First of two parts
The softer condominium demand in Metro Manila is putting the spotlight on key property corridors outside of the capital region. Outside of key hubs in Luzon such as Pampanga, Bulacan, Cavite, Laguna, and Batangas, thriving localities in Visayas and Mindanao are becoming key highlights of property discussion.
Colliers Philippines believes that the entry of national players in Davao has paved the way for substantial development of integrated communities. The National Government has lined up vital infrastructure projects in the city which, once completed, should further solidify the city’s attractiveness as a residential investment hub in Mindanao. These include the Davao Coastal Road, Davao City Bypass and the expansion and modernization of Davao Airport. Hence, developers should continue with their landbanking initiatives and capitalize on the city’s improving infrastructure backbone.
The completion of these projects should further stoke interest in Davao’s office and residential markets.
Competitive office market
As of end-Q2 2026, overall vacancy in Davao reached 3%, one of the lowest vacancies outside the capital region due to sustained demand from outsourcing companies. With this level of vacancy, Davao is the only office market hub outside Metro Manila that enjoys the landlord’s market status.
Among the notable deals recorded in Davao from 2024 to H1 2026 were spaces taken up by Teleperformance, Alorica, Optum, VA Platinum, Ibex and CubeWork. These firms occupied spaces in Matina IT Park (Plaza de Luisa Development Inc.), Robinsons Cybergate Delta 1 (Robinsons Land) and The Uprise (Felcris Hotels and Resorts). Other outsourcing firms that have established their presence in the province are OP360, Concentrix, Wipro, iQor, Cloudstaff, Sutherland, and VXI.
As of end-H1 2026, Davao’s office stock reached 378,100 sq meters (4.1 million sq feet). From 2027 to 2029, Colliers sees the completion of new office towers in Davao city by Megaworld, Robinsons Land, Megaworld, and SM. Among the office towers likely to be completed during the period include SM Lanang BPO Towers 1 and 2, One Republic Plaza and Robinsons Cybergate Victoria Tower 1.Colliers Philippines believes that the increasing office transactions in Davao should partly support residential demand in the locale. The entry of national developers such as SMDC, Megaworld, Ayala Land, Robinsons Land, Filinvest Land, and Cebu Landmasters (CLI) also strengthened Davao’s position as a property investment destination in the VisMin region.
Solid residential take up
Residential developers should further test the market and even diversify and look at the viability of offering more resort and/or leisure-themed projects. In our view, Davao’s competitiveness and stature as an outsourcing hub in Mindanao, backed by robust regional economic growth, should retain the city’s attractiveness for more residential projects.
What’s interesting is that Davao is also being positioned as one of the major meetings, incentives, conferences, and exhibitions (MICE) hubs in the country. This should enable the city to attract more local and foreign hotel operators beyond 2026. In our view, more international visitors should potentially raise demand for vertical housing in the city and hep lift take up for leisure-themed residential projects.
Davao City is deemed a residential hotspot in Mindanao and is a preferred site of both end-users and investors. The sustained demand over the past few years encouraged national and homegrown property firms to invest in the city.
Colliers Philippines believes that Davao City has become a viable residential hub in Mindanao due to its competitiveness. Former Davao Mayor Rodrigo Duterte’s election as Philippine president in 2016 further raised interest in the city and has since transformed Davao into a preferred residential haven even by those from nearby cities and provinces. The 2024 Cities and Municipalities Competitiveness Index ranked Davao as the seventh most competitive in the country based on economic dynamism, government efficiency, infrastructure and resiliency. To be continued