine out of every ten condominium units currently on the market have already been sold or reserved.

“This is a very good indicator to tell your potential buyer, now is a good time to invest in Davao. Because eventually, these units will be sold out, and prices will increase. So it’s a very good time right now to really secure these condos at much lower prices, if they still can,” he said.

Bondoc highlighted that major developers such as Aeon are posting an 84% take-up rate as of end-2025, performing well above the industry average for regional and national developments.

Unlike Metro Manila, where some condominium projects are reporting price corrections, Davao is seeing steady price appreciation. 

Bondoc said that with the price appreciation and high take-up, there is a strong appetite for condos in Davao right now. 

House-and-Lot and Lot-Only segments highly active

Bondoc also reported that the horizontal segment in Davao is performing even better, with Davao del Sur posting a take-up rate of 94% and Davao del Norte recording 87%. 

According to Colliers data, House-and-lot prices rose 6% year-on-year from 2016 to 2025.

For the Davao house-and-lot projects with notable price appreciation, registered annual price increases of 4%, 8%, and as much as 9%, priced as much as P12.3 million.

Meanwhile, the lot-only segment emerged as a particularly attractive investment class, with some projects posting up to 16% annual price appreciation.

The take-up rate for the lot-only market in Davao del Sur reached 87%, while Davao del Norte recorded 78%. 

Bondoc said the lot-only segment, the lot-only units, even recording much faster price appreciation than condo and house and lot, is a very good alternative investment option for a lot of buyers, even those coming from Metro Manila. 

He attributed it to pandemic-era lifestyle shifts that continue to drive demand for open, nature-oriented spaces. 

“The COVID-19 pandemic made us realize the preference for these spaces, nature-related projects, wellness-themed developments, leisure-oriented projects, and this has resulted in, a strong demand for lot-only projects,” Bondoc said.

BPO sector drives office demand; Davao’s vacancy among lowest outside Manila 

On the commercial side, Bondoc said Davao’s office market is thriving as the city currently has the lowest office vacancy rate outside Metro Manila.

The vacancy rate of 3% is driven by aggressive expansion from major BPO companies that have established operations in Davao, including but not limited to OP360, Alorica, Concentrix, VXI, Teleperformance, among others.

Bondoc said Davao remains a major player in the outsourcing sector, crucial to know for brokers, to maximize and sell office space in the future.  

“The only challenge, of course, is to find that tenant that would be, you know, willing to sell massive office space. And if you are able to close that deal, that will result in a hefty commission for you,” he said.

Major BPO players are now present in Davao, reducing the need for workers to relocate to Cebu or Metro Manila. 

Bondoc challenged local stakeholders to ensure new office developments from Robinsons Land, SM, and Megaworld are tenanted to maintain Davao’s competitive edge as a BPO hub. 

Moving forward

Bondoc pointed to infrastructure as a key to local long-term investment, as under the current administration’s Build Better More initiative, Davao, in particular, can benefit from major infrastructure projects, including the Mindanao Railway, which he said would open land and property values in surrounding areas once completed. 

“Infrastructure, once started, will likely be completed by succeeding administrations. That’s the beauty of infrastructure; it can weather any political influence,” he said. 

Davao’s hospitality sector is also recovering strongly, with hotel occupancy rates climbing from pandemic-era lows of 10–20% to 50–70% following the full reopening of the economy. 

Bondoc noted that growing domestic tourism, with Davao already among the Philippines’ top-visited destinations, may entice potential property buyers who are first-time visitors but eventually become investors.

“As more Filipinos travel to Davao, eventually they’ll be enticed to buy a condo, house, and lot. As a broker, that is one segment you might want to tackle,” he stressed.