MAKATI CITY — Makati CBD posted the highest land values in Metro Manila during the second quarter of 2026, averaging PHP1.0 million per square meter, based on data from Colliers Philippines. Pre-selling condominium prices reached PHP500,000 per square meter, while properties along Ayala Avenue, Makati Avenue, and Legazpi Village were priced between PHP526,000 and PHP885,000 per square meter. At the same time, the district's secondary residential vacancy rate was only 12.8 percent, less than half the 25 percent Metro Manila average. These figures point to limited supply and continued demand, but they do not by themselves determine whether a particular condominium unit is a sound investment. That assessment requires investors to examine several key factors.
Where Exactly Is the Property?
Location remains one of the most important considerations in condominium investment because it affects everyday accessibility, long-term value retention, and rental demand. In Makati, being close to business districts, international schools, hospitals, and transportation links is especially significant because the rental market includes expatriates, senior executives, and young professionals who place a high value on convenience and connectivity. Properties within walking distance of Ayala Avenue or Legazpi Village can command substantially higher rents than units located along the edges of the CBD, even when the difference in distance amounts to only a few hundred meters.
Who Will Rent It, and for How Much?
A clear understanding of the rental market is necessary when calculating potential returns. In Q2 2026, average monthly rents for one- to three-bedroom units in Makati CBD ranged from PHP840 to PHP1,000 per square meter. Gross rental yields in the secondary market were approximately 3.3 to 4.8 percent, while pre-selling properties priced at PHP500,000 per square meter generated closer to 2.0 to 2.4 percent using the same rental assumptions. The figures highlight an important characteristic of Makati's investment market: returns may depend more heavily on capital appreciation than rental income, particularly for buyers of pre-selling units. Investors looking for immediate rental income may therefore examine secondary-market properties, where lower acquisition prices can result in relatively higher yields.
What's Being Built Around It?
Upcoming developments can either strengthen a property's location or create additional competition, depending on what is constructed nearby. Makati is moving into a period of redevelopment following zoning changes that have increased allowable floor area ratios. Office developments in Legazpi and Salcedo Villages can now reach FAR 10, while mixed-use projects are permitted up to FAR 16. The Buendia property owned by PNB Holdings received an increase in its allowable FAR to 34, more than twice its previous limit, potentially making way for what could become the Philippines' tallest building. Ayala Land Premier is also redeveloping the former Mandarin Oriental and Le Parc Apartments into Park Central Towers and Park Villas. These projects reflect continued investment in the district while also introducing additional supply. Investors, therefore, need to consider whether upcoming developments are likely to complement their property or compete for the same tenants.
Does the Unit Size Match the Tenant Pool?
The size and layout of a condominium unit can significantly affect its functionality and appeal to different types of renters. Smaller studio units often attract budget-conscious young professionals, while larger multi-bedroom properties are more suited to families and expatriates who require additional space. In Makati, where expatriates and executives represent a notable segment of the rental market, larger units with efficient layouts, well-proportioned rooms, and sufficient storage can command higher rents and potentially experience less tenant turnover. Investors should assess whether a unit's size and configuration correspond to the type of renter most likely to seek accommodation in its particular building and neighborhood.
What Do the Amenities and Management Say About the Building?
Amenities and property management play an increasingly significant role in determining a condominium's appeal. Facilities such as a properly maintained swimming pool, fitness center, and secure shared spaces can enhance the overall residential experience, while effective property management helps keep common areas maintained and ensures tenant concerns are handled efficiently. In Makati's competitive rental environment, where renters have numerous choices, buildings with reliable management and well-maintained amenities can have an advantage over properties where upkeep is neglected.
