Davao’s dynamism is seen not just in its residential market but also in its office segment. Among the major business hubs outside of Metro Manila, Davao has the lowest vacancy rate and this enticing property firms to build more office strategically across Davao.
The dynamism of Davao’s property market is now enticing more property firms to develop and expand in the city. This is transforming Davao’s property market and should enable the city to attract a more diverse group of investors moving forward.
More office leasing in integrated communities
Colliers now sees companies looking for space in integrated communities to strengthen their business continuity plans. Firms are increasingly gravitating toward these developments to maximize their live-work-play amenities.
In Davao City, about 70% of the new office space due to be completed between 2026 and 2029 will be located within integrated communities. The live-work-play concept will continue to gain traction in the city.
Colliers sees Davao as a competitive office location outside Metro Manila due to its skilled workforce. The city produces about 20,000 college graduates every year, with nearly two-thirds earning degrees in Business, Health and Welfare, Education, and Information and Communication Technology (ICT). The city is also considered an educational hub in Mindanao.
Capturing demand for township developments
Colliers has observed an aggressive launch of township developments outside Metro Manila as developers take advantage of the growing interest from occupants to expand in provincial locations. In 2025, Colliers saw continued office space absorption outside the capital region as total provincial deals reached 242,700 sq meters, or 20% of total office transactions across the country. Davao accounted for about 20,900 sq meters (224,900 sq feet) of total deals. In our view, this should partly support residential demand in Davao moving forward.
Colliers recommends that developers assess the viability of Davao for more integrated communities featuring residential, office, and retail components. The completion of big-ticket infrastructure projects such as Davao City Coastal Road, Davao City Bypass Road, and Samal Island-Davao City Connector Bridge should also help prop up the demand for mixed-used developments in Davao.
Ongoing township projects include Cebu Landmasters’ Davao Global Township (DGT) in Matina. The first phase of the integrated community will feature residential condominiums, office towers, a cultural center, and the DGT City Center which will feature retail shops. Another township project in Davao is Alsons Development’s Northtown which features a residential enclave, commercial blocks, and Davao’s first CityMall branch. Meanwhile, Ayala Land has two masterplanned communities in the locale, namely Ascenda and Azuela Cove.
Convenience, accessibility, and connectivity
Residential investors and end-users continue to put a premium on accessibility and convenience. The 15-minute community concept appeals to them, especially now that everything is fast-paced. Residential projects’ proximity to offices, malls, and other institutional facilities such as schools and hospitals is highly important especially to a new breed of residential investors including millennials.
Colliers recommends that developers continue highlighting the advantages of living within integrated communities, and to consider improving amenities and facilities in their projects to meet constantly changing buyer preferences.
In our view, Davao will remain a popular hub for these differentiated masterplanned communities.