The Rise of Davao City's Real Estate Market: Tips for Investors

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Davao City, located in the southern part of the Philippines, has been identified by Colliers International as one of the key areas in the country's real estate market to watch out for. The city's residential market is projected to have a 6.8% annual growth rate from 2022 to 2025, according to the global real estate services company. This growth is attributed to various factors, including the city's booming economy, government infrastructure projects, and the rising popularity of Davao as a tourist and investment destination.
One indicator of the city's residential market growth is the increase in average prices of condominium units and house and lot prices in 2021. Condominium unit prices went up by 4.3% year-on-year, while house and lot prices rose by 3.7%. The vacancy rate for condominiums was at 11.9% as of end-2021, but is expected to decline to 7.8% by end-2025.
Davao has several districts that are popular for residential properties, including Buhangin, Lanang, Matina, and Maa. These areas offer a variety of property types, from condominium units to house and lots.
Some of the notable developers operating in Davao include Alsons Development and Investment Corporation (Alsons Dev), Johndorf Ventures Corporation (JVC), Camella Homes, Filinvest Land Inc., DMCI Homes, Avida Land Corp., and Megaworld Corp. These developers have various ongoing and upcoming projects in the city, catering to different market segments.
Aside from the private sector's efforts, the government's Build Build Build program has also contributed to the city's property market growth. The program aims to boost the country's infrastructure development, and Davao is among the areas that are expected to benefit from it. Some of the infrastructure projects that are expected to boost the attractiveness of Davao as a property destination include the Mindanao Railway Project (MRP), Davao Coastal Road Project (DCRP), Davao City Bypass Construction Project (DCBCP), and Davao International Airport Expansion Project (DIAEP). These projects are seen to improve connectivity, mobility, and accessibility in and around Davao, making it more convenient for residents, businesses, and tourists.
In conclusion, Davao City's residential market is poised for growth in the coming years, driven by various factors such as the city's economic and tourism boom, government infrastructure projects, and the efforts of private developers. As the city continues to develop and thrive, it is expected to attract more investors and homebuyers, making it a key player in the Philippines' real estate market.