DAVAO-BASED developer Damosa Land Inc. targets revenue growth of 50 percent to 70 percent this year driven by its residential property segment.
“Our estimate is about 50 percent to 70 percent [growth]from last year to this year,” Damosa Land vice president Ricardo Floirendo Lagdameo told reporters in a media briefing on Tuesday.
He said Damosa Land recorded revenue growth of 40 percent last year but declined to give actual revenue figures.
“Income has also been growing alongside revenues,” he said, adding that their residential business segment will be driving earnings growth.
“A lot of it is going to come from residential. That’s probably going to be number one and then followed by our commercial leasing and then followed by our office spaces,” Lagdameo said.
He noted growing demand in the Davao and Mindanao markets as the region’s population continues to rise due to a “reverse migration” trend.
“What we’ve seen over the last couple of years is that there’s been kind of a reverse migration back into the provinces, at least that’s what we’ve personally seen in Davao,” he said.
“So a lot of people who have been traditionally Manila-based people or based in the US or different parts of the world, you see them coming back into the provinces to set up — whether it[s an agri-business or an F&B [food and beverage]business or a call center,” he added.
“The economy we see now in Mindanao has become so diverse, whereas traditionally for decades it’s been based on agriculture,” Lagdameo said.
The growth across various industries in Davao City is attracting Manila-based as well as foreign investors to do business in the city, he noted.
“Davao is not a small market. The city has 1.8 million people. When you take the whole region that’s about 5 million people. So the market is quite big. So that’s why, aside from the local guys, a lot of Manila-based developers are looking at it as a next major destination as well,” he said.
Davao Region comprises five provinces: Compostela Valley, Davao del Norte, Davao del Sur, Davao Oriental, and Davao Occidental, the newly created province, with Davao City as the regional center.
With the entrance of a number of major property developers into the Davao market, Lagdameo said Damosa Land’s edge is the level of market trust it already has because it is a homegrown brand.
“To compete with the bigger players, one of the advantages we have is that we’re proudly homegrown. We know the market, the people know us. And so in the real estate business, it’s really all about trust,” Lagdameo expressed.
Asked if they plan to develop projects outside of Davao and the Mindanao area, Lagdameo explained they would like to focus on the opportunities present in their home market.
“We have looked at other opportunities in Metro Manila because we have some land bank here in Metro Manila, but we kind of took a step back and we said, let’s focus on Mindanao first because there’s still a lot of opportunities there. And so that’s why we said we would hold off first on any Metro Manila developments,” Lagdameo said.