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Davao City has become one of the Philippines' most attractive property markets outside Metro Manila, drawing both local buyers and foreign investors with its combination of economic stability, lower crime rates, and major infrastructure projects underway.
In this blog post, we break down the current housing prices in Davao City, give you realistic timelines for buying, and explain which neighborhoods are improving fastest in 2026.
We constantly update this blog post with the latest data from official Philippine sources, so you always get fresh and reliable information.
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.
How's the real estate market going in Davao City in 2026?
What's the average days-on-market in Davao City in 2026?
As of early 2026, the estimated average days-on-market for residential properties in Davao City is around 60 to 90 days, with a midpoint of approximately 75 days for a typical correctly priced listing.
The realistic range of days-on-market that covers most typical listings in Davao City spans from 45 to 80 days for condos in good buildings and central locations, to 70 to 120 days for houses and lots where buyers spend more time on title verification and inspections.
Compared to one or two years ago, days-on-market in Davao City has remained relatively stable, though slightly longer than the pre-pandemic period when the BSP policy rate was lower and mortgage affordability was better, meaning buyers today are more careful and take more time to compare options before committing.
Are properties selling above or below asking in Davao City in 2026?
As of early 2026, most residential properties in Davao City are selling slightly below asking price, typically closing at around 2% to 5% below the listed price for standard resale transactions.
Roughly 70% to 80% of Davao City properties sell at or below asking price, while only about 10% to 15% of deals close above asking, and this estimate carries moderate confidence since closed transaction data is not publicly reported in the Philippines, so we rely on broker feedback and market commentary.
The property types and neighborhoods in Davao City most likely to see bidding wars and above-asking sales are near-new condos in prime locations like Lanang or Bajada that are priced competitively, as well as well-maintained houses in established subdivisions with clean titles and strong developer reputations.
By the way, you will find much more detailed data in our property pack covering the real estate market in Davao City.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the Philippines. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What kinds of residential properties can I realistically buy in Davao City?
What property types dominate in Davao City right now?
In Davao City in 2026, the estimated breakdown of the most common residential property types available for sale is approximately 40% condominiums, 35% single detached houses, 15% townhouses and duplexes, and 10% residential lots.
Condominiums represent the largest share of the Davao City residential market right now, making them the most visible property type on major listing portals and the most common choice for first-time buyers and foreign investors.
Condos became so prevalent in Davao City because developers responded to strong demand from young professionals working in IT-BPM, students attending major universities like Ateneo de Davao and University of Mindanao, and foreign buyers who can legally own condo units but face restrictions on land ownership.
If you want to know more, you should read our dedicated analyses:
- How much should you pay for a house in Davao City?
- How much should you pay for an apartment in Davao City?
Are new builds widely available in Davao City right now?
The estimated share of new-build properties among all residential listings currently available in Davao City is around 25% to 35%, with availability varying significantly by neighborhood and property type.
As of early 2026, the neighborhoods and districts in Davao City with the highest concentration of new-build developments include Lanang (especially near the SM Lanang Premiere corridor), Buhangin (benefiting from airport proximity), and the Matina area where mid-rise condo projects continue to launch to serve students and young professionals.
Get fresh and reliable information about the market in Davao City
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Which neighborhoods are improving fastest in Davao City in 2026?
Which areas in Davao City are gentrifying in 2026?
As of early 2026, the top neighborhoods in Davao City currently showing the clearest signs of gentrification include Lanang (with new lifestyle developments and mixed-use projects), Bajada along J.P. Laurel Avenue (where older commercial stock is being upgraded), and Matina Crossing (where condo clusters have attracted new retail and dining options).
The visible changes indicating gentrification in these Davao City areas include the arrival of branded coffee shops and co-working spaces in Lanang, the renovation of older shophouses into modern cafes along Bajada, and the opening of new grocery chains and fitness studios near condo developments in Matina.
The estimated price appreciation in those gentrifying Davao City neighborhoods over the past two to three years has been approximately 15% to 25% cumulative, with Lanang leading at the higher end due to its proximity to SM Lanang Premiere and the airport corridor.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Davao City.
Where are infrastructure projects boosting demand in Davao City in 2026?
As of early 2026, the top areas in Davao City where major infrastructure projects are currently boosting housing demand include the Lanang and Buhangin corridor (benefiting from airport expansion and the Samal bridge approach), and the coastal-adjacent areas that will gain improved access once the Davao City Coastal Road segments fully open.
The specific infrastructure projects driving that demand in Davao City include the P650-million Davao International Airport terminal expansion (adding 48% more floor space), the P23-billion Samal Island-Davao City Connector bridge (now over 40% complete), and the phased opening of the Davao City Coastal Road which will improve cross-city travel times.
The estimated timeline for completion of those major projects in Davao City is December 2026 for the airport terminal expansion, 2027 for the Samal-Davao bridge, and phased openings continuing through 2026 and beyond for the Coastal Road segments.
The typical price impact on nearby properties in Davao City once such infrastructure projects are announced versus completed is approximately 5% to 10% appreciation at announcement stage, followed by an additional 10% to 20% appreciation by completion, with the biggest gains going to properties within a 10-minute drive of the new access points.
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.
What do locals and insiders say the market feels like in Davao City?
Do people think homes are overpriced in Davao City in 2026?
As of early 2026, the estimated general sentiment among locals and market insiders is that Davao City homes are "fairly priced for quality units, but overpriced listings just sit on the market," meaning buyers are willing to pay more only when they see clear value in location, building quality, and clean documentation.
The specific evidence or metrics locals typically cite when arguing homes are overpriced in Davao City include comparisons to Metro Manila CBD prices (since Davao lacks the same rental depth and liquidity), rising monthly association dues that eat into affordability, and the gap between advertised prices and actual BIR zonal values.
The counterarguments commonly given by those who believe prices are fair in Davao City point to the ongoing infrastructure investments that will boost connectivity, the city's strong safety reputation compared to other Philippine cities, and the steady demand from IT-BPM workers and OFW families who see Davao as a lifestyle upgrade from Manila.
The price-to-income ratio in Davao City is somewhat better than Metro Manila's, with a typical middle-income household needing around 8 to 12 years of gross income to purchase a modest condo, compared to 15 to 20 years in Metro Manila's CBDs, though still challenging for many local buyers.
What are common buyer mistakes people regret in Davao City right now?
The estimated most frequently cited buyer mistake that people regret making in Davao City is not verifying the land title early enough through the Land Registration Authority, since many buyers pay reservation fees or even down payments before discovering issues like liens, encumbrances, or duplicate titles that delay or kill the transaction.
The second most common buyer mistake people mention regretting in Davao City is overestimating short-term rental income based on optimistic projections rather than actual occupancy data, leading to disappointing returns when their condo sits empty during low season or faces competition from oversupplied buildings.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Davao City.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Davao City.
Get the full checklist for your due diligence in Davao City
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
How easy is it for foreigners to buy in Davao City in 2026?
Do foreigners face extra challenges in Davao City right now?
The estimated overall difficulty level foreigners face when buying property in Davao City is moderate to high compared to local buyers, primarily due to legal restrictions on land ownership and the need for more documentation, though not because of any Davao-specific discrimination.
The specific legal restrictions that apply to foreign buyers in Davao City include the prohibition on direct land ownership (so house-and-lot purchases require alternative structures like long-term leases or Filipino spouse arrangements) and the 40% project-level foreign ownership cap on condominiums under Republic Act 4726, meaning popular buildings can "run out" of foreign-eligible units.
The practical challenges foreigners most commonly encounter in Davao City include the fact that many local agents and sellers are less experienced with foreign buyer transactions compared to Manila brokers, the need to navigate Philippine banking requirements for fund transfers, and the importance of personally verifying title authenticity since remote due diligence is riskier than in more institutionalized markets.
We will tell you more in our blog article about foreigner property ownership in Davao City.
Do banks lend to foreigners in Davao City in 2026?
As of early 2026, the estimated availability of mortgage financing for foreign buyers in Davao City is limited but possible, with a handful of Philippine banks offering housing loans to foreigners who meet stricter eligibility requirements than those applied to Filipino citizens.
The typical loan-to-value ratios foreign buyers can expect in Davao City range from 50% to 70% (meaning higher down payments of 30% to 50%), and interest rates generally fall within the 7% to 10% annual range depending on the borrower's risk profile, which is broadly in line with the BSP housing loan rate environment.
The documentation and income requirements banks typically demand from foreign applicants in Davao City include proof of stable income (often requiring 2 to 3 years of tax returns or employment records), valid long-term visa or residency status, Philippine bank account history, and sometimes proof of property ownership or assets in the home country.
You can also read our latest update about mortgage and interest rates in The Philippines.
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 risky is buying in Davao City compared to other nearby markets?
Is Davao City more volatile than nearby places in 2026?
As of early 2026, the estimated price volatility of Davao City is moderate compared to nearby markets, typically showing less dramatic swings than Cebu City (which has higher investor activity and can be more cyclical) but similar stability to other Mindanao cities like Cagayan de Oro that are driven primarily by end-user demand.
The historical price swings Davao City has experienced over the past decade have been relatively contained, with prices rising steadily through most of the 2010s, experiencing a modest dip of around 5% to 10% during the pandemic period, and recovering by 2023-2024, while Cebu saw sharper ups and downs due to its larger speculative investor base and greater exposure to tourism.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Davao City.
Is Davao City resilient during downturns historically?
The estimated historical resilience of Davao City property values during past economic downturns is relatively strong, as the city's broad economic base (services, trade, government, education) provides steadier demand than tourism-dependent or single-industry markets.
During the most recent major downturn (the COVID-19 pandemic period), property prices in Davao City dropped an estimated 5% to 10% from peak levels, and recovery took approximately 18 to 24 months to return to pre-pandemic price levels, which was faster than some Metro Manila submarkets that faced oversupply issues.
The property types and neighborhoods in Davao City that have historically held value best during downturns include mid-market condos in Bajada and Matina near employment centers and universities, as well as houses in established subdivisions with strong end-user demand, while speculative outer-zone lots and high-end luxury units tend to see larger declines.
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How strong is rental demand behind the scenes in Davao City in 2026?
Is long-term rental demand growing in Davao City in 2026?
As of early 2026, the estimated growth trend for long-term rental demand in Davao City is modestly positive at around 3% to 6% year-over-year, supported by steady employment in IT-BPM sectors, continuing university enrollment, and the fact that higher mortgage rates push some would-be buyers to rent longer.
The tenant demographics driving long-term rental demand in Davao City include young professionals working in BPO and shared services centers, students attending Ateneo de Davao University and University of Mindanao, and corporate transferees and their families relocating from Manila or other regions for work assignments.
The neighborhoods in Davao City with the strongest long-term rental demand right now are Bajada and the J.P. Laurel corridor (convenient for corporate renters and close to Abreeza Mall), Matina and Ecoland (near schools, hospitals, and SM Ecoland), and Lanang (popular with airport-adjacent business travelers and professionals).
You might want to check our latest analysis about rental yields in Davao City.
Is short-term rental demand growing in Davao City in 2026?
Davao City currently has no specific city-level short-term rental regulations comparable to what some major global cities have implemented, though operators still need standard business permits and must comply with building rules set by their condominium associations, which can restrict Airbnb-style rentals in certain projects.
As of early 2026, the estimated growth trend for short-term rental demand in Davao City is steady but not explosive, with performance levels that are meaningful but not among the top tier compared to more tourism-heavy Philippine destinations like Boracay or Palawan.
The current estimated average occupancy rate for short-term rentals in Davao City is approximately 45% to 55% for well-located units in central areas, with seasonal peaks during festivals like Kadayawan and business conference periods.
The guest demographics driving short-term rental demand in Davao City include domestic business travelers visiting for meetings and conferences, tourists using Davao as a gateway to Samal Island and Mount Apo, and a growing number of digital nomads attracted by the city's safety, affordability, and improving internet infrastructure.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Davao City.
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 are the realistic short-term and long-term projections for Davao City in 2026?
What's the 12-month outlook for demand in Davao City in 2026?
As of early 2026, the estimated 12-month demand outlook for residential property in Davao City is stable to slightly positive, with well-priced condos and end-user homes continuing to find buyers, while overpriced listings will sit longer as buyers remain selective.
The key economic and political factors most likely to influence demand in Davao City over the next 12 months include BSP interest rate decisions (the current 4.5% policy rate has improved mortgage affordability), the pace of infrastructure project completion (especially the airport expansion targeted for December 2026), and overall Philippine GDP growth which affects employment and consumer confidence.
The forecasted price movement for Davao City over the next 12 months is modest appreciation of approximately 3% to 6%, with north corridor areas near the airport and Samal bridge approach potentially outperforming, while oversupplied condo segments may see flatter or even slightly negative movement.
By the way, we also have an update regarding price forecasts in The Philippines.
What's the 3 to 5 year outlook for housing in Davao City in 2026?
As of early 2026, the estimated 3 to 5 year outlook for housing prices and demand in Davao City is constructive, with the north corridor and connectivity-linked areas expected to outperform as major infrastructure projects reach completion and re-rate property values in their vicinity.
The major development projects and urban plans expected to shape Davao City over the next 3 to 5 years include the completed Samal-Davao bridge (targeted for 2027), the airport modernization under a public-private partnership framework, the full opening of Coastal Road segments, and the broader Metro Davao Development Plan which positions the city as Mindanao's primary logistics and investment hub.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Davao City is the execution timeline of these major infrastructure projects, since delays (whether from funding issues, right-of-way disputes, or regulatory challenges like the ongoing Writ of Kalikasan on the Samal bridge) could push back the expected price appreciation in infrastructure-adjacent areas.
Are demographics or other trends pushing prices up in Davao City in 2026?
As of early 2026, the estimated impact of demographic trends on housing prices in Davao City is moderately positive, with steady population growth and urban migration creating consistent underlying demand that supports prices even when financing conditions tighten.
The specific demographic shifts most affecting prices in Davao City include the Davao Region's population of over 5 million (with Davao City itself approaching 2 million residents), continued in-migration from surrounding provinces as people seek better job opportunities, and the young median age of the population which drives household formation and first-time home purchases.
The non-demographic trends also pushing prices in Davao City include OFW remittances flowing back to family members who purchase property as investments or retirement homes, the growth of IT-BPM employment which brings young professionals with stable incomes, and increasing interest from Manila-based buyers seeking lifestyle properties in a safer, less congested city.
These demographic and trend-driven price pressures are expected to continue in Davao City for at least the next 5 to 10 years, as the infrastructure investments currently underway will take time to fully materialize and the underlying population dynamics show no signs of reversing.
What scenario would cause a downturn in Davao City in 2026?
As of early 2026, the estimated most likely scenario that could trigger a housing downturn in Davao City would be a combination of financing conditions tightening materially (if BSP raises rates significantly again due to inflation concerns) and a local or national economic shock that weakens household incomes, creating a demand squeeze that forces some sellers to accept steep discounts.
The early warning signs that would indicate such a downturn is beginning in Davao City include a sharp increase in days-on-market (moving from the current 60-90 days toward 120+ days), rising developer promos and discounts beyond normal marketing activity, and increasing reports of buyers backing out of reservations or failing to complete amortization payments.
Based on historical patterns, the severity of a potential downturn in Davao City could realistically reach 10% to 15% peak-to-trough price decline in a moderate scenario (similar to the pandemic period), or up to 20% to 25% in a severe scenario involving major economic disruption, though the city's diversified economy and strong end-user base would likely limit declines compared to more speculative markets.
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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) Key Rates | It's the Philippine central bank's official dashboard for policy rates and core macro indicators. | We used it to anchor buyer affordability and financing conditions in Davao City for early 2026. We then translated the policy rate environment into what it typically means for mortgage pricing and housing demand. |
| BSP Weekly Housing Loan Rates | It's an official BSP statistical table showing what banks are actually charging by loan type. | We used it to ground realistic bank housing loan rate ranges for late 2025 and early 2026. We then applied that rate range when discussing how sensitive Davao City demand is to borrowing costs. |
| BSP RPPI Report Q2 2025 | It's a primary-source PDF report from BSP with methodology and results for the national Residential Property Price Index. | We used it for the latest pre-2026 direction of Philippine housing price growth and the role of areas outside NCR. We then treated Davao as "outside NCR" context when judging market momentum. |
| Philippine Statistics Authority (PSA) GRDE | PSA is the national statistics office, and this portal provides official entry to regional economic data. | We used it to ground the broader Davao Region demand story in real economic activity. We then used that macro backdrop when explaining why housing demand can stay resilient even during tighter financing periods. |
| PSA 2020 Census Davao Region | It's official PSA census output, which is the gold standard for population data. | We used it to anchor the demographics tailwind around Davao Region's population scale and growth. We then translated that into steady underlying housing formation pressure. |
| City Government of Davao Tourism Data | It's the official city government site reporting from the local tourism office. | We used it as a direct signal of visitor volumes feeding short-term rental and serviced apartment demand. We then used it to support which areas work best for short-term rentals in Davao City. |
| Civil Aviation Authority of the Philippines (CAAP) | CAAP is the national aviation regulator and this is a first-party project update on airport expansion. | We used it to confirm the airport expansion scope and December 2026 completion target. We then tied it to neighborhoods that benefit most from airport-linked jobs and connectivity. |
| Colliers Philippines Property Market Outlook 2026 | It's forward-looking research from a top-tier global real estate consultancy that investors commonly use. | We used it to frame early 2026 expectations including promos, competition, and demand conditions. We then used it when giving 12-month and 3-5 year scenarios for Davao City. |
| Lamudi Quarterly Trend Report | It's a major property portal that publishes aggregated search demand data with clear trend reporting. | We used it to validate that Davao City is consistently on the radar of remote and overseas search demand. We then used it to explain which property types get the most inquiry and why. |
| Bureau of Internal Revenue (BIR) Zonal Values | BIR is the tax authority, and zonal values are an official reference used in property taxation. | We used it as a sanity-check floor for valuations by area classification. We then used it to explain why ultra-cheap market prices that fall far below zonal values deserve extra scrutiny. |
| Land Registration Authority (LRA) eSerbisyo | LRA is the national authority for land titles, and this is an official public service portal. | We used it to outline a practical, low-risk way to verify a title before paying. We then turned that into buyer checklist guidance to reduce fraud and documentation risk. |
| AirDNA Davao City | AirDNA is an established short-term rental data provider used by investors globally. | We used it to triangulate short-term rental demand direction including occupancy and revenue levels. We then translated it into where STRs are most realistic in Davao City and what good performance looks like. |
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