When the whole is greater than the sum of its parts…
CAGAYAN DE ORO CITY- There’s just no stopping the economic juggernaut that is this capital city of Northern Mindanao.
As the leading growth driver in powering the region’s economy past the trillion peso mark in 2024 with 28.3 percent of the P1.04 trillion total, Cagayan de Oro has elevated Northern Mindanao as one of only six regions in the Philippines to surpass the trillion-peso mark.


The region also ranked sixth among the 18 regions in terms of fastest-growing economies and was one of only seven to post growth above the national average. Its per capita gross regional domestic product breached P200,000—the third highest in the country, after the National Capital Region and the Cordillera Administrative Region, a a 5.1 percent increase from the previous year.

UK-based Oxford Economics ranked Cagayan de Oro as the sixth largest urban economy in the Philippines in the list of 1,000 world’s largest urban economies for the second year in a row after Manila (#206), Cebu (#470), Angeles (#488), Bacolod (#518) and Davao (#519), ahead of Dagupan (#581), General Santos (#835) and Zamboanga (#861).

Cagayan de Oro City has made the list of 1,000 world’s largest urban economies for the second year in a row based on the 2025 Oxford Economics Global Cities Index. The city ranked sixth among nine Philippine cities in the list ranking 577th globally, dropping from last year’s 487th ranking. Other cities in the list are Manila (#206), Cebu (#470), Angeles (#488), Bacolod (#518), Davao (#519), Dagupan (#581), General Santos (#835) and Zamboanga (#861)
Cagayan de Oro is the only city in the Visayas and Mindanao which ranked among the Top 12 of the Philippines Highly Urbanized Cities (HUCs) with the Highest Gross Domestic Product per Capita in 2024.

It ranked second only to Baguio among the Top Richest Highly Urbanized Cities in the Philippines outside Metro Manila in terms of GDP Per Capita in 2024, according to the Philippine Statistics Authority.

According to the Bureau of Local Government Finance, Cagayan de Oro City also ranked second to Davao City in terms of Locally Sourced Revenue in 2024 with P3.15 Billion. With only 40% of Davao City’s population and a mere 17% of its land area, Cagayan de Oro LGU generated 36% more revenues per capita, attesting to the productivity and regulatory compliance of Kagay-anons and their establishments.

Bangko Sentral ng Pilipinas (BSP) records further buttress this metric. In 2024, Cagayan de Oro had total bank deposits of P163.39 billion, second to Davao City in Mindanao (which had P336.29 billion), but ahead of other Mindanao urban centers like Cotabato City (P117.78 billion), Zamboanga City (P88.95 billion), and General Santos City (P64.91 billion).


Related to this, Kagay-anons, enjoy a relatively hefty average family income P28,000 per month. In terms of family size, Cagayan de Oro’s average 3.8, while Northern Mindanao’s is 4.2.
A Bustling Property Hub in Mindanao
Joey Roi Bondoc of Collier Philippines believes that Cagayan de Oro’s competitiveness as an investment hub makes the city one of the most ideal business locations in Mindanao. The city’s location makes it a key property investment destination in northern Mindanao. The city is also on the radar of outsourcing firms, making it an ideal location for residential end-use especially for outsourcing employees as well as overseas Filipino workers (OFWs).
As noted by Colliers Philippines, Cagayan de Oro’s property market has been attracting interest from national players who have been launching and building residential towers, as well as the city’s office market, while foreign hotel brands are coming in to cash in on its growing tourism potential.
The Laguindingan International Airport (AIC) is being expanded and modernized as another international gateway. Colliers believes that this should further entice national and homegrown property firms to launch more residential projects in the city.

A rising BPO destination
As of end-H1 2025, Cagayan de Oro’s (CDO) office stock reached 54,000 sq meters, with SM, Limketkai Sons, Inc., Ayala Land, and Robinsons Land accounting for more than two-thirds of CDO’s total office supply. In 2024, Cagayan de Oro recorded 5,100 sq meters (54,900 sq feet) of office space transactions, down 62% from the 13,300 sq meters (143,500 sq feet) in 2023 due to limited office supply.
From 2023 to H1 2025, among the notable deals were spaces taken up by OfficePartners360, Ubiquity Global Services, Regus, and Xinyx Design Consultancy Services. These firms occupied spaces in SM City CDO Downtown Tower and Limketkai Module 2 Building. Other outsourcing firms that have established their presence in the province are Outsource Access, Teleperformance, Concentrix, SupportZebra, and Qualfon.
As of end-Q1 2025, vacancy in Cagayan de Oro reached 22.7%, the lowest since we started recording in Q2 2023. As of end-H1 2025, net take-up in Cagayan de Oro reached 1,900 sq meters (20,400 sq feet), up from the 800 sq meters (8,600 sq feet) of negative net take-up a year ago.
Improving infra to boost residential take-up
Colliers Philippines believes that Cagayan de Oro’s competitiveness as an investment hub makes the city one of the most ideal business locations in Mindanao. The city is also on the radar of outsourcing firms, making it an ideal location for residential end-use, especially for outsourcing employees as well as Overseas Filipino Workers (OFWs).
The affordable to mid-income segments (PHP2.5 million to PHP12 million) are the most viable segments in CDO’s condominium market, accounting for more than 90% of total launches and take-up in the locale from 2024 to H1 2025. National players with existing condominium projects in CDO include SMDC, Ayala Land, Filinvest Land, Vista Land, Cebu Landmasters, and Pueblo de Oro.

For CDO’s house-and-lot (H&L) market, the economic projects (PHP580,000 to PHP2.5 million) are well-received among local end-users, especially for projects located in the areas of Gran Europa Uptown, Lumbia, and Iponan. National and VisMin-based developers with house-and-lot projects are Ayala Land, Vista Land, Robinsons Land, Cebu Landmasters, Pueblo de Oro, Liberty Land, and Johndorf Ventures.

For the lot-only market, the luxury segment (PHP4 million and above) accounted for almost 99% of total take-up from 2024 to H1 2025. Supply of lot-only units is currently limited in CDO. Ayala Land, Robinsons Land, Pueblo de Oro, OB3 Realty, and A Brown Company are the only property firms with existing lot-only projects in the city.
Another big national player moving into the city is Megaworld Corp which aims to start the development of its 117-hectare Upper Central integrated lifestyle community through its subsidiary Global-Estate Resorts, Inc. (GERI) and has allocated an initial P5 billion to develop the entire integrated lifestyle community in the next ten years.
“Ever since, we have already set our eyes on Cagayan de Oro City because this is the gateway to many parts of Northern Mindanao. For the past years, our group has been carefully evaluating the concept of development that we want to put in this bustling city. Now is the perfect time to take part in the booming real estate industry of this side of Mindanao,” Megaworld Executive Director Kevin Andrew L. Tan said.
The Upper Central is located along J.R. Borja Road in Barangays Gusa and Indahag, overlooking Downtown Cagayan de Oro. The township is 10 to 15 minutes away from the city’s downtown area and less than an hour away from Laguindingan International Airport.
Highlighted by views of Macajalar Bay and the Malasag Mountain Range, the township will have residential villages, a pedestrianized commercial and shophouse district, mixed-use developments, and its own town center.
The township will feature a central park, landscaped open spaces, viewing decks, mountain and bike trails, and an adventure park, with sloping terrain reaching up to 245 meters above sea level.
A thriving leisure hub
From 2025 to 2029, Colliers expects the delivery of nearly 1,100 foreign-branded hotel rooms in Cagayan de Oro. The foreign brands that will be establishing presence in the city are Radisson Blu, Citadines, and Dusit Princess. Sheraton and Dusit Thani have also expressed interest in expanding in CDO.




Cagayan de Oro recorded average hotel occupancies of between 60% and 70% as of end-2024, already far from the 10%-25% occupancy in 2020 and 2021. In our view, CDO’s occupancy will likely be sustained due to the steady demand from domestic and business travelers.
Northern Mindanao posts 6% growth in 2024
As the economic dynamo powering Northern Mindanao, Cagayan de Oro played a leading role in helping Northern Mindanao breach 6% in 2024.
“Northern Mindanao has demonstrated a truly resilient economy, achieving its growth target even amidst national and global challenges, which reflects a remarkable stability and adaptability across our key sectors,” said Department of Economy, Planning and Development (DEPDev) Undersecretary Carlos Bernardo O. Abad Santos during the Philippine Economic Briefing held October 20, 2025 in Cagayan de Oro City.
Abad Santos said all five provinces and two highly urbanized cities in Northern Mindanao registered economic growth in 2024.

Iligan City grew fastest at 8.8 percent, followed by Camiguin (8.6 percent), Misamis Occidental (7.5 percent), and Cagayan de Oro City (6.8 percent). All four areas recorded growth rates higher than the regional average.
He added that Cagayan de Oro City and Bukidnon remained the region’s top two growth drivers, contributing 28.3 percent and 25.7 percent of the total regional output in 2024, respectively.
In terms of sectoral contributions, Bukidnon, known as the region’s food basket, contributed the largest share to the total AFF sector output at 69.0 percent. Misamis Oriental, home to major heavy industries and manufacturing firms, accounted for 27.0 percent of the Industry sector output—the highest in the region.
Cagayan de Oro City remained the top contributor in the Services sector, generating 38.3 percent of the total output and reinforcing its role as the regional center.
“Northern Mindanao has long been a vital contributor to the country’s development — dynamic, diverse, and forward-looking. With its strategic location, strong economy, and rich resources, it continues to be a key growth hub and gateway of opportunity for Mindanao and the rest of the country,” Abad Santos noted.
Sectoral Performance
The Industry sector led the region’s growth at 7.5 percent, driven by a rebound in manufacturing, particularly in beverages, as well as growth in construction, mining, and quarrying. “Growth in construction, mining, and quarrying was spurred by key infrastructure projects,” he said.
The Services sector slowed slightly to 7.4 percent from 7.7 percent in 2023, though tourism and other key sub-sectors continued to post strong gains.
The Agriculture, Forestry, and Fishing (AFF) sector grew by only 0.05 percent, down from 0.2 percent in 2023, due to El Niño and declines in key crops.
“Despite this, the region remained the country’s second-largest agricultural producer. To boost resilience, we are pursuing the modernization of agricultural practices and promoting agro-industrial parks,” Abad Santos said.
Infrastructure investments drive regional growth
Northern Mindanao is betting on infrastructure as the key driver for its economic transformation, with 15 region-specific flagship projects under the Marcos administration supporting the region’s long-term development goals.
Abad Santos said of the 207 Infrastructure Flagship Projects (IFPs) of the Marcos Administration, 15 are Northern Mindanao-specific, the third-highest number of region-specific IFPs in the country.
Two of these projects, the Panguil Bay Bridge and the Flood Risk Improvement and Management Project for Cagayan de Oro, have already been completed, seven are ongoing, and six remain in various stages of approval or preparation.

Ongoing projects include the Expansion, Upgrading, Operation and Maintenance of Laguindingan Airport; Bukidnon Airport Development Project (Phase 4); Cagayan de Oro Coastal Road (Gusa-Igpit Section); Cagayan de Oro Coastal Road (Puerto-Gusa Section); Cagayan de Oro Diversion Road Extension; Cagayan de Oro-Opol-El Salvador-Alubijid-Laguindingan Airport Mountain Diversion Road; and Iligan City Coastal Bypass Road.
More recently, the Department of Transportation (DOTr) announced the completion of the pre-feasibility study for Phase 3 of the Mindanao Railway Project (MRP3), paving the way for a full feasibility study.
During the same forum, DOTr Planning and Development Director Crinezza Veil Mendoza said the 54.8-kilometer segment will connect Cagayan de Oro City with the municipalities of Laguindingan and Villanueva, linking the seaports and Laguindingan Airport.

“This will make the movement of people and goods more efficient,” Mendoza said, adding that the modern rail line could serve up to 150,000 passengers daily and create around 200,000 jobs once operational.
The project also features transit-oriented developments — mixed-use areas near stations designed to promote a “live, work, and play” lifestyle.
Mendoza said the plan complements the public-private partnership for the Laguindingan International Airport with Aboitiz InfraCapital, ensuring integrated mobility across Northern Mindanao.
Further to this, Abad Santos said these infrastructure initiatives are designed to enhance regional connectivity, improve trade and investment, and build more livable and sustainable communities.
Northern Mindanao’s infrastructure push complements its economic achievements, including a 6 percent growth in 2024 and its recent entry into the trillion-peso economy club. The region also continues to be the country’s second-largest agricultural producer and is building a strong innovation ecosystem.

The regional development plan, anchored on the President’s 8-Point Socioeconomic Agenda and aligned with the Philippine Development Plan, aims to ensure infrastructure projects are strategically targeted for maximum impact.
“The Midterm Update allows us to take stock of our progress—to sustain gains, address challenges, and ensure we remain aligned with AmBisyon Natin 2040. The updated plan retains our overall strategic framework to ensure continuity, while introducing key enhancements to better respond to emerging challenges and opportunities to further advance the region’s medium-term goal of achieving a more competitive, inclusive, and resilient Northern Mindanao,” Abad Santos added.
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