Boasting a buoyant local economy, an investor-friendly business environment, impressive infrastructure projects and property developments, and a capable local government, it is no wonder that Davao City is one of the hottest real estate markets in the Philippines today. This is the reason why Makati-based Pinnacle Real Estate Consulting Services, Inc., the fastest-growing real estate brokerage and consultancy firm in the Philippines, chose the city as its newest hub.

Partnering with local firm Amalgated Properties & Management Corp. (APMC), Pinnacle will soon open its office in downtown Davao City to cater to the local market. Pinnacle offers a wide range of services, including general brokerage (sales and leasing), property management, property appraisal, asset management, research and consulting, title transfer, and payment services. APMC, on the other hand, is part of the Amalgated Group of Companies, with businesses in real estate leasing, retail and distribution, financial services, property and service management, and importing and exporting.

Why Davao?

According to Pinnacle president and managing director Michael Mabutol, the decision to open an office in Davao is an easy one to make. “The city’s local economy has always been buoyant. In fact, data from the Philippine Statistics Authority shows that the regional economy of the Davao Region grew 8.6 percent in 2018, higher than the national GDP growth rate of 6.2 percent for the same year.”

Pinnacle’s Market Vista report, “Eye on Davao,” cited sustainable and friendly business environment established by the local government and major infrastructure set to be completed in the next few years as the main ingredients of the city’s success. “More companies are drawn in putting up business in the city and increasing their stakes,” said the report.

In fact, registered businesses in Davao for 2017 reached a total capitalization of Php272 billion, up by 18 percent from Php230 billion in 2016. “2017’s capitalization growth for Davao City was very remarkable as the average total increase in capitalization is only 4 percent in the previous 3 years,” according to Pinnacle.

Davao City was also conferred the 4th Most Competitive City for 2018 in the Highly Urbanized category during 6th Regional Competitiveness Summit. This is an initiative spearheaded by the Department of Trade and Industry (DTI) to recognize local government units that show exemplary performance in the ?eld of economy, governance, infrastructure, and resiliency.

Infra projects to buoy Davao’s economy

A number of infrastructure projects are currently underway in Davao City and surrounding areas, chief of which is the 44.6-kilometer Davao City Bypass Road. This ambitious project will include a tunnel section and will start from the Davao–Digos of the Pan-Philippine Highway in Toril and will terminate intersecting the Davao–Agusan National Highway in Panabo City.

Another signi?cant road development is the ongoing 19.8-kilometer Davao City Coastal Road Project running along the shoreline from Tolomo to Poblacion district. This project is expected to be completed by 2021.

With key infrastructure set to be delivered over the next few years, local and national property developers have been very busy changing the city’s landscape and skyline dramatically. The Philippines’ well-known property giants are bringing their signature brands into Davao’s real estate market.

One of the most anticipated projects is Ayala Land’s Azuela Cove, the company’s 25-hectare mixed-use joint venture with the Alcantara Group. The project will feature residential, of?ce, and retail spaces, plus St. Luke’s Medical Center, one of the premier healthcare providers in the country.

Not so distant is the 11-hectare Davao Park District project by Megaworld Corporation. Sitting on the former Lanang Golf and Country Club beside SM Lanang Premier, this project is envisioned to become Davao’s newest central business district. In keeping with the developer’s tradition of self-contained mini cities, Davao Park District will feature ?oor spaces suitable for IT and business process outsourcing (IT-BPO) occupiers and traditional corporate of?ces. The township will also have residential towers, lifestyle mall, and retail strips, among others.

“With these developments, Davao is definitely an economic force to reckon with,” said Mabutol. Already, Pinnacle has bagged a number of projects in the city, including an exclusive partnership with NCCC to property manage the former Victoria Plaza Mall, which has now been renamed as NCCC Mall Davao.