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What is happening in Davao City’s real estate market? Are prices on the rise or decline? Is Davao City still attracting foreign investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers alike, from the bustling city center to the serene outskirts. Perhaps you’re curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Davao City real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
1) Foreign investors will target Davao City's residential market as a strategic entry into the Philippine real estate sector
Foreign investors are eyeing Davao City's residential market as a key entry point into the Philippine real estate scene.
In 2023, Davao City saw a surge in foreign direct investment, with over P3 billion in pledges. By 2024, the city broke records, approving incentives for companies with a total investment of ₱3.38 billion in just the first nine months. This shows how attractive the city has become to international investors.
The Davao City Investment Incentive Board (DCIIB) sweetens the deal with perks like three-year exemptions from business sales tax, two-year breaks on real property tax, and waived Mayor’s permit fees for three years. These benefits make Davao City a magnet for foreign investors wanting to dive into the Philippine market.
Expats and retirees are flocking to Davao City, drawn by its warm hospitality and modern amenities. The growing expatriate community is boosting the real estate market, making it a prime spot for residential investments.
Compared to other major cities in the Philippines, properties in Davao City are more affordable, offering a cost-effective entry for foreign investors. This affordability, combined with the city's charm, makes it an ideal choice.
Sources: Davao City yields P3 billion investment pledges, Davao City triples investment performance in 2023, surpasses targets for 2024, Why Davao Properties are Perfect for Expats and Retirees, Davao Properties: Exploring the Growth of the Real Estate Market
2) Davao City rental yields will rise as more professionals relocate for job opportunities
Rental yields in Davao City are set to rise as more professionals flock to the area for job opportunities.
With a surge in job postings, especially in the IT and BPO sectors, Davao City is becoming a hotspot for employment. Multinational companies are setting up shop here, which means more people are looking for places to live. This influx is driving up the demand for housing.
The city is transforming into a business hub, thanks to projects like the Davao City Bypass Construction Project. These developments are not just about roads; they’re about making the city more connected and economically vibrant. This makes Davao City even more appealing to businesses and professionals alike, pushing the need for rental properties higher.
Demographic shifts show a steady stream of professionals and skilled workers moving in, which is great news for landlords. The rental market is buzzing, with a high occupancy rate of 92% as of September 2024. This indicates that rental properties, especially in central areas, are in hot demand.
For those considering investing in property, Davao City offers a promising opportunity. The combination of job growth, infrastructure development, and a steady influx of professionals means that rental yields are likely to continue their upward trend.
As the city continues to grow, both in terms of population and economic activity, the rental market is expected to remain strong. This makes Davao City an attractive option for property investors looking to capitalize on the increasing demand for rental housing.
Sources: Philippine Property Hub, JICA, Inquirer Business
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.
3) Suburban property prices in Davao City may dip slightly as urban areas gain appeal
Urban areas in Davao City are becoming increasingly popular for property investment.
Thanks to the Davao Regional Development Investment Program, nearly PHP 947 billion is being poured into urban infrastructure, making city life more appealing. This influx of funds is attracting young professionals, expatriates, and retirees who are eager to enjoy the conveniences of urban living.
Developers are catching on, launching new condo projects in hotspots like Downtown Davao. As a result, property demand in these central areas is on the rise, pushing up values faster than in the suburbs.
With the city's population and business activities expanding, urban property values are appreciating more quickly than those in suburban areas. This growth is driven by a need for more residential, commercial, and industrial spaces.
Real estate agents and consumer surveys reveal a clear trend: people prefer the convenience of city life. This is evident in the high demand for rentals in central Davao, where everything is just a stone's throw away.
Sources: RDC XI Approves Davao Regional Development Investment Program 2023-2028, Davao Real Estate 2024: What Buyers and Investors Need to Know, Davao Rental Market Update
4) Davao City's real estate market will stabilize with slight price fluctuations over the next year
The residential real estate market in Davao City is set to stabilize with minor price fluctuations over the next year.
One key factor is the increased supply of residential units from ongoing and upcoming projects. This boost in housing options is crucial for meeting the growing demand, helping to balance the market. If you're considering buying, this means more choices and potentially better deals.
Davao City's economy is on a roll, with a 7.5% GDP growth in 2023. This growth is largely fueled by services like accommodation and food, which are thriving and adding to the city's appeal. As the local economy strengthens, so does the demand for housing, making it a promising time to invest.
Infrastructure projects are also playing a big role. The government is enhancing connectivity and accessibility, making Davao City more attractive to investors. This development supports real estate growth, ensuring that the market remains vibrant and appealing.
Looking back, the market has shown moderate price changes, suggesting a trend of stability. This historical consistency is a good sign for potential buyers, indicating that the market is unlikely to experience drastic shifts.
Local government policies are also in your favor. With incentives for developers, the environment is ripe for real estate development, contributing to a stable market. This means more opportunities for you to find the perfect property.
Sources: Philippine Statistics Authority, Philippine Property Hub
5) Davao City townhouses will appeal more to families seeking a balance of space and community living
Townhouses in Davao City are becoming a top choice for families looking for a mix of space and community.
In 2024, pre-selling prices for residential units in Metro Davao jumped by 5-7%, a clear sign of the city's growing appeal. This rise is fueled by a bustling population and thriving business scene, making the housing market robust. Rental prices also climbed by 3% as of September 2024, showing strong demand.
The city's population is booming, nearing 2 million in 2024 with a steady annual growth rate of 2.16%. This surge is pushing up the need for homes, and townhouses are catching the eye of families who love community vibes. Plus, with projects like the Davao City Bypass Construction Project, getting around is becoming a breeze, making life more convenient.
Developers are catching on, rolling out more townhouse projects to cater to the demand for multi-family living. Townhouses offer a sweet spot between space and cost, making them a smart pick for families. These neighborhoods often come with perks like parks and playgrounds, adding to the community feel.
Sources: World Population Review, PCO, Global Property Guide
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6) Urban renewal projects will make Agdao more attractive to investors by improving its livability
Agdao is becoming a hotspot for investors thanks to urban renewal projects in Davao City.
The IM4Davao Project is a game-changer, modernizing infrastructure like roads and public transport, which boosts connectivity and accessibility in Agdao. This is a big deal for investors who want easy access and efficient transportation.
Another major upgrade is the Davao Public Transport Modernization Project. With new electric buses and Euro-5 standard diesel buses, public transportation has become more reliable, making Agdao even more appealing to investors.
Property values in Agdao are on the rise, reflecting its growing allure. The IM4Davao project is steering investments into housing and commercial spaces, and as infrastructure and services improve, property values are expected to climb, attracting more investors.
These projects are not just about infrastructure; they’re about transforming Agdao into a vibrant community. With better roads and transport, the area is set to become a thriving hub for both residents and businesses.
Investors are taking note of Agdao’s potential, as urban renewal projects continue to enhance its livability. The area is poised for significant growth, making it a smart choice for those looking to invest in property.
Sources: JICA Report, ADB Project, JICA Urban Activities
7) Foreign buyers will increasingly target Davao City's residential market due to favorable exchange rates
Foreign buyers are increasingly interested in Davao City's real estate market due to favorable exchange rates.
With the Philippine peso weakening against major currencies, folks from places like the U.S. find their dollars stretching further when buying property in Davao City. This means they can get more bang for their buck, making it a hot spot for international buyers.
Real estate agencies in Davao City are buzzing with inquiries from abroad. Experts in the field point out that these favorable exchange rates are a big draw. When new projects hit the market, they often sell out fast, showing that both local and international buyers are eager to invest.
The Philippine government has also rolled out policies that make it easier for foreigners to own property, which is a big plus for international investors. Davao City's real estate market is not only stable but also growing, offering affordable options compared to other Southeast Asian cities.
For those looking to invest, Davao City offers a unique blend of affordability and growth potential. The combination of a strong real estate market and favorable conditions for foreign ownership makes it an attractive choice for savvy investors.
As the market continues to thrive, foreign buyers are likely to keep their eyes on Davao City, drawn by the promise of good value and a welcoming investment environment.
Sources: Davao Properties, Real Estate Philippines Filipino Homes, Real Estate News PH, Davao Properties
8) New zoning rules in Davao City will promote mixed-use residential development
In 2023, Davao City rolled out new zoning regulations to boost mixed-use residential areas.
These changes, through Executive Orders No. 34 and No. 35, restructured the Local Zoning Board of Appeals and the Local Zoning Review Committee. Their main job is to tweak the Zoning Ordinance, making it easier for mixed-use projects to thrive. This means fewer headaches over location clearances and non-conformity issues, paving the way for more integrated living spaces.
The Paragon Davao, a P3-billion venture by Cebu Landmasters, Inc., is a shining example of this potential. Completed in 2023, it features a residential tower, a hotel, and a lifestyle mall, showing the rising demand for properties that blend living and commercial spaces. People are leaning towards these convenient setups, where everything is just a stone's throw away.
Infrastructure is also getting a boost with projects like the Davao City Bypass Road and the Coastal Road Project. These are not just roads; they’re lifelines that improve connectivity and accessibility across the city. With better access, suburban areas are becoming more attractive for mixed-use developments.
These infrastructure upgrades mean you can easily zip around the city, making suburban living more appealing. It's not just about living in the city center anymore; it's about having the best of both worlds—urban amenities and suburban peace.
So, if you're eyeing a property in Davao, these changes are setting the stage for a more integrated and convenient lifestyle. The city is evolving, and these developments are a big part of that transformation.
Sources: Davao City Government, BusinessWorld Online, JICA Report
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.
9) New transportation projects will improve access to Davao City residential areas, boosting property values
Davao City is buzzing with new transportation projects that are set to transform the area.
President Ferdinand R. Marcos Jr. is pushing forward the Davao Public Transport Modernization Project (DPTMP), a massive effort to revamp the city's transit system. With a hefty $1-billion loan from the Asian Development Bank, this project is no small feat. The DPTMP plans to roll out a 672-kilometer bus route network, featuring 29 interconnected routes. Imagine hopping on one of the 400 articulated battery electric buses or over 500 diesel buses, all designed to serve 800,000 passengers daily.
Another exciting development is the Davao City Coastal Bypass Road Project. Its first segment opened in July 2023, offering a direct route to key barangays. This road is a game-changer, cutting down travel times and making it easier to get around.
For those using public transport, these projects mean saving an average of 5.62 minutes per day, while private vehicle users can expect to save about 1.09 minutes daily. These time savings make residential areas more accessible and appealing to potential homebuyers.
Real estate is already feeling the impact. In places like Verdon Parc, property values are on the rise thanks to the new Coastal Bypass Road. Urban planners and real estate experts agree that better transportation boosts property values by making areas more convenient and accessible. The demand for homes near these new transport hubs is growing, as seen with the Davao Bus Project.
Sources: PCO News Releases, MindaNews, DMCI Homes, Asian Development Bank, Davao City Government
10) Foreign buyers will drive diverse residential developments catering to international preferences
Davao City is seeing a surge in foreign property buyers, reshaping its real estate landscape.
In recent years, real estate growth in Davao City has been impressive, with a 5.9% rise in 2022. This boom is largely fueled by Overseas Filipino Workers (OFWs), who make up a significant portion of the market. Their interest, along with other international buyers, remains strong despite global challenges.
Developers are responding to this influx by tailoring projects to foreign tastes. For instance, the number of international and bilingual schools is on the rise, including Davao Christian High School and Philippine Nikkei Jin Kai International School. These schools offer diverse curricula, catering to expatriate families and reflecting the demand for international amenities.
The city's appeal is further enhanced by the presence of multinational companies and a growing expatriate community. Davao's business-friendly environment attracts foreign investors, leading to collaborations between local developers and international architects. This results in residential projects that incorporate modern styles and amenities, appealing to global tastes.
Many real estate projects are being pre-sold, indicating that developers are actively marketing to foreign investors. This trend is evident in the diverse residential developments popping up across the city, designed to meet international standards and preferences.
Sources: Real Estate News, SunStar Davao, Expat Exchange
11) Young professionals will boost demand for modern, compact living spaces in Davao City
Young professionals are increasingly driving the demand for modern, compact living spaces in Davao City.
In 2023, the Davao Region saw a remarkable boost in employment, with 97.1% of the workforce employed. This strong job market is a magnet for young talent, making the city a hotspot for career-driven individuals.
By 2045, the services sector is expected to dominate employment in Davao City. This shift is in line with the global trend where millennials and Gen Z are drawn to urban living for its convenience and amenities, making the city an attractive place for these younger generations.
Real estate reports from 2024 show a growing interest in smaller living units like condominiums and apartments. These spaces are designed to fit the lifestyle of young professionals who prefer compact and efficient living arrangements.
Moreover, the development of mixed-use properties is gaining traction. These properties, which blend residential, commercial, and recreational spaces, are particularly appealing to young professionals who value integrated living environments.
Sources: SunStar Davao, World Bank Document, JICA Report
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12) Young professionals will increasingly favor Davao City condominiums for their convenience and amenities
Condominiums in Davao City are gaining traction among young professionals for several compelling reasons.
One major factor is the 160% surge in condominium unit sales in 2022, with an expected average of 3,030 new units completed annually from 2022 to 2026. This boom means more choices for those seeking modern living spaces. The city is also expanding its business district, adding about 20,900 square meters of office space, making it convenient for young professionals to live close to work and urban amenities.
National developers are flocking to Davao, turning it into an attractive investment hub. This influx is boosting the appeal of condominiums, which are often located near business districts and commercial areas. Young professionals are drawn to these areas for their proximity to work and the vibrant city life they offer.
Modern amenities are another big draw. Condos come equipped with gyms, pools, and co-working spaces, aligning perfectly with the lifestyle preferences of young professionals who value convenience and a high quality of life. The trend towards urban living and low-maintenance homes makes condos an ideal choice for this demographic.
Traffic congestion in Davao City is a growing concern, making city-center living more appealing. By choosing a condo, young professionals can avoid long commutes, which is a practical solution to the city's traffic woes. Upcoming government infrastructure projects like the Mindanao Railway and the Davao City Bypass Road promise to improve urban connectivity, further enhancing the appeal of condo living by reducing travel times.
These factors combined make condominiums a smart choice for young professionals in Davao City, offering a blend of convenience, modern amenities, and strategic location.
Sources: SunStar, Davao Properties
13) Luxury property prices in Davao City will rise significantly as affluent buyers seek exclusive locations
Luxury residential properties in Davao City are on the brink of a price surge as affluent buyers eye exclusive spots.
Picture this: Davao City is buzzing with activity, and it's not just the local markets. The average rental price for residential properties jumped by 3% from August to September 2024, showing a clear uptick in demand. With a solid 92% occupancy rate, it's clear that people are eager to settle here.
Why the sudden interest? Well, Davao City is not just any city; it's a hotspot for investors. Thanks to its strategic location and ongoing projects like the Davao City Bypass Road and the revamped Davao International Airport, the city's accessibility and appeal are skyrocketing. This makes it a magnet for both local and international investors.
But there's more. The city is becoming a favorite among high-net-worth individuals looking for investment and retirement havens. Big names like Ayala Land and SM Prime are rolling out luxury developments, elevating the city's property market profile and catering to those with a taste for the finer things.
Now, here's the kicker: prime real estate in Davao City is limited. As the city grows, the scarcity of high-end properties is pushing prices up. This makes it a golden opportunity for those seeking exclusive living spaces.
So, if you're considering a move or investment, Davao City's luxury market is where the action is. The combination of demand, development, and limited supply is a recipe for rising prices, making it a smart choice for savvy buyers.
Sources: SunStar Davao, Real Estate Philippines Filipino Homes, Philippine Property Hub
14) Davao City’s property prices will rise moderately as demand exceeds supply in key areas
Davao City's population is growing rapidly, with nearly 2 million residents expected by 2024.
This surge in people naturally means more demand for homes, especially in bustling areas like Downtown Davao. As more folks move in, the city is buzzing with new infrastructure projects that make getting around easier and support the city's growth.
These developments are part of a smart urban plan that ties together transport and land use, ensuring the city grows in a controlled way. With these improvements, urban functions are getting a boost, making Davao City an attractive place to live.
On the real estate front, property prices in Davao City have been on the rise. In 2024, pre-selling prices for homes in Metro Davao jumped by 5-7%, a clear sign of the growing demand. This trend is not just about buying; renting is also on the up.
Rental prices saw a 3% increase by September 2024, showing that the economy is healthy and people are keen to find housing. This steady climb in both buying and renting highlights the city's vibrant real estate market.
With demand outpacing supply in key areas, residential property prices in Davao City are set for a moderate increase. The city's ongoing development and population growth are key drivers of this trend.
Sources: World Population Review, Philippine Property Hub, JICA
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.
15) Rental yields in older Davao City areas will drop as tenants prefer newer developments
Older residential areas in Davao City are losing their rental appeal as newer developments draw in more tenants.
These fresh properties come with modern amenities and conveniences that attract a diverse crowd, from young professionals to expatriates. The allure of these new developments is hard to resist, especially when they offer features like gyms, pools, and co-working spaces that older buildings simply can't match.
Back in 2023 and 2024, we saw a clear trend: rental prices in newer developments were on the rise, while older areas struggled to keep pace. This was largely because the new properties embraced green building practices, appealing to renters who care about sustainability and the environment.
Davao City itself is transforming, with major infrastructure projects like the Davao City Bypass Road and the revamped Davao International Airport. These improvements are boosting property values in newer areas, making them even more attractive to tenants who value easy access and modern living.
For those considering a move, these newer developments offer a lifestyle upgrade with their strategic locations and enhanced facilities. It's no wonder that tenants are flocking to these areas, leaving older neighborhoods in the dust.
As the city continues to grow and modernize, the trend is clear: newer developments are the hot spots for anyone looking to rent in Davao City.
Sources: Philippine Property Hub, Davao Properties, Property Access
16) Davao City's growing middle class will drive demand for affordable housing options
The growing middle class in Davao City is set to boost demand for affordable housing options.
In 2023, families in Davao del Sur saw their average annual income rise by 12.3%, reaching PHP292,430. This extra cash means more people are likely to invest in homes. With more disposable income, the dream of owning a house becomes more attainable for many families.
Job opportunities are also on the rise, with the Davao Region boasting a 96.7% employment rate as of January 2024, which is higher than the national average. A strong job market means a more financially stable middle class, making homeownership a realistic goal for many.
The 4PH initiative is a game-changer, offering financing options that make it easier for middle-income families to buy homes. This program, along with government plans to build more housing units, is designed to meet the growing demand for affordable housing. It's a win-win for those looking to settle down in Davao City.
With these developments, Davao City is becoming a hotspot for potential homeowners. The combination of rising incomes, a strong job market, and supportive housing initiatives is creating a perfect storm for the real estate market. If you're considering buying property, now might be the time to explore your options in this vibrant city.
As the middle class continues to grow, the demand for affordable housing will only increase. This trend is not just a prediction; it's already happening, and it's reshaping the housing landscape in Davao City.
Sources: PSA Davao, PSA Davao Region, Manila Bulletin
17) Interest in traditional single-family homes in Davao City will decline as urban living gains popularity
Real estate in Davao City is changing fast, with more people eyeing urban living over traditional homes.
In the first half of 2022, condominium sales shot up by 160%, especially in bustling areas like Poblacion, Buhangin, Lanang, and Talomo. This surge is largely due to the growing urban population, where young professionals, expatriates, and retirees are flocking to the city for its convenience and lifestyle perks.
People are increasingly drawn to the city for its amenities, and consumer surveys back this up, showing a strong preference for urban living. The rise of co-working spaces and a robust rental market further highlight this trend. As of September 2024, rental prices increased by 3%, underscoring the appeal of city properties over suburban ones.
Government projects like the Davao City Public Transport Modernization Project are also making urban living more attractive by improving public transport. This initiative is a big deal for those who want to enjoy city life without the hassle of driving.
With these developments, it's clear that urban properties are becoming the go-to choice for many. The convenience of city life, combined with modern amenities, is hard to resist for those looking to buy property in Davao City.
Traditional single-family homes are seeing less interest as more people opt for the vibrant city lifestyle. This shift is reshaping the real estate landscape, making urban living the new norm.
Sources: SunStar Davao, Davao Properties, MindaNews
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18) Demand for high-end rentals in Davao City will grow as expatriates and foreign workers move to the city
Davao City is quickly becoming a favorite spot for multinational companies.
Take Open Access BPO, for example. This global outsourcing company opened its second office in Davao City in 2023, showcasing the city's advanced technology and infrastructure. These features make Davao an attractive place for businesses and their employees, drawing in more expatriates and foreign workers.
The city's economic growth is another big draw. While specific government incentives aren't detailed, the overall investment potential of Davao City is undeniable. This economic boom naturally leads to more expatriates and foreign workers moving to the area, increasing the demand for high-end rental properties.
Infrastructure development is also a key factor. The Davao Bus Project, for instance, aims to boost economic activity and improve transportation, making the city even more appealing to expatriates. This project is expected to enhance the city's connectivity, further attracting foreign workers.
The rental market in Davao City is already showing strong demand. With high occupancy rates and rising rental prices, it's clear that expatriates prefer high-end accommodations. This trend is likely to continue as more foreign workers relocate to the city.
As more expatriates and foreign workers settle in Davao City, the demand for high-end rental properties is expected to rise. This is a golden opportunity for investors looking to tap into a growing market.
Sources: Mindanews, Open Access BPO, Philippine Property Hub
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.