Davao City is no longer just the "King City of the South" by reputation; it is becoming a fiscal fortress for savvy investors. As of April 16, 2026, the city government has announced an expanded package of tax incentives designed to attract high-impact investments in sectors ranging from tourism to electric vehicles. However, this pro-investment atmosphere is being met with a cautious "wait-and-see" attitude from local realtors who are currently resisting a proposed 300-800% increase in property market values slated for implementation in early 2026.
Aggressive Fiscal Incentives for New Entrants
The Davao City government has officially moved to amend its Investment Incentive Code through Ordinance No. 0148-25, which is set to take effect on April 28, 2026. Under the leadership of Councilor Myrna Dalodo-Ortiz, the new measure offers a staggered five-year business tax exemption for eligible projects, including a full 100% exemption for the first three years. These benefits extend to a wide range of priority areas, such as the electric vehicle (EV) sector, theme parks, retirement villages, and sports tourism, positioning Davao as a forward-looking hub that leverages national acts like the EV Industry Development Act to its local advantage.
Stakeholder Resistance to Skyrocketing Market Values
While the city woos new capital, the established real estate industry is raising a formal challenge against the "Proposed Schedule of Market Value (SMV) for 2026." Industry leaders from the Chamber of Real Estate and Builders' Association (CREBA) Davao have expressed concerns that the sudden 300-800% increase in market values—and as much as 1,200% for some agricultural lands—will negatively impact the city's economic competitiveness. Stakeholders argue that such a dramatic leap in the valuation basis for taxes threatens the viability of affordable housing initiatives and could deter the very investors the city’s new incentives are designed to attract.
A Boom in Modern Urban Living and Hospitality
Despite the valuation disputes, the demand for modern, convenient living spaces in Davao continues to reach new heights. As of April 18, 2026, the rental market for condominiums in districts like Bajada, Lanang, and Ecoland is experiencing a surge, driven by professionals seeking to mitigate the rising costs of fuel and transportation through urban living. This demand is being met by aggressive expansions from local developers like Damosa Land, which is currently scaling its portfolio through integrated communities and landmark hospitality projects like the TRYP by Wyndham Samal, reinforcing the Davao–Samal economic corridor as a premier destination for both residents and tourists.
