The Philippine property market has been one of Southeast Asia’s best performing during the past few years. Metro Manila has received a lot of attention, but cities such as Cebu and Davao also emerged as real estate investment destinations. And while the COVID-19 pandemic has stalled growth in the short term, one developer believes a full Davao property market recovery will happen in 2021.
Damosa Land First Vice-President and Chief Development Officer Ricardo F. Lagdameo noted the business process outsourcing sector, a key driver of the region’s property market, will pick up once the current situation has returned to normal. This will boost the local economy including real estate.
“We feel that for 2020, just like with any other market, there’s probably going to be some softening in the real estate sector. But we like to focus on the opportunities and the silver lining… 2021 I think is going to be a very strong rebound,” Lagdameo explained during an interview with BusinessWorld.
Davao property market recovery led by the residential sector
Residential real estate is expected to play a key part in the Davao property market recovery. Home prices have increased significantly between 2017 and 2019 due to high occupancy rates and limited supply. This is one reason experts remain bullish on the long term prospects of Davao real estate.
A pair of residential projects are currently being developed by Damosa Land with these expected to be completed no later than the first quarter of 2021. The company continues to focus on this segment while also exploring opportunities in the office and industrial sectors.
“One segment that we continue to be bullish about, and our sales over the last couple of months will validate that, is residential. I think it is going to be good, it’s going to be resilient, not just for Davao but for the rest of the Philippines,” Lagdameo told the website.