Having a Davao City office is one of the best things you can do for your business—and here’s why.
Mindanao has been attracting both local and international investors in recent years because of its impressive potential growth for development, from infrastructure-building to property development.
This is why it is quickly becoming one of the most anticipated booming economies in the Philippines.
And at the heart of its economic progress stands Davao City, its central growth point.
Davao City, dubbed as the ‘King City of the South, is considered as Mindanao’s center of commerce, trade, and industry.
It has been thrust into the limelight in recent years because of the historic presidential win of its former mayor, President Rodrigo Duterte. However, that’s not the only reason why tourists and investors convene there.
Here are more reasons behind Davao City’s rapid economic growth and why having a Davao City office is a good idea.
Why Davao City’s Economy is Booming
Continuous growth and progress
Davao City, being one of the emerging commercial cities of the South, has significant contributions to the overall development of Mindanao.
One of the factors that make it one of the best places for investments is its promising business climate.
Davao City’s excellent performance in these areas:
- infrastructure development,
- economic dynamism,
- disaster resiliency, and
- government efficiency
This makes Davao the most competitive and highly urbanized city in Mindanao.
In fact, the city has seen an astounding 19% increase in its number of tourists in 2018 alone. And there are no signs of it slowing down in the near or distant future.
The influx of visitors opens up opportunities in many business sectors, including real estate. Having a Davao City office will ensure that your company also gets to enjoy these business opportunities.
Rapid economic growth
The Davao Region (Region XI) posted an 8.6% growth, making it one of the fastest-growing economies in all 17 regions across the Philippines.
The rapid growth in its economy can be attributed to the robust performance of Davao City’s services sector. This is evident in the following:
- public transportation,
- retail trade,
- real estate,
- public administration,
- and financial intermediation.
Expanding to the Davao Region with a Davao City office will help ensure that you get to ride the wave of the city’s economic growth.
Davao City’s economy has shown consistent excellent performance since 2014.
Based on the data gathered by Davao City Investment Promotion Center (DCIPC), over 70% of the Davao Region’s gross regional product (GRP) came from this city. This makes it the second-fastest growing economy in the country.
The city’s strategic geographic location is one of the reasons behind its success.
With its own international airport, it is highly accessible not just to the locals but also to foreign visitors. Land transportation is just as convenient through the Philippine-Japan Friendship Highway.
Expanding your business into the Davao Region by having a Davao City office gives you the opportunity to tap into its robust market.
A vast fertile land, coupled with good climate, makes Davao City the perfect location for investments in food production and agribusiness.
Investors can also take advantage of its abundant supply of raw materials, the availability of agricultural products, and low labor costs.
With the help of the Davao City Investment Promotion Center (DCIPC), getting a Davao City office will be easier.
This prime marketing arm of the local government is in charge of the city’s economic growth and development by promoting it as one of the best investment destinations in the country.
Some of the services offered by the DCIPC include:
- Assistance in securing business licenses and permits
- Business matching and investment counseling
- Business information databanking
- Referral for raw material and workforce sourcing
Furthermore, Davao City offers excellent services, manpower, and products at a very competitive price.
In fact, it provides one of the most affordable rental rates for both residential and commercial, as well as labor cost, utility fees, and raw material cost, in the Philippines.
Business owners who want to maximize their return on investments may benefit from opening a Davao City office.
However, if your budget does not allow you to rent a traditional office space, there are still plenty of other options for you.
Davao City also has its own fair share of co-working spaces. For example, Skynora offers premium office spaces at the heart of the city. With them, you get an office space in a prime location and state-of-the-art facilities without costing you an arm and a leg.
Prime MICE destination
The local government is making all efforts to make the city as a top Meetings, Incentives, Conferences, Exhibition (MICE) destination to entice more businesses to open a Davao City office.
As a matter of fact, the city has already hosted local and international conventions, which has significantly contributed to the surge of visitors in the city. The city has seen 2.34 million tourist arrivals between January to November 2019.
Property development is another attractive investment opportunity for investors in the city. The Davao City real estate industry is expected to be on the rise with its constant population growth from continued local migration.
Likewise, you get to tap into the city’s vast resources, such as its cutting-edge communication facilities and reliable power supply, when you get a Davao City office.
Davao City offers the best of many worlds to its visitors, residents, and investors. Aside from its vibrant culture and rich heritage, it is also a great place to run a business.
Starting a business and getting a Davao City office is not that difficult, especially with the help of DCIPC.
However, if you want to cut on rental costs—especially if you are a start-up—there are co-working spaces you can use.
Skynora is one of Davao City’s best office space providers. Business owners and digital nomads alike can all benefit from its premium office spaces found in a prime location—at a really affordable price.