Manila is outgrowing its infrastructure and it seems President Rodrigo Duterte’s home city is the next investment hub.
Research by CBRE shows that national property developers are shifting their sights to Davao along with other cities outside of Manila. And, with Duterte’s railway project goals, it will be easier to commute to and from the city center.
Julius Guevara, director for research and advisory at Colliers International Philippines, credited this shift to new investment hubs due to Manila’s excessive growth, “It is bursting at the seams so it’s very apparent that we have to focus development elsewhere… Alternative cities have to be pursued, and these have to be designed very well.”
There’s proof to the anticipated boom in Davao, as real estate giant Ayala Land has invested US $212 million so far and MegaWorld Corp plans to pour in US $318 million over the next 5 years to develop a new business district in the city. Not to mention, Guevara a rise in condo sales estimated to be about 2,000 units sold per year and that hotel occupancy rates nearly topped 100 percent as well.
We won’t be surprised to see other major developers hop on Duterte’s train, so to speak, and start investing in Davao too.