Mindanaoโs real estate sector is experiencing an unprecedented boom, fueled by major infrastructure projects, urban expansion, and rising investor confidence, according to Mindanao Development Authority (MinDA) Secretary Leo Tereso A. Magno.
Speaking at the Filipinos in Institutional Real Estate (FIIRE) Davao Symposium, Magno highlighted the regionโs rapid growth, particularly in Davao City, where demand for residential and commercial properties is soaring.
โMindanaoโs real estate market is expanding at an extraordinary pace, driven by strategic infrastructure developments, increasing business activity, and a growing population. Investors and homebuyers alike are recognizing the immense opportunities here,โ Magno said.
Magno cited MinDA data indicating that occupancy rates for low- to high-end condominiums in Davao City have reached an impressive 95 to 100 percent. Even luxury properties are attracting buyers from outside Mindanao.
โDavao is becoming a prime real estate destination, not just for locals but also for investors from across the country and abroad. The cityโs stable economy, security, and business-friendly environment make it an attractive choice,โ he added.
Recent market reports reinforce this optimism. Data from Colliers Philippines show a consistent rise in condominium sales and township developments, with an annual completion rate of approximately 3,400 condominium units.
Notably, sales surged by 160% in the first half of 2022 compared to the previous year, driven by factors such as the cityโs role as an emerging outsourcing hub, ongoing infrastructure projects like the Mindanao Railway, and the strong presence of national developers.
Industry leaders echo Magnoโs sentiments. Chris Malazarte, President of the Accredited Real Estate Salespersons of the Philippines, described Davao City as โa disciplined and well-planned market, making it a darling of investors.โ
While Davao leads the real estate surge, other Mindanao cities are also attracting attention. A 2023 study by UProperty PH highlights Cagayan de Oro as a key player due to its dynamic economy and strategic position as Northern Mindanaoโs gateway.
The cityโs average house price stands at PHP 45,600 per square meter, followed by Butuan City at PHP 44,100 per square meter. Tagum City, a rising investment hub in Davao del Norte, offers a more affordable market at PHP 2,100 per square meter, making it an attractive option for homebuyers and investors alike.
Despite the real estate boom, Magno underscored the importance of sustainable development, emphasizing that rapid urbanization must be balanced with responsible resource management.
โThe influx of property investments is a testament to investor confidence, but we must also address the increasing demand for water, energy, and other essential resources. Growth must be sustainable,โ he stressed.
To meet these challenges, Magno reiterated MinDAโs advocacy for renewable energy investments to maintain Mindanaoโs energy surplus.
โWe are pushing for a greater shift toward renewable energy to reduce reliance on fossil fuels and ensure long-term sustainability,โ he explained.
He also reaffirmed the national governmentโs commitment to climate action, citing President Ferdinand Marcos Jr.โs strong stance on renewable energy as a pillar of the countryโs environmental agenda.
Magno urged real estate stakeholders, including organizations like FIIRE, to join forces in promoting responsible development.
โLetโs work together to build not just profitable developments, but communities that are environmentally and socially sustainable. The future of Mindanaoโs real estate lies in responsible and forward-thinking growth,โ he concluded.
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