Mindanao real estate surges amid infrastructure boom – Magno

DAVAO CITY – Mindanao’s real estate sector is experiencing robust growth, driven 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 emphasized the region’s accelerating development—particularly in Davao City, where the demand for residential and commercial properties is reaching unprecedented levels.

“Mindanao’s real estate market is expanding at an extraordinary pace, propelled by strategic infrastructure developments, increasing business activity, and a growing population. Investors and homebuyers are recognizing the immense opportunities here,” Magno said.

MinDA data show that occupancy rates for low- to high-end condominiums in Davao City have reached 95 to 100 percent, with luxury properties attracting buyers from outside the region and abroad.

“Davao is becoming a prime real estate destination due to its stable economy, security, and business-friendly environment,” Magno noted.

Industry data from Colliers Philippines support this view, showing a consistent rise in condominium sales and township developments. The city is seeing an annual completion rate of around 3,400 units, and sales surged by 160% in the first half of 2022 compared to the previous year’s period. Contributing factors include Davao’s emergence as a BPO and outsourcing hub, ongoing infrastructure projects such as the Mindanao Railway, and the presence of major national developers.

Chris Malazarte, President of the Accredited Real Estate Salespersons of the Philippines, described Davao City as “a disciplined and well-planned market, making it a darling of investors.”

While Davao City is at the forefront, other Mindanao cities also draw investor attention. A 2023 study by UProperty PH identifies Cagayan de Oro as a rising star due to its dynamic economy and status as Northern Mindanao’s gateway. Average house prices stand at PHP 45,600 per square meter, followed by Butuan City at PHP 44,100 and Tagum City at PHP 2,100, offering affordability to budget-conscious buyers and investors.

Despite the boom, Magno stressed the need for balanced and sustainable development.

“The influx of property investments reflects investor confidence but also heightens the demand for essential resources like water and energy. Growth must be sustainable,” he said.

He reiterated MinDA’s push for renewable energy investments to preserve Mindanao’s energy surplus and reduce dependence on fossil fuels. Magno also echoed President Ferdinand Marcos Jr.’s commitment to climate action, citing the administration’s renewable energy agenda as central to the country’s sustainable development goals.

Magno called on real estate stakeholders, including organizations like FIIRE, to champion responsible and inclusive development.

“Let’s work together to build profitable developments and sustainable and livable communities. The future of Mindanao real estate depends on forward-thinking and responsible growth,” he concluded.