UMVA has learned that Davao is poised for a seismic shift in its office landscape, with a staggering 85,000 square meters of premium workspace set to flood the market between 2026 and 2029.
The surge will largely be fueled by the business process outsourcing sector, which is expected to claim 35% of the new demand, while information technology will capture another 25%, creating a perfect storm of high-tech ambition.
In a bold move, a leading real estate conglomerate is projected to spearhead the expansion, unveiling a sprawling 25,000‑square‑meter complex that will redefine the city’s skyline in early 2027.
Other heavyweight developers are not to be outdone, with plans that could push Davao’s total office supply to a record 381,000 square meters by 2029, cementing its status as a regional powerhouse.
The city’s fiscal prowess, boasting a 2024 revenue of over three million pesos, underscores its growing economic clout and makes it the second most productive highly urbanized city in Mindanao.
Occupancy rates have already reached an impressive 96% in 2025, leaving only 12,000 square meters vacant—a dramatic drop from the previous year's 15,000.
Net take‑up of 10,000 square meters in 2025, achieved without additional supply, signals a market that is both hungry and highly efficient.
Back in 2022, the market saw its peak with 58,000 square meters of net take‑up against 35,000 square meters of new supply, totaling 93,000 square meters.
First‑quarter data reveals that information technology and business process management giants are already commandeering 75% of the available space, leaving only a quarter for traditional offices.
Lease rates are on a steady climb, projected to range between 500 and 900 pesos per square meter, a noticeable jump from the previous year’s 500 to 800 range, with an average of 640 pesos expected to dominate the market.
