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The Davao City property market is moving at its own pace in 2026, rewarding buyers who pick the right locations while staying cautious about areas where prices have run ahead of fundamentals.
We constantly update this blog post so you can always find the latest housing prices and property forecasts for Davao City.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Davao City.
Insights
- The typical owner-occupied home in Davao City costs around 6.3 million pesos in January 2026, which reflects a market that has grown steadily but remains far more affordable than Metro Manila.
- Davao City condo prices range from 120,000 to 190,000 pesos per square meter in 2026, with prime corridors like Lanang and Bajada commanding the highest premiums.
- Property prices in Davao City increased by roughly 6% to 9% over the past 12 months, with well-located condos outperforming at 7% to 12% growth.
- The Davao City Bypass project, now 60% complete on the Tacunan-Tigatto stretch, is creating real price premiums in surrounding barangays as commute times improve.
- Townhouses in Davao City remain the sweet spot for first-time buyers, priced between 2.6 million and 4.2 million pesos for a typical 2 to 3 bedroom unit.
- The BSP policy rate sits at around 4.5% entering 2026, which supports housing demand without triggering a speculative boom in Davao City.
- Mindanao Railway funding remains uncertain for 2026, so buyers should treat rail-adjacent price premiums as long-term potential rather than immediate value.
- Over the next 5 years, Davao City property prices could grow by 25% to 40% cumulatively, translating to roughly 4.5% to 7% annual appreciation.
What are the current property price trends in Davao City as of 2026?
What is the average house price in Davao City as of 2026?
As of early 2026, the estimated average price for an owner-occupied home in Davao City across common property types is approximately 6.3 million pesos, which converts to around 110,000 USD or 100,000 EUR.
When you look at price per square meter in Davao City, condos typically range from 120,000 to 190,000 pesos per square meter (about 2,100 to 3,300 USD or 1,900 to 3,000 EUR), while houses and townhouses fall between 55,000 and 95,000 pesos per square meter.
For a realistic picture of what most buyers actually pay in Davao City, roughly 80% of property purchases fall between 2.6 million pesos (around 45,000 USD or 41,000 EUR) for entry-level townhouses and 8.5 million pesos (around 148,000 USD or 135,000 EUR) for mid-market single-detached homes.
How much have property prices increased in Davao City over the past 12 months?
Property prices in Davao City increased by an estimated 6% to 9% over the past 12 months, reflecting steady demand without the frenzy you might see in Metro Manila.
Looking at specific property types in Davao City, condos in prime locations grew fastest at 7% to 12%, while mid-market houses and townhouses saw more modest gains of 5% to 8%.
The single most significant factor behind this price movement was Davao City's strengthening role as Mindanao's regional hub, which kept end-user demand healthy even as buyers remained sensitive to interest rates and financing terms.
Which neighborhoods have the fastest rising property prices in Davao City as of 2026?
As of early 2026, the three neighborhoods with the fastest rising property prices in Davao City are Lanang, Matina, and Bajada, all of which benefit from strong job concentrations and established commercial activity.
In terms of annual price growth, Lanang and Bajada are seeing approximately 10% to 12% appreciation, while Matina follows closely at around 8% to 10% growth year over year.
The main demand driver behind these fast-rising Davao City neighborhoods is their proximity to major retail, office, and lifestyle nodes, which makes them highly convenient for both end-users and tenants seeking shorter commutes.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Davao City.
We have made this infographic to give you a quick and clear snapshot of the property market in the Philippines. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which property types are increasing faster in value in Davao City as of 2026?
As of early 2026, the ranking of property types by value appreciation in Davao City goes: well-located condos first, followed by townhouses and compact houses, then mid-market single-detached homes, and finally duplexes.
The top-performing property type in Davao City, which is condos in prime corridors, is appreciating at roughly 7% to 12% annually depending on the specific project and location.
The main reason condos are outperforming other property types in Davao City is that they capture the strongest "convenience plus lifestyle plus investor" demand, especially in areas with good management and easy access to jobs and retail.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in Davao City?
- How much should you pay for a house in Davao City?
- How much should you pay for an apartment in Davao City?
- How much should you pay for a studio in Davao City?
What is driving property prices up or down in Davao City as of 2026?
As of early 2026, the top three factors driving property prices in Davao City are infrastructure improvements that reduce travel time, the city's role as Mindanao's regional hub for jobs and services, and a stable macroeconomic environment with manageable inflation.
The single factor with the strongest upward pressure on Davao City property prices is the visible progress on the Davao City Bypass project, which is making certain barangays genuinely faster to reach and creating real convenience premiums.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Davao City here.
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What is the property price forecast for Davao City in 2026?
How much are property prices expected to increase in Davao City in 2026?
As of early 2026, property prices in Davao City are expected to increase by approximately 4% to 7% over the course of the year under a base case scenario.
The realistic range of forecasts from different analysts for Davao City property price growth spans from 0% to 3% in a downside scenario (if rates stay sticky and confidence weakens) up to 7% to 10% in an upside scenario (if rates ease more and job growth strengthens).
The main assumption underlying most price increase forecasts for Davao City is that the BSP will maintain its current policy stance without aggressive tightening, which keeps mortgage affordability stable enough to support buyer demand.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Davao City.
Which neighborhoods will see the highest price growth in Davao City in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Davao City are Lanang, Matina, Maa, and select pockets of Buhangin where improving access meets affordability.
The projected price growth for these top Davao City neighborhoods ranges from 8% to 12% for Lanang and Matina, and around 6% to 9% for Maa and Buhangin.
The primary catalyst driving expected growth in these Davao City neighborhoods is their combination of established services, job proximity, and lifestyle amenities that attract both end-users and investors.
One emerging neighborhood in Davao City that could surprise with higher-than-expected growth is the Toril and Tacunan corridor, where the Davao City Bypass progress is starting to translate into real travel-time savings.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Davao City.
What property types will appreciate the most in Davao City in 2026?
As of early 2026, the property type expected to appreciate the most in Davao City is mid to upper-mid condos in prime corridors, followed closely by townhouses in commutable areas.
The projected appreciation for the top-performing property type in Davao City, which is well-located condos, ranges from 7% to 12% depending on the specific project and micro-location.
The main demand trend driving appreciation for condos in Davao City is the growing preference among young professionals and investors for convenient, low-maintenance living close to work and lifestyle amenities.
The property type expected to underperform in Davao City during 2026 is larger single-detached homes at higher price points, because they face the tightest affordability constraints and depend on a narrower pool of qualified buyers.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the Philippines versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How will interest rates affect property prices in Davao City in 2026?
As of early 2026, the impact of current interest rate trends on Davao City property prices is moderately supportive, because the BSP is not aggressively tightening and this keeps mortgage demand relatively healthy.
The current BSP policy rate is around 4.5%, and the expected direction for mortgage rates in Davao City is stable to slightly lower if inflation remains contained throughout 2026.
A 1% change in interest rates typically affects property affordability in Davao City by shifting the buyer pool significantly, with lower rates pulling more townhouse and mid-market home buyers into qualifying range and higher rates pushing buyers toward smaller units or cheaper districts.
You can also read our latest update about mortgage and interest rates in The Philippines.
What are the biggest risks for property prices in Davao City in 2026?
As of early 2026, the top three biggest risks for property prices in Davao City are an affordability squeeze if rates stay elevated while prices keep rising, infrastructure timing disappointments on major projects, and broader macroeconomic confidence shocks that could weaken investment sentiment.
The single risk with the highest probability of materializing in Davao City is the affordability squeeze, because even with stable rates, incomes do not jump quickly enough to keep pace with rising prices in the most sought-after neighborhoods.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Davao City.
Is it a good time to buy a rental property in Davao City in 2026?
As of early 2026, buying a rental property in Davao City is generally a good idea for investors who focus on proven corridors and property types with deep tenant demand, rather than chasing the highest-priced micro-locations.
The strongest argument in favor of buying a rental property now in Davao City is that financing conditions are stable, the city's role as a regional hub keeps tenant demand consistent, and infrastructure progress is creating real value in accessible areas.
The strongest argument for waiting before buying a rental property in Davao City is that some prime locations may be priced ahead of what local rents can justify, which means your yield could disappoint if you overpay for a hyped neighborhood.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Davao City.
You'll also find a dedicated document about this specific question in our pack about real estate in Davao City.
Buying real estate in Davao City can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Davao City?
What is the 5-year property price forecast for Davao City as of 2026?
As of early 2026, the estimated cumulative property price growth in Davao City over the next 5 years is approximately 25% to 40% under a base case scenario.
The range of 5-year forecasts for Davao City spans from a conservative 10% to 20% cumulative growth if macro conditions disappoint, up to an optimistic 40% to 55% cumulative growth if rates ease and infrastructure delivery accelerates.
This translates to a projected average annual appreciation rate of roughly 4.5% to 7% per year over the next 5 years in Davao City.
The key assumption most forecasters rely on for their 5-year property price predictions in Davao City is that the Philippines will maintain mid-single-digit GDP growth with manageable inflation, allowing steady household income gains to support housing demand.
Which areas in Davao City will have the best price growth over the next 5 years?
The top three areas in Davao City expected to have the best price growth over the next 5 years are Lanang and Sasa (if masterplans mature), Matina and Ecoland (for their durable demand), and the Toril to Tacunan corridor (as bypass benefits become fully realized).
The projected 5-year cumulative price growth for these top-performing areas in Davao City ranges from 35% to 55%, with Lanang and Matina at the higher end and bypass-adjacent areas potentially exceeding expectations if infrastructure delivery stays on track.
This differs slightly from the shorter 2026 forecast because the 5-year view gives more weight to infrastructure completion and neighborhood maturation, while the 1-year view favors areas that already have established convenience premiums.
The currently undervalued area in Davao City with the best potential for outperformance over 5 years is Buhangin, where improving access and relative affordability could attract more buyers as prime corridors become increasingly expensive.
What property type will give the best return in Davao City over 5 years as of 2026?
As of early 2026, the property type expected to give the best total return over 5 years in Davao City is compact condos (1BR to 2BR) in proven corridors, because they combine steady rental income with solid appreciation potential.
The projected 5-year total return for this top-performing property type in Davao City, including both appreciation and rental income, is roughly 45% to 70% cumulatively, depending on the specific location and management quality.
The main structural trend favoring compact condos over the next 5 years in Davao City is the growing population of young professionals and small households who prefer convenient, low-maintenance housing near jobs and lifestyle amenities.
For investors seeking the best balance of return and lower risk over 5 years in Davao City, townhouses in commutable areas offer a compelling alternative because they have the widest buyer pool for resale and attract stable family tenants.
How will new infrastructure projects affect property prices in Davao City over 5 years?
The top three major infrastructure projects expected to impact property prices in Davao City over the next 5 years are the Davao City Bypass (which is already 60% complete on key stretches), the Mindanao Railway (if funding continues), and ongoing road network improvements connecting outer barangays to the city center.
The typical price premium for properties near completed infrastructure projects in Davao City runs around 10% to 20% compared to similar properties in areas without improved access, based on how the market has historically responded to travel-time reductions.
The specific neighborhoods in Davao City that will benefit most from these infrastructure developments are Tigatto, Tacunan, and Toril (for the bypass), and the broader Tagum-Davao-Digos corridor if the Mindanao Railway advances as planned.
How will population growth and other factors impact property values in Davao City in 5 years?
The projected population growth rate for the Davao Region supports continued housing demand over the next 5 years, with PSA census data showing a large and growing population base that underpins structural demand even during economic cooling periods.
The demographic shift that will have the strongest influence on property demand in Davao City is the growth of young professional households and nuclear families seeking affordable, convenient housing near jobs and schools.
Migration patterns, including domestic migration from other parts of Mindanao and returning overseas Filipino workers, are expected to support property values in Davao City by sustaining demand for mid-market housing and keeping rental occupancy stable.
The property types and areas that will benefit most from these demographic trends in Davao City are townhouses and compact condos in established corridors like Matina, Maa, and Buhangin, where affordability meets accessibility for working families.
We made this infographic to show you how property prices in the Philippines compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What is the 10 year property price outlook in Davao City?
What is the 10-year property price prediction for Davao City as of 2026?
As of early 2026, the estimated cumulative property price growth in Davao City over the next 10 years is approximately 55% to 95% under a base case scenario.
The range of 10-year forecasts for Davao City spans from a conservative 25% to 45% cumulative growth in a low-growth scenario, up to an optimistic 95% to 130% cumulative growth if the city fully realizes its potential as Mindanao's premier metro hub.
This translates to a projected average annual appreciation rate of roughly 4.5% to 7% per year over the next 10 years in Davao City, which is consistent with how regional hub cities typically perform when economic fundamentals remain supportive.
The biggest uncertainty factor in making 10-year property price predictions for Davao City is whether major infrastructure projects like the Mindanao Railway will actually be funded and delivered on schedule, as delays could significantly dampen long-term growth expectations.
What long-term economic factors will shape property prices in Davao City?
The top three long-term economic factors that will shape property prices in Davao City over the next decade are sustained Philippine GDP and employment growth, the stability of the inflation and interest rate environment, and the execution of infrastructure projects that improve accessibility.
The single long-term economic factor with the most positive impact on property values in Davao City is the city's deepening role as Mindanao's premier hub for jobs, healthcare, education, and retail, which creates consistent demand regardless of short-term economic fluctuations.
The single long-term economic factor that poses the greatest structural risk to property values in Davao City is a prolonged period of elevated interest rates or inflation, which could squeeze affordability and slow household formation for years.
You'll also find a much more detailed analysis in our pack about real estate in Davao City.
Is buying a property in Davao City a good long-term investment then?
For most individual investors, buying property in Davao City is a good long-term investment if you prioritize liquidity and livability over speculative gains in the hottest micro-locations.
The strongest argument for Davao City as a long-term investment is that properties in proven corridors like Lanang, Bajada, Matina, and Maa tend to stay rentable even during economic downturns, which protects your investment through full cycles.
The key principle to follow when buying in Davao City for the long term is to purchase what people will still want in 2036 even if the economy has a rough year, which means convenient locations, safe neighborhoods, practical layouts, and realistic price per square meter.
You'll also find a much more detailed analysis in our pack about real estate in Davao City.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Davao City, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Bangko Sentral ng Pilipinas (BSP) | The central bank's official record of policy and money-market rates. | We used it to anchor current borrowing conditions in January 2026. We then translated rate direction into mortgage affordability and buyer demand impacts. |
| Reuters (Inflation Coverage) | A top-tier wire service that reliably reports official releases and central bank guidance. | We used it to pin down late-2025 inflation and the BSP's near-term stance entering 2026. We then reflected that in our 2026 price growth scenarios for Davao City. |
| Reuters (2026 Budget) | An independently edited report summarizing the enacted national budget and growth assumptions. | We used it to understand how supportive fiscal policy may be in 2026. We then mapped that to Davao demand drivers like jobs and construction activity. |
| Philippine Statistics Authority (PSA) | The official statistics agency with authoritative census publications. | We used it for official population levels and growth context for the Davao Region. We then explained how population growth supports structural housing demand. |
| Asian Development Bank (ADB) | A major multilateral institution with transparent macro forecasting. | We used it to anchor a reasonable baseline for national growth in 2026. We then translated that macro baseline into demand expectations for Davao housing. |
| IMF World Economic Outlook | A global reference forecast used widely by governments and markets. | We used it to frame global growth and risks affecting OFWs, outsourcing, and sentiment. We then treated Davao as a regional hub that benefits when global conditions are stable. |
| World Bank Philippines Updates | A standard, widely cited macro reference for country-level analysis. | We used it to cross-check the macro story on growth and investment headwinds. We then built conservative and optimistic housing scenarios around those macro paths. |
| City Government of Davao | The official city government channel summarizing DPWH project progress. | We used it to identify which corridors are getting real travel-time improvements soon. We then highlighted the barangays likely to see a convenience premium. |
| GMA News | A major national newsroom reporting DOTr budget details affecting project timing. | We used it to keep rail-driven price optimism realistic for 2026. We then focused longer-term upside on what is actually funded and moving. |
| Philippine News Agency (PNA) | A government newswire that republishes official agency updates. | We used it to confirm which parts of the Mindanao Railway project are actively progressing. We then treated those as option value for longer-run corridor demand. |
| Colliers Philippines | A global brokerage and research firm with established, repeatable reporting. | We used it to anchor how developers and end-buyers behave in key regional cities like Davao. We then combined it with listing evidence to estimate local pricing. |
| Pag-IBIG via Philstar | Quotes an official housing-finance institution and provides a public benchmark rate. | We used it as a practical proxy for mass-market mortgage pricing and affordability. We then connected affordability changes to which property types get pulled up first. |
| Lamudi (Houses) | One of the largest real estate marketplaces in the Philippines with many active listings. | We used it as one leg of our asking-price dataset for houses and townhouses. We then converted listing ranges into typical transaction estimates with a small negotiation discount. |
| Lamudi (Condos) | A large, continuously updated pool of active condo listings. | We used it as one leg of our asking-price dataset for condos. We then sanity-checked per-square-meter pricing against other portals. |
| Dot Property | Frequently displays explicit price per square meter on listings, which helps verification. | We used it to cross-check condo per-square-meter levels in prime vs non-prime areas. We then triangulated a citywide typical condo price band for January 2026. |
| FazWaz | Publishes price per square meter across many listings for quick cross-checks. | We used it as a third independent check on per-square-meter condo asking prices. We then kept only price signals that matched across at least two major portals. |
| Lamudi Trend Reports | A consistent, time-series style publication from a major marketplace. | We used it for qualitative signals on what buyers are searching for and how demand shifts. We then kept our neighborhood commentary aligned with observed buyer interest. |
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If you want to go deeper, you can read the following: