Davao City has quietly become one of the Philippines’ most attractive destinations for digital nomads, ranking #200 out of 366 cities in a global digital nomad index with an overall score of 60 out of 100. That ranking places it firmly on the map for location-independent professionals looking for a base that balances affordability with modern connectivity. For local landlords and property investors, this growing presence is beginning to reshape expectations around rental demand, pricing, and the types of units that lease fastest.
What makes Davao stand out is not just the low cost of living — a comfortable monthly budget including city centre rent, mid-range dining, and public transport comes to approximately $619, which is 48 percent below the global average of $1,180. That kind of affordability, combined with stable fibre-optic internet in key business districts and easy access to natural attractions like Samal Island and Mount Apo, creates a compelling package for remote workers. The city’s reputation for safety, maintained through strict local governance and low crime rates, adds another layer of appeal for foreign workers who prioritise peace of mind. For anyone tracking Davao’s property trends, the question is no longer whether digital nomads are coming — it’s how their preferences are shifting the rental landscape.
What Digital Nomads Actually Look for in a Rental
Digital nomads are not a monolithic group, but their rental priorities cluster around a few non-negotiable features. The most important is internet connectivity — Davao’s average download speed of 58 Mbps and upload speed of 27 Mbps are considered excellent by global standards, with a reliability score of 7.1 out of 10. That matters because a remote worker whose video calls drop or whose file uploads stall will not renew a lease. Properties in buildings with verified fibre connections or those located near the city’s 29 coworking spaces tend to attract more interest and can justify slightly higher rents.
Affordability is the second pillar. A one-bedroom apartment in the city centre averages $435 per month, while moving outside the centre drops that to $266. For context, that is significantly cheaper than comparable units in Manila or Cebu, where decent apartments can start at much higher price points. Budget-conscious nomads who cook at home and live outside the centre can manage on as little as $401 per month total. This price sensitivity means that mid-range and budget-friendly units — not luxury condos — are the ones turning over fastest in the current market. Landlords who price units competitively and highlight internet specs in listings are seeing shorter vacancy periods.
How the Influx Is Reshaping Davao’s Rental Market
The arrival of digital nomads creates a new dynamic between local landlords and tenants who have different expectations than traditional renters. Unlike long-term local tenants who may prioritise proximity to family or schools, nomads value good internet connection and coworking spaces, which can drive up prices in specific areas where those amenities are concentrated. This is not a city-wide price surge — it is a targeted effect in neighbourhoods with strong connectivity and short-term lease flexibility.
The Philippine government’s official launch of a “Digital Nomad” visa in 2025, allowing stays of up to two years renewable, formalises what was already happening informally. This policy shift signals that the trend is not a passing fad — it is a structural change in how the country approaches remote work tourism. For Davao specifically, the visa makes it easier for nomads to commit to longer stays, which benefits landlords who prefer tenants who stay three to six months rather than just a few weeks.
Local infrastructure is adapting. Since 2022, the Philippines has seen a notable increase in coliving spaces in major urban centres and island destinations, with the total number of identified spaces doubling between end of 2021 and mid-2024. A majority regularly shows full occupancy during high tourist season. Davao’s 29 coworking spaces, with average speeds of 45 Mbps and day passes starting at $9, provide the infrastructure that makes longer stays viable. For property investors, this suggests that units near established coworking hubs or within buildings that offer dedicated workspace amenities will hold their value better than isolated units.
What Investors and Landlords Often Miss About This Trend
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| Metric | Davao Score | Global Average | What It Means |
|---|---|---|---|
| Cost of Living | 48% below average | $1,180/month | Strong affordability advantage for budget-conscious nomads |
| Internet Speed | 58 Mbps | 67 Mbps | Slightly below global average but still excellent for remote work |
| Safety Score | 53/100 | 67/100 | Below global average; nomads may prioritise secure buildings |
| Healthcare Quality | 53/100 | — | Moderate; long-stay nomads may seek private health insurance |
One common misunderstanding is that digital nomads will pay a premium for any unit in Davao simply because it is cheaper than Manila. In reality, they are highly price-sensitive and compare options across multiple cities globally. Davao’s safety score of 53 out of 100, which is below the global average of 67, means that security-conscious nomads may gravitate toward buildings with 24-hour security, gated access, and good lighting. Properties that cannot offer these features may struggle to attract the premium segment of the nomadic market.
The Internet Expectation Gap
While Davao’s average internet speed is solid, it is still below the global average of 67 Mbps. That gap matters more than the raw number suggests. A nomad who works with large files or runs multiple video streams simultaneously will notice the difference. Landlords who invest in upgrading building-wide fibre infrastructure or who offer a dedicated router in each unit can differentiate their property from competitors that rely on standard residential connections. The coworking spaces in Davao average 45 Mbps, roughly matching residential connections, so there is no significant speed advantage to working outside the home — meaning a well-connected apartment is a direct substitute for a coworking membership.
The Coliving Competition
The rise of coliving spaces presents both competition and opportunity for traditional landlords. These spaces offer fully furnished units, community events, and flexible lease terms that appeal directly to nomads. For individual unit owners, the response is not to compete on community — it is to compete on privacy, space, and location. A one-bedroom unit with a dedicated workspace corner, good natural light, and a quiet environment can outperform a coliving dorm room even at a higher price point. The key is knowing which segment of the nomadic market you are targeting: budget travellers who want community, or experienced remote workers who need quiet focus.
The Visa Effect on Lease Duration
The new Digital Nomad visa allows stays of up to two years, renewable. This changes the calculus for landlords who previously assumed nomads would only stay a few weeks. A tenant on a one-year visa is closer to a traditional long-term tenant than a tourist, but still values flexibility. Landlords who offer 3-month, 6-month, and 12-month lease options with clear renewal terms will capture more of this market than those who insist on standard 12-month contracts. The tradeoff is that shorter leases require more frequent turnover and marketing, but they also allow for periodic rent adjustments.
Practical Steps for Landlords and Property Investors
If you own or are considering buying rental property in Davao, the digital nomad trend offers a clear set of actionable strategies. These are not theoretical — they are grounded in what the data shows about how this demographic behaves.
Verify and Market Your Internet Speed
This is the single most important factor. List your actual download and upload speeds in every property listing. If your building has fibre, say so. If you can offer a dedicated line for the unit, even better. Nomads compare internet specs the way traditional renters compare square footage. A unit with verified 50 Mbps+ speeds will generate more inquiries than an identical unit where the listing says “good internet.” Consider running a speed test and including a screenshot in your listing photos.
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Offer Flexible Lease Terms
Standard 12-month contracts deter nomads who may only know their plans three months ahead. Offer options: monthly, quarterly, and semi-annual leases with clear pricing for each. A slightly higher monthly rate for short-term stays is expected and acceptable — nomads budget for it. What they avoid is being locked into a long lease with steep penalties for early termination. If you use a standard contract, add a clause allowing early termination with 30 days notice and a small fee.
Furnish for Remote Work
A furnished unit is non-negotiable for this market, but not all furnishings are equal. Prioritise a proper desk and ergonomic chair over decorative items. Ensure the Wi-Fi router is in the same room as the desk, not hidden in a cabinet. Provide at least one power strip with surge protection. These small investments cost very little but directly address the daily needs of a remote worker. A unit that looks like a home office first and a vacation rental second will outperform one that looks like a generic Airbnb.
Target Neighbourhoods Near Coworking Hubs
Davao’s 29 coworking spaces are concentrated in specific areas. Properties within a 15-minute walk or short tricycle ride of these hubs are more attractive to nomads who want the option of working outside their apartment. If your unit is farther out, consider offering a small monthly stipend toward a coworking membership as a leasing incentive — this costs you less than a rent reduction and directly addresses the nomad’s core need. For a deeper look at which Davao neighbourhoods are delivering the strongest returns, read our analysis of Davao’s highest-yielding rental neighbourhoods.
Frequently Asked Questions
Do digital nomads really pay more than local tenants? ▾
Is the Digital Nomad visa already available? ▾
Should I convert my long-term rental into a short-term nomad unit? ▾
How does Davao compare to Cebu or Manila for nomads? ▾
What happens if the nomad trend slows down? ▾
What to Watch for Next
The digital nomad trend in Davao is still in its early stages, but the infrastructure and policy framework are falling into place. The new visa, the growth of coworking spaces, and the city’s natural advantages create a foundation that is likely to attract more remote workers over the next few years. For landlords and investors, the smartest approach is to focus on connectivity, flexibility, and realistic pricing — not on chasing a premium that may not materialise. The units that perform best will be those that solve the specific problems nomads face: finding a quiet place with fast internet, at a price that makes sense compared to global alternatives. If this was useful, you might also want to read our analysis of Davao’s condo saturation point.
Sources
Davao’s Highest-Yielding Rental Neighbourhoods — A data-driven breakdown of which areas in Davao are delivering the best returns for rental property investors.
Mindanao Digital Nomads: Hotspots and Hammocks. VisMin.ph, 2025.
Digital Nomads Philippines: Impact on the Rental Market. Jarnias Cyril, 2025.
Davao Digital Nomad City Profile. NomadRanker, 2025.
