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Everything you need to know before buying real estate is included in our The Philippines Property Pack
Davao City is one of the fastest-growing property markets in the Philippines outside Metro Manila, and foreign buyers are increasingly paying attention to this southern hub.
Whether you want steady rental income, long-term appreciation, or a lifestyle purchase near the beach, understanding Davao City's distinct micro-markets is essential before you commit your money.
This guide breaks down everything you need to know about Davao City real estate in 2026, from the priciest waterfront zones to the most affordable outer districts, and we constantly update this blog post to keep it current.
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.
What's the Current Real Estate Market Situation by Area in Davao City?
Which areas in Davao City have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas for residential property in Davao City are the Lanang waterfront zone near Azuela Cove, the Bajada-Obrero corridor close to Abreeza Mall, and the Matina Crossing-Ecoland belt along Quimpo Boulevard.
In these premium locations, condominium prices typically range from 95,000 to 175,000 pesos per square meter, with the Lanang waterfront commanding the highest premiums due to its scarcity and lifestyle appeal.
Each of these areas commands high prices for different reasons:
- Lanang waterfront: only master-planned waterfront estate in Davao City, near the airport
- Bajada-Obrero: strongest walkability to hospitals, schools, and the traditional CBD
- Matina Crossing-Ecoland: emerging "second CBD" gravity with major retail and township development
Which areas in Davao City have the most affordable property prices in 2026?
As of early 2026, the most affordable residential areas in Davao City are Toril District (particularly Sirawan barangay), Tugbok District (especially Mintal), Calinan District, and the far northern barangays of Buhangin District like Tibungco.
In these outer districts, you can find townhouses and house-and-lot properties priced between 40,000 and 75,000 pesos per square meter of floor area, which is roughly half the cost of close-in locations.
However, each affordable area comes with trade-offs: Toril and Calinan offer space but require longer commutes to the city center, Tugbok's far sections have limited public transport options, and Tibungco in northern Buhangin lacks the commercial amenities found closer to Lanang.
You can also read our latest analysis regarding housing prices 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.
Which Areas in Davao City Offer the Best Rental Yields?
Which neighborhoods in Davao City have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods with the highest gross rental yields in Davao City are Obrero and the Bajada edge (6% to 9%), Matina Crossing along Quimpo Boulevard (6% to 8.5%), Maa near established condo clusters (6% to 8%), and budget-priced units in the Sasa-Lanang corridor (6.5% to 9.5% when bought below replacement cost).
Across Davao City as a whole, typical gross rental yields for residential investment properties range from 5% to 8%, which is competitive compared to Metro Manila where yields have compressed below 5% in many areas.
Each high-yielding neighborhood has a specific reason for outperforming:
- Obrero-Bajada edge: deep tenant pool from nearby hospitals, universities, and CBD offices
- Matina Crossing: renters attracted by SM Ecoland access and new township development
- Maa: affordable rents draw value-conscious professionals from multiple employment nodes
- Sasa-Lanang budget units: strong demand if you avoid oversupplied buildings
Finally, please note that we cover the rental yields in Davao City here.
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Which Areas in Davao City Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Davao City perform best on Airbnb in 2026?
As of early 2026, the top-performing Airbnb neighborhoods in Davao City are the Lanang-Sasa corridor near the airport and SM Lanang, Poblacion District in the downtown core, and the Ecoland-Matina belt close to SM City Davao.
In these well-located areas, a well-managed studio or one-bedroom unit can generate between 25,000 and 50,000 pesos per month in short-term rental revenue, though this varies significantly with occupancy rates and seasonal demand.
Each neighborhood attracts short-term guests for different reasons:
- Lanang-Sasa corridor: airport proximity makes it ideal for business travelers and weekend visitors
- Poblacion District: walkable to downtown attractions and convenient for tourists exploring the city
- Ecoland-Matina belt: draws families attending events, tournaments, and mall-based activities
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Davao City.
Which tourist areas in Davao City are becoming oversaturated with short-term rentals?
The areas in Davao City showing the clearest signs of short-term rental oversaturation are high-density condo clusters in the Lanang-Sasa corridor and popular mid-market buildings in the Matina-Ecoland belt where many units compete as "Airbnb-ready" properties.
In these oversaturated pockets, you can find dozens of nearly identical studio listings within a single building, all competing on price and driving down average nightly rates and occupancy for everyone.
The clearest sign of oversaturation is when weekday occupancy drops noticeably while hosts increasingly rely on price cuts to attract bookings, and some buildings have seen HOA restrictions tighten on short-term rentals entirely.
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 Areas in Davao City Are Best for Long-Term Rentals?
Which neighborhoods in Davao City have the strongest demand for long-term tenants?
The neighborhoods in Davao City with the strongest long-term rental demand are Lanang and nearby Sasa, the Bajada-Obrero-Poblacion fringe, Matina Crossing-Ecoland along Quimpo Boulevard, and Maa.
In these high-demand areas, well-priced units typically rent within two to four weeks of listing, compared to outer districts where vacancies can stretch to two months or longer.
Each neighborhood attracts a distinct tenant profile:
- Lanang-Sasa: corporate employees, airport-linked professionals, and mall retail workers
- Bajada-Obrero: hospital staff, university students, and CBD office workers
- Matina-Ecoland: young professionals, BPO employees, and families near schools
- Maa: budget-conscious renters who still need reasonable access to multiple job centers
What makes these neighborhoods especially attractive to long-term tenants in Davao City is their combination of employment access and daily convenience, whether that means proximity to SM Lanang and the airport in Lanang, or walkable errands and hospital access in Bajada-Obrero.
Finally, please note that we provide a very granular rental analysis in our property pack about Davao City.
What are the average long-term monthly rents by neighborhood in Davao City in 2026?
As of early 2026, average long-term monthly rents in Davao City range from around 8,000 pesos for basic units in outer districts to over 60,000 pesos for two-bedroom condos in premium Lanang locations.
In the most affordable neighborhoods like Toril, Tugbok-Mintal, and Calinan, entry-level studios and one-bedroom apartments typically rent for 8,000 to 15,000 pesos per month.
In average-priced neighborhoods like Maa and parts of Matina-Ecoland, mid-range one-bedroom condos rent for 17,000 to 28,000 pesos per month, while two-bedrooms range from 26,000 to 45,000 pesos.
In the most expensive neighborhoods like Lanang near SM Lanang and Azuela Cove, or the Bajada-Obrero core, high-end two-bedroom condos command 35,000 to 60,000 pesos per month, with premium units reaching higher.
You may want to check our latest analysis about the rents in Davao City here.
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Which Are the Up-and-Coming Areas to Invest in Davao City?
Which neighborhoods in Davao City are gentrifying and attracting new investors in 2026?
As of early 2026, the neighborhoods in Davao City showing the clearest signs of gentrification and investor interest are the Matina area around Matina Crossing and nearby Talomo barangays, the broader Lanang zone influenced by Azuela Cove development, and select south-coastal barangays benefiting from improved Coastal Road access.
These gentrifying neighborhoods in Davao City have seen annual price appreciation in the range of 5% to 10% over recent years, outpacing the citywide average as new development changes their character and attracts higher-income residents.
Which areas in Davao City have major infrastructure projects planned that will boost prices?
The areas in Davao City best positioned to benefit from infrastructure-driven price growth are the north coastal corridor from Lanang to Sasa (benefiting from the Samal Island connector bridge), and southern coastal barangays in Talomo District (benefiting from the Davao City Coastal Road).
The most significant projects are the DavSam Bridge connecting Davao City to Samal Island (46% complete as of late 2025, targeting 2028 opening), and the Davao City Coastal Road which is opening in segments and improving southern access patterns.
Historically in Davao City, areas that gained significant new road or bridge connectivity have seen price appreciation of 15% to 30% in the years following project completion, though the Mindanao Railway remains a longer-term prospect with uncertain funding.
You'll find our latest property market analysis about Davao City here.
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.
Which Areas in Davao City Should I Avoid as a Property Investor?
Which neighborhoods in Davao City with lots of problems I should avoid and why?
Rather than entire neighborhoods, investors in Davao City should avoid specific risk patterns: STR-dependent condo buildings in oversupplied pockets of Lanang-Sasa and Matina-Ecoland, far-periphery locations in outer Tugbok, Calinan, and Toril bought purely for low prices, and any land-based investment structured through informal foreign ownership workarounds.
Each problem area has a specific issue:
- Oversupplied STR buildings in Lanang-Sasa: revenue drops fast when occupancy dips, HOA rule changes can kill your strategy
- Far outer Tugbok beyond Mintal: weak tenant demand, long vacancies, difficult resale
- Remote Calinan and Toril pockets: limited public transport, few local employment options
- Informal land ownership structures: constitutional restrictions make "clever" workarounds legally risky
For these areas to become viable investments, oversupplied buildings would need significant demand growth or supply reduction, outer districts would need better transport links and local job creation, and land ownership would require constitutional amendments that are not currently on the horizon.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Davao City.
Which areas in Davao City have stagnant or declining property prices as of 2026?
As of early 2026, price stagnation in Davao City is most visible in mid-market condo clusters with heavy investor ownership (particularly buildings with many similar studio and one-bedroom units for sale) and in outer subdivision developments where many comparable houses compete for buyers.
These stagnating micro-markets have seen prices essentially flat or growing below 2% annually over the past two to three years, compared to 5% to 8% growth in better-positioned locations.
The underlying causes vary by area:
- Mid-market condo clusters in Lanang-Sasa: too many identical units listed simultaneously, buyers negotiate hard
- Investor-heavy buildings in Matina-Ecoland: rental yields compress when everyone tries to rent or sell at once
- Outer subdivision stock in Tugbok and Toril: limited buyer pool, high substitutability between similar houses
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Which Areas in Davao City Have the Best Long-Term Appreciation Potential?
Which areas in Davao City have historically appreciated the most recently?
The areas in Davao City that have shown the strongest price appreciation over the past five to ten years are the Lanang waterfront influence zone around Azuela Cove, the close-in Bajada-Obrero core near Abreeza Mall, and the Matina Crossing-Ecoland belt benefiting from new township development.
Here is how each area has performed:
- Lanang waterfront zone: estimated 8% to 12% annual appreciation driven by master-planned estate scarcity
- Bajada-Obrero core: estimated 6% to 9% annual growth due to limited central supply and strong demand
- Matina-Ecoland belt: estimated 7% to 10% annual gains as the "second CBD" identity solidifies
The main driver of above-average appreciation in these areas is the combination of infrastructure investment and anchor development gravity, meaning properties near Azuela Cove and Davao Global Township benefit from the "halo effect" of these master-planned projects attracting higher-income residents and businesses.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Davao City.
Which neighborhoods in Davao City are expected to see price growth in coming years?
The neighborhoods in Davao City expected to see the strongest price growth from 2026 to 2029 are the Lanang-Sasa coastal corridor, the Matina belt around Davao Global Township, and selected Talomo District barangays with improved Coastal Road access.
Projected growth rates vary by neighborhood:
- Lanang-Sasa coastal corridor: 6% to 10% annually as DavSam bridge nears completion in 2028
- Matina belt: 5% to 8% annually as mixed-use density increases and township matures
- Talomo coastal-access pockets: 4% to 7% annually as Coastal Road segments open
The single most important catalyst for future price growth in these neighborhoods is the completion of the DavSam bridge to Samal Island, which will unlock tourism connectivity and fundamentally change the value proposition of north-coastal Davao City properties.
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 Do Locals and Expats Really Think About Different Areas in Davao City?
Which areas in Davao City do local residents consider the most desirable to live?
The areas in Davao City that local residents consistently consider most desirable are Lanang (especially near Azuela Cove and SM Lanang), Bajada-Obrero for its central convenience, and Matina-Maa for its balance of accessibility and neighborhood feel.
Each area appeals to locals for specific reasons:
- Lanang near Azuela Cove: modern lifestyle amenities, newer housing stock, mall and airport access
- Bajada-Obrero: walkable daily errands, close to hospitals, schools, and the traditional city center
- Matina-Maa: family-friendly neighborhoods with improving retail and transport options
The residents who typically live in these locally-preferred areas are upper-middle-class Davaoeno families in Lanang, professionals and long-time residents in Bajada-Obrero, and younger families and mid-level professionals in Matina-Maa.
Local preferences in Davao City largely align with what foreign investors target, though locals tend to value established neighborhood character and family networks more than pure investment returns.
Which neighborhoods in Davao City have the best reputation among expat communities?
The neighborhoods in Davao City with the strongest reputation among expat communities are the Lanang-Sasa corridor near the airport and SM Lanang, the Bajada area close to the traditional city center, and close-in Matina-Ecoland near major malls and services.
Expats prefer these neighborhoods for practical reasons:
- Lanang-Sasa: easy airport access for travel, newer condos with modern amenities, familiar mall environment
- Bajada: central location with straightforward navigation, close to medical services
- Matina-Ecoland: convenient mall-based lifestyle, good value compared to Lanang premiums
The typical expat profile in these neighborhoods includes retirees seeking affordable coastal living, remote workers attracted by Davao City's lower cost of living compared to Manila, and business travelers on extended stays.
Which areas in Davao City do locals say are overhyped by foreign buyers?
The areas in Davao City that locals most commonly consider overhyped by foreign buyers are the premium Lanang waterfront zone around Azuela Cove and popular "Airbnb buildings" in the Lanang-Sasa and Matina corridors.
Locals believe these areas are overvalued for specific reasons:
- Premium Lanang waterfront: prices assume Manila-level rents that local tenants will not pay
- Popular Airbnb condo clusters: occupancy is more variable than promotional materials suggest
- New developments far from established nodes: infrastructure promises often take longer than buyers expect
Foreign buyers are typically attracted to these areas by lifestyle marketing, waterfront aesthetics, and Airbnb income projections that locals view more skeptically based on actual market experience and more conservative yield expectations.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Davao City.
Which areas in Davao City are considered boring or undesirable by residents?
The areas in Davao City that residents most commonly consider boring or undesirable are far-periphery locations in outer Toril District, remote parts of Tugbok District beyond Mintal, and distant Calinan District barangays.
Residents find these areas less desirable for straightforward reasons:
- Outer Toril: far from malls, restaurants, and entertainment, limited public transport options
- Far Tugbok beyond Mintal: inconvenient commutes, fewer commercial services nearby
- Remote Calinan: quiet rural character appeals to some, but lacks urban amenities most residents want
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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) RPPI | The Philippine central bank's official methodology for the national house price index. | We used it to frame the macro housing price context for early 2026. We also used it to ensure our Davao micro-area estimates stay realistic. |
| City Government of Davao District Directory | The official city government reference for Davao's administrative districts and barangays. | We used it to anchor every neighborhood mention to real, official place names. We also used it to keep geography precise and mappable. |
| Lamudi Philippines | One of the country's largest property marketplaces with current asking prices and rents. | We used it as a real-time market indicator for rent and price bands by neighborhood. We also used it to calculate gross yield ranges across Davao City. |
| AirDNA Davao City | A widely used industry dataset for short-term rental supply, occupancy, and daily rates. | We used it to quantify Airbnb performance instead of relying on anecdotes. We also used it to identify oversupply risk in specific condo clusters. |
| Colliers Philippines | A major global real estate consultancy with published research standards. | We used it to validate that demand outside Metro Manila is a key market theme. We also used it as a professional cross-check against live asking prices. |
| Supreme Court E-Library (Condominium Act) | Official legal text repository for Philippine laws. | We used it to confirm that foreigners can own condo units subject to the 40% cap. We also used it to keep ownership guidance legally accurate. |
| Ayala Land Azuela Cove | Primary source developer page for Davao's most important premium waterfront estate. | We used it to precisely locate the Lanang waterfront micro-market. We also used it to explain premium pricing zones with a concrete anchor project. |
| Davao Global Township | Official project site for the Matina CBD anchor development. | We used it to anchor the Matina "new CBD" story to a real master-planned development. We also used it to connect nearby areas to emerging office and retail gravity. |
| SunStar Davao | Major regional newsroom reporting concrete DPWH infrastructure progress. | We used it to identify which corridors will benefit from Samal Island connectivity. We also used it to date-stamp infrastructure timelines accurately. |
| Philippine News Agency | Government newswire that reports official agency statements and tourism figures. | We used it to ground the tourism demand story behind short-term rentals in official DOT numbers. We also used it to explain which areas benefit from visitor flows. |
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