What are the rental yields for apartments in Davao City? (2026)

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What rental yields can I realistically get from an apartment in Davao City?

What's the average gross rental yield for apartments in Davao City as of 2026?

As of early 2026, the average gross rental yield for apartments in Davao City sits around 6.5% to 6.7%, which is solid by Philippine standards and attractive for foreign investors looking at secondary cities outside Metro Manila.

The realistic range of gross rental yields in Davao City spans from about 5.5% on the low end (typically in premium towers with high purchase prices) to around 8% on the high end for well-priced units in mid-market buildings with strong rental demand.

The main factor that causes gross yields to vary significantly in Davao City is whether the condo is located along the high-demand Bajada or Lanang corridors versus the outer areas, because prime locations near Abreeza Mall, SM Lanang, and the airport command higher rents but also come with higher purchase prices that compress yields.

Compared to Metro Manila, where gross yields often fall in the 4% to 5% range due to elevated property prices, Davao City offers noticeably better returns, and it also competes favorably with other Philippine secondary cities like Cebu, where yields are similar but competition for tenants can be tighter.

What's the average net rental yield for apartments in Davao City as of 2026?

As of early 2026, the average net rental yield for apartments in Davao City typically falls around 4.5% to 4.8%, after accounting for all the costs that come with being a landlord in this market.

The realistic range of net yields that most apartment investors can expect in Davao City runs from about 4.2% on the conservative end to around 5.5% for well-managed properties with minimal vacancy and lower-than-average condo dues.

The single biggest expense category that reduces gross yield to net yield for Davao City condos is actually the combination of condo association dues and vacancy allowance, because dues are charged per square meter (often around 8% to 15% of rent for smaller units) and you should plan for roughly one month vacant per year even with good pricing.

By the way, you will find much more detailed data in our property pack covering the real estate market in Davao City.

What's the typical rent-to-price ratio for apartments in Davao City in 2026?

As of early 2026, the typical rent-to-price ratio for apartments in Davao City is around 0.50% to 0.55% per month, which means if you buy a condo for ₱5 million, you can expect monthly rent of roughly ₱25,000 to ₱27,500.

The realistic range of rent-to-price ratios in Davao City spans from about 0.35% per month for premium towers (where purchase prices are inflated relative to achievable rents) up to 0.70% per month for well-priced mid-market units in high-demand areas.

Apartment categories with the highest rent-to-price ratios in Davao City tend to be studios and compact one-bedroom units in areas like Matina, Ecoland, and parts of Buhangin, because purchase prices in these neighborhoods haven't caught up to the strong rental demand from BPO workers and young professionals.

How much rent can I charge for an apartment in Davao City?

What's the typical tenant budget range for apartments in Davao City right now?

The typical monthly tenant budget for renting an apartment in Davao City in early 2026 ranges from about ₱15,000 to ₱35,000 (roughly $250 to $590 USD, or €215 to €505 EUR), which covers the bulk of the market from entry-level studios to comfortable two-bedroom units.

For tenants targeting mid-range apartments in Davao City, the budget range is typically ₱22,000 to ₱35,000 per month (about $370 to $590 USD, or €315 to €505 EUR), and this is where you'll find most BPO professionals, couples, and small families looking for furnished condos with reliable internet.

For tenants seeking high-end or luxury apartments in Davao City, expect budgets of ₱45,000 to ₱80,000 or more per month (roughly $760 to $1,350 USD, or €650 to €1,150 EUR), though demand at this level is thinner and more sensitive to building prestige and parking availability.

We have a blog article where we update the latest data about rents in Davao City here.

What's the average monthly rent for a 1-bed apartment in Davao City as of 2026?

As of early 2026, the average monthly rent for a one-bedroom apartment in Davao City is around ₱25,000 to ₱28,000 (approximately $420 to $475 USD, or €360 to €405 EUR), based on current market listings for furnished units in decent locations.

Entry-level one-bedroom apartments in Davao City rent for about ₱18,000 to ₱22,000 per month ($305 to $370 USD, or €260 to €320 EUR), and these are typically older buildings, farther from prime corridors, or semi-furnished units in areas like Toril or outer Buhangin.

Mid-range one-bedroom condos in Davao City typically command ₱25,000 to ₱32,000 per month ($420 to $540 USD, or €360 to €465 EUR), and you'll get a fully furnished unit with air conditioning, fiber internet readiness, and access to building amenities like a pool and gym in areas like Matina Ecoland or Lanang.

High-end one-bedroom apartments in Davao City rent for ₱35,000 to ₱45,000 per month ($590 to $760 USD, or €505 to €650 EUR), and these are premium units in towers like Aeon Towers in Bajada or newer developments near Abreeza Mall with hotel-style finishes and city views.

What's the average monthly rent for a 2-bed apartment in Davao City as of 2026?

As of early 2026, the average monthly rent for a two-bedroom apartment in Davao City is around ₱32,000 to ₱38,000 (approximately $540 to $645 USD, or €465 to €550 EUR), reflecting the sweet spot for families and professionals who need more space.

Entry-level two-bedroom apartments in Davao City rent for about ₱25,000 to ₱30,000 per month ($420 to $510 USD, or €360 to €435 EUR), and these are typically compact layouts in older buildings or in neighborhoods like Toril and Mintal where prices haven't caught up to central areas.

Mid-range two-bedroom condos in Davao City typically go for ₱32,000 to ₱42,000 per month ($540 to $710 USD, or €465 to €610 EUR), and you'll get a properly sized unit with separate bedrooms, a functional kitchen, and building security in popular areas like Matina Crossing or Arezzo Place near the airport.

High-end two-bedroom apartments in Davao City rent for ₱50,000 to ₱65,000 per month ($845 to $1,100 USD, or €725 to €940 EUR), and these are premium units in the best towers with balconies, quality finishes, and often include parking in developments like Verdon Parc or prime Lanang condos.

What's the average monthly rent for a 3-bed apartment in Davao City as of 2026?

As of early 2026, the average monthly rent for a three-bedroom apartment in Davao City is around ₱50,000 to ₱60,000 (approximately $845 to $1,015 USD, or €725 to €870 EUR), though this segment has fewer listings and more variability than smaller units.

Entry-level three-bedroom apartments in Davao City rent for about ₱40,000 to ₱50,000 per month ($680 to $845 USD, or €580 to €725 EUR), and these are typically older units or those in less central locations that still offer good space for families who prioritize square meters over prestige.

Mid-range three-bedroom condos in Davao City typically command ₱55,000 to ₱70,000 per month ($930 to $1,185 USD, or €800 to €1,015 EUR), and you'll get a well-maintained family-sized unit with multiple bathrooms, proper living and dining areas, and building amenities in developments like Seawind or Camella Northpoint.

High-end three-bedroom apartments in Davao City rent for ₱80,000 to ₱120,000 per month ($1,355 to $2,035 USD, or €1,160 to €1,740 EUR), and these are the executive rentals with premium finishes, multiple parking slots, and often serviced apartment features in the top buildings.

How fast do well-priced apartments get rented in Davao City?

A well-priced apartment in Davao City typically gets rented within 2 to 6 weeks for studios and one-bedrooms, while two-bedroom units take around 4 to 8 weeks, and larger three-bedroom condos can sit for 6 to 12 weeks before finding the right tenant.

The typical vacancy rate for apartments in Davao City hovers around 8% to 12% annually for well-managed properties, which translates to roughly one month of vacancy per year if you price correctly and market through the right channels.

The main factors that cause some apartments to rent faster than others in Davao City are fiber internet availability (a must-have for BPO and remote workers), proximity to SM malls and the airport corridor, and whether the building allows flexible lease terms, because many renters in Davao are on project-based contracts and need 6-month options.

And if you want to know what should be the right price, check our latest update on how much an apartment should cost in Davao City.

Which apartment type gives the best yield in Davao City?

Which is better for yield between studios, 1-bed, 2-bed and 3-bed apartments in Davao City as of 2026?

As of early 2026, studios and compact one-bedroom units typically offer the best rental yields in Davao City, followed by two-bedrooms in the middle, and three-bedroom units generally producing the lowest yields due to higher purchase prices and thinner demand.

The typical gross rental yield range by apartment type in Davao City is roughly 7% to 8% for studios, 6.5% to 7.5% for one-bedrooms, 5.5% to 6.5% for two-bedrooms, and 5% to 6% for three-bedroom units, though well-located properties in any category can outperform these ranges.

The main reason studios and one-bedrooms outperform in Davao City is that the city's rental demand is heavily driven by BPO workers, young professionals, and students who have strong purchasing power for their household size but don't need large units, so they're willing to pay a premium per square meter for convenience and location.

Which features are best if you want a good yield for your apartment in Davao City?

The features that most positively impact rental yield in Davao City are reliable fiber internet availability (Converge or PLDT Fiber are tenant favorites), inverter air conditioning in every room, proximity to SM Lanang or Abreeza Mall within 10 minutes, and having a practical furnishing package that includes a washing machine and proper kitchen setup.

In Davao City, mid-level floors (around floors 5 to 15) tend to rent fastest because tenants want to avoid ground-floor noise and security concerns, but also don't want to deal with elevator waits during peak hours in very tall buildings, plus mid-floors often get better natural ventilation.

Apartments with balconies or outdoor space definitely command higher rents in Davao City (often 10% to 15% more), especially in buildings facing Samal Island views or the city skyline, because the tropical climate makes outdoor space a genuine lifestyle amenity rather than just a nice-to-have.

Building features like 24/7 security, working elevators, and a pool are essentially mandatory in Davao's condo rental market, but parking is the real yield driver because car ownership is high in Davao and tenants will pay significantly more (often ₱3,000 to ₱5,000 extra per month) for a dedicated slot.

Which neighborhoods give the best rental demand for apartments in Davao City?

Which neighborhoods have the highest rental demand for apartments in Davao City as of 2026?

As of early 2026, the neighborhoods with the highest rental demand for apartments in Davao City are Bajada (especially near Abreeza Mall), Lanang (near SM Lanang Premier and the airport), Matina and Ecoland (near SM Ecoland), and parts of Sasa close to the Samal ferry terminal.

The main demand driver that makes these Davao City neighborhoods attractive is the concentration of BPO offices, call centers, and IT parks along JP Laurel Avenue and the Lanang corridor, because these employers generate thousands of renters who prioritize commute time over everything else.

The typical vacancy rate in these high-demand Davao City neighborhoods is lower than the citywide average, with well-priced units often finding tenants within 2 to 4 weeks, compared to 6 to 8 weeks in less central areas.

One emerging neighborhood that is gaining rental demand momentum in Davao City is Buhangin near Seawind Condominium and the new developments along the airport approach road, because it offers newer buildings at lower prices while still being just 10 minutes from Lanang and the airport.

By the way, we've written a blog article detailing what are the current best areas to invest in property in Davao City.

Which neighborhoods have the highest yields for apartments in Davao City as of 2026?

As of early 2026, the neighborhoods with the highest rental yields for apartments in Davao City are Matina and Ecoland, parts of Buhangin and Sasa near the airport, and the downtown edges of Poblacion where purchase prices are still reasonable relative to achievable rents.

The typical gross rental yield range in these top-yielding Davao City neighborhoods is around 7% to 8.5%, compared to 5.5% to 6.5% in premium areas like Bajada and Lanang where purchase prices are significantly higher.

The main reason these neighborhoods offer higher yields is that property prices haven't fully caught up to the rental demand spillover from the prime corridors, meaning you can buy a condo for ₱90,000 to ₱120,000 per square meter and still rent it at rates competitive with buildings that cost ₱150,000 to ₱200,000 per square meter.

Should I do long-term rental or short-term rental in Davao City?

Is short-term rental legal for apartments in Davao City as of 2026?

As of early 2026, short-term rental (Airbnb-style) is not banned citywide in Davao City, but it is treated as a tourism-related accommodation activity that requires local compliance, and your condominium building's house rules can prohibit it regardless of what the city allows.

The main legal requirements for operating a short-term rental apartment in Davao City include registering with the city's tourism office, securing a business permit if you operate regularly, and potentially obtaining Department of Tourism accreditation if you market as a tourism accommodation.

For Airbnb-style rentals in Davao City, you should be aware that the city government explicitly recognizes online booking platforms like Airbnb and Agoda in its tourism business permit processing, meaning they expect compliance rather than looking the other way.

By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Davao City.

What's the gross yield difference short-term vs long-term in Davao City in 2026?

As of early 2026, short-term rentals in Davao City can generate gross yields of around 7% to 10% compared to 5.5% to 8% for long-term rentals, but the gap shrinks significantly once you factor in the higher operating costs of STR.

The typical gross yield range for short-term rentals in Davao City is 7% to 10% assuming active management, while long-term rentals sit at 5.5% to 8%, based on current market data showing average daily rates around ₱1,900 to ₱2,200 and occupancy rates of 40% to 45%.

The main additional costs that reduce the net yield advantage of short-term rentals in Davao City include cleaning fees between guests (often ₱500 to ₱1,000 per turnover), higher utility consumption, platform commissions (typically 3% to 15%), supplies and amenities, and potentially higher management fees if you outsource guest handling.

To outperform a long-term rental in Davao City, a short-term rental typically needs to achieve at least 50% to 55% occupancy at market ADR, because below that threshold the higher operational costs and management headaches outweigh the revenue premium.

What costs will eat into my net yield for an apartment in Davao City?

What are building service charges as a % of rent in Davao City as of 2026?

As of early 2026, building service charges (condo association dues) for apartments in Davao City typically run around 10% to 15% of monthly rent for smaller units (roughly ₱2,500 to ₱4,500 per month, or $40 to $75 USD, €35 to €65 EUR), though this percentage drops for larger units where rent is higher relative to floor area.

The realistic range of building service charges in Davao City condos spans from about 8% of rent in basic buildings with minimal amenities to 18% or more in premium towers with multiple pools, gyms, and 24/7 concierge services.

Services that typically justify higher-than-average condo dues in Davao City include backup generator systems (critical during typhoon season power outages), resort-style amenities like infinity pools and function rooms, and professional property management with on-site maintenance staff.

What annual maintenance budget should I assume for an apartment in Davao City right now?

The typical annual maintenance budget apartment owners should assume in Davao City is around ₱30,000 to ₱50,000 per year (approximately $510 to $845 USD, or €435 to €725 EUR), which covers routine repairs, appliance servicing, and periodic refreshes.

The realistic range of annual maintenance costs in Davao City runs from about ₱20,000 for newer units in good condition ($340 USD, €290 EUR) up to ₱70,000 or more for older units or those with high tenant turnover ($1,185 USD, €1,015 EUR).

The most common maintenance expenses apartment owners face annually in Davao City are air conditioning servicing and repairs (the humid climate wears out AC units faster), repainting every 2 to 3 years due to moisture and tenant wear, and replacing water heaters and kitchen appliances that degrade quickly in the tropical environment.

What property taxes should I expect for an apartment in Davao City as of 2026?

As of early 2026, the typical annual property tax for a mid-market condo in Davao City ranges from about ₱8,000 to ₱25,000 per year (approximately $135 to $420 USD, or €115 to €360 EUR), which is lower than many foreign buyers expect because taxes are based on assessed value rather than market value.

The realistic range of property taxes in Davao City runs from around ₱5,000 per year for smaller or older units ($85 USD, €72 EUR) up to ₱40,000 or more for premium condos in high-value assessments ($680 USD, €580 EUR), depending on the property's classification and location.

Property taxes for apartments in Davao City are calculated by multiplying the assessed value (typically a fraction of fair market value set by the assessor) by the applicable tax rate, which for residential condos is usually around 1% to 2% of assessed value under the Local Government Code framework.

There are some property tax considerations for apartment owners in Davao City, including potential partial exemptions for owner-occupied primary residences (though this typically doesn't apply to rental investment properties) and periodic reassessments that can increase your tax bill as property values rise.

If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Davao City.

How much does landlord insurance cost for an apartment in Davao City in 2026?

As of early 2026, the typical annual landlord insurance cost for an apartment in Davao City ranges from about ₱3,000 to ₱10,000 per year (approximately $50 to $170 USD, or €43 to €145 EUR) for basic coverage of contents, improvements, and liability.

The realistic range of annual landlord insurance costs in Davao City spans from around ₱2,000 for minimal coverage on a small unit ($34 USD, €29 EUR) up to ₱15,000 or more for comprehensive coverage including natural perils add-ons and higher sum insured amounts ($255 USD, €217 EUR).

What's the typical property management fee for apartments in Davao City as of 2026?

As of early 2026, the typical property management fee for long-term rental apartments in Davao City is around 8% to 10% of monthly rent (roughly ₱2,000 to ₱3,500 per month on a ₱25,000 rent, or $34 to $60 USD, €29 to €50 EUR), with full-service management at the higher end.

The realistic range of property management fees in Davao City runs from about 6% for basic tenant-finding and rent collection services up to 12% or more for comprehensive management that includes maintenance coordination, bill payments, and regular property inspections.

Services typically included in standard property management fees in Davao City are tenant screening and lease execution, monthly rent collection and remittance, coordination of basic repairs with building maintenance, and handling tenant communications and minor issues.

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.