Mindanao’s real estate sector is experiencing an unprecedented surge, driven by major infrastructure projects, rapid urban expansion, and growing 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 emphasized the region’s rapid growth, particularly in Davao City, where demand for residential and commercial properties continues to rise.
“Mindanao’s real estate market is expanding at an extraordinary pace, fueled by strategic infrastructure developments, increasing business activity, and a growing population. Investors and homebuyers alike recognize the immense opportunities here,” Magno stated.
Data from MinDA highlights that occupancy rates for low- to high-end condominiums in Davao City have reached an impressive 95 to 100 percent, with luxury properties attracting buyers from outside the region. Magno noted that the city’s stable economy, security, and business-friendly environment have made it a prime real estate destination for both local and international investors.
Market research supports this outlook. Colliers Philippines reported a steady increase in condominium sales and township developments in Davao City, 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 the city’s growing role as an outsourcing hub and ongoing infrastructure projects like the Mindanao Railway.
Industry leaders echo Magno’s optimism. Chris Malazarte, President of the Accredited Real Estate Salespersons of the Philippines, described Davao City as a disciplined and well-planned market, making it highly attractive to investors.
Beyond Davao, other Mindanao cities are also drawing attention from real estate players. A 2023 study by UProperty PH identified Cagayan de Oro as a key player in Northern Mindanao, with an average house price of PHP 45,600 per square meter. Butuan City follows at PHP 44,100 per square meter, while Tagum City, a rising investment hub in Davao del Norte, offers more affordable options at PHP 2,100 per square meter.
Despite the booming real estate sector, Magno underscored the importance of sustainable development, stressing the need to balance rapid urbanization with responsible resource management.
“The 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,” he said.
To address these challenges, MinDA is advocating for increased investments in renewable energy to sustain Mindanao’s energy surplus. Magno reiterated the national government’s commitment to climate action, citing President Ferdinand Marcos Jr.’s strong stance on renewable energy as a key component of the country’s environmental strategy.
Magno also urged real estate stakeholders, including organizations like FIIRE, to collaborate in promoting responsible development.
“Let’s work together to build not just profitable developments, but communities that are environmentally and socially sustainable. The future of Mindanao’s real estate lies in responsible and forward-thinking growth,” he concluded.
