Why now is the right time to invest in Mindanao
Mindanao is a region of vast opportunities.
Key areas like Northern Mindanao and Davao Region have diverse economies that are also among the fastest growing in the Philippines.
In 2024, Northern Mindanao—composed of Bukidnon, Camiguin, Lanao del Norte, Misamis Oriental and Misamis Occidental—recorded a 6 percent economic growth while Davao posted a faster 6.3 percent expansion. What stands out is that both regions recorded growths faster than the national average of 5.7 percent.
Aside from vast natural resources, the two regions are teeming with great potential for property development. National players looking to expand their office and residential footprints continue to landbank in Davao and Cagayan de Oro, the capital of Misamis Oriental.
Among the infrastructure projects likely to be completed in these regions include the Davao Coastal Road, Davao City Bypass and the expansion of the Davao and Laguindingan Airports.
Competitive office, residential landscape
As of end Q3 2025, office vacancy in Davao reached an all-time low of 4 percent. It also has one of the lowest vacancies outside the capital region due to sustained demand from outsourcing companies and limited available stock.
With this level of vacancy, Davao is the only office hub outside Metro Manila that enjoys the landlord’s market status.
As of end Q3, Davao recorded 14,900 sqm of office space transactions, accounting for 7 percent of the total deals in Areas Outside the National Capital Region (AONCR). Notable deals recorded from 2024 to September 2025 included those for Teleperformance, Alorica, Optum, VA Platinum, Ibex Global and CubeWork.
Davao is also undeniably a popular residential hub in Mindanao and the preferred site of property end-users and investors. The sustained demand over the past few years has encouraged national and homegrown developers to launch condominium projects and massive horizontal residential developments in Davao.
The mid-income segment (P3.6 million to P12 million) dominated total condominium take-up in Davao from 2024 to H1 2025. However, residential developers should further test the market and even diversify, with the rising viability for upscale and luxury projects offering high-end amenities and capital value appreciation potential.
For Davao’s house and lot (H&L) market, the affordable to mid-income projects (P2.5 million to P10 million) are recording strong take-up among local investors and remittance-receiving households.
Cagayan de Oro: On the radar of national developers
As of end Q3 2025, Cagayan de Oro’s office stock reached 54,000 sqm, with SM, Limketkai Sons Inc., Ayala Land, and Robinsons Land accounting for more than two-thirds of the city’s total supply.
In 2024, Cagayan de Oro recorded 5,100 sqm of office space transactions, down 62 percent from 13,300 sqm in 2023 due to limited supply. In our view, this presents a challenge and an opportunity for office developers, who should further explore the feasibility of building BPO-ready office space here.
Among the notable deals we recorded from 2023 to the first nine months of 2025 were for spaces occupied by OfficePartners360, Ubiquity Global Services, Regus, and Xinyx Design Consultancy Services.
Other outsourcing firms that have established their presence here are Outsource Access, Teleperformance, Concentrix, SupportZebra, and Qualfon. This proves CDO’s ability to attract large outsourcing tenants given its skilled manpower and relatively cheaper cost of living.
The affordable to mid-income segments (P2.5 million to P12 million) are the most viable segments in Cagayan de Oro’s condominium market, accounting for more than 90 percent of total launches and take-up from 2024 to H1 2025. National players with existing condominium projects in Cagayan de Oro include SMDC, Ayala Land, Filinvest Land, Vista Land, Cebu Landmasters, and Pueblo de Oro.
For Cagayan de Oro’s H&L market, the economic projects (P580,000 to P2.5 million) are well-received among local end-users.
Supply of lot only units is currently limited in Cagayan de Oro, presenting gargantuan opportunities for national and homegrown developers to take advantage of strong horizontal demand in the city and explore further landbanking to launch massive residential enclaves.
What’s next for Mindanao property
Colliers Philippines is optimistic of the vast upside potential for Davao and Cagayan de Oro property markets. We see improving infrastructure further raising land and property values while improving the two cities’ viability for more masterplanned communities.
Davao and Cagayan de Oro are well-positioned to reap property gains beyond 2025. In our view, these localities will remain as top choices of developers and investors betting big on Mindanao’s property potential.
