Is The Rise Makati Still a Good Airbnb Investment? Locals Weigh In.

Makati’s short-term rental market now hosts over 4,900 active Airbnb listings, yet the typical unit books only about 34.6 percent of available nights per year. That figure alone should give any prospective investor pause. A 34.6 percent occupancy rate means a property sits vacant for roughly two out of every three nights, which directly drags down the annual revenue an owner can expect to earn.

These numbers come from market data aggregated over the past twelve months, and they paint a picture of a market that is both crowded and underperforming relative to what many investors assume. The average nightly rate of $45 (roughly ₱2,500) sounds reasonable for a business district condo, but when you multiply it by a low occupancy rate, the estimated annual revenue per listing lands at just $4,150. That is before factoring in condo association dues, cleaning fees, utilities, and the platform’s service charge. For a unit purchased at Makati prices, the math gets tight quickly. To understand how other Metro Manila properties compare, you might look at how Icon Residences in McKinley Hills positions itself as an alternative investment play.

What the Makati Airbnb Market Actually Looks Like Right Now

The core issue is not that Makati is a bad place to list a property — it is that supply has grown far faster than demand. Metro Manila saw a 36.6 percent increase in active listings over the past year alone, and a staggering 146.7 percent increase over three years. That flood of new inventory has pushed occupancy rates down by nearly 11 percent year-over-year. A unit that might have booked 55 percent of nights two years ago now struggles to reach 35 percent. The result is that median annual revenue for a Metro Manila short-term rental now sits at around ₱395,000, a drop of 8.2 percent from the previous year.

For context, a ₱395,000 annual gross revenue works out to roughly ₱33,000 per month. After deducting typical operating costs — cleaning, utilities, condo dues, management fees, and Airbnb’s cut — the net monthly income may fall below ₱20,000. That is a thin margin for a property that likely cost several million pesos to acquire. The situation is not uniform across all of Makati, however. Listings near the Makati business district hotspots can command a +28 percent location premium, but that advantage is concentrated among roughly 180 listings. For the other 4,700-plus units, the competitive pressure is intense.

Why Occupancy Is Dropping and What That Means for Returns

The decline in occupancy is not a mystery — it is a straightforward supply-and-demand imbalance. Metro Manila’s short-term rental supply has nearly tripled in three years, while the number of guests has not kept pace. The occupancy rate fell 10.9 percent year-over-year and 16.9 percent over three years. That means even if you price your unit competitively, you are fighting for a shrinking share of bookings against thousands of other hosts doing the same thing.

One consequence that does not always get discussed is the effect on revenue per available room, or RevPAR. When occupancy drops and nightly rates stay flat or decline, RevPAR falls even faster. A listing that once generated ₱50,000 a month might now bring in ₱30,000, but the fixed costs — mortgage, association dues, property tax — do not shrink. That is the kind of scenario that turns a promising investment into a cash-flow drain. For a closer look at how premium properties handle similar pressures, the Grand Hyatt Residences offers a case study in whether high-end amenities can justify a steep price.

Another factor is the growing number of listings that are not professionally managed. Many individual owners list their units hoping for occasional income, which keeps prices low and standards inconsistent. Guests who have a bad experience in one unit may be less likely to book in Makati again, which hurts the entire local market. Meanwhile, hosts who treat their units as serious businesses — with professional photography, responsive communication, and competitive pricing — tend to outperform the averages, but they still face the same macro headwinds.

What Gets Missed in the Makati Airbnb Conversation

Most discussions about Airbnb investing focus on nightly rates and occupancy, but several less obvious factors matter just as much. Here is what often gets overlooked.

The Registration Requirement Is Becoming a Real Barrier

Airbnb’s data portal now includes a field for registration numbers, and local government units in Metro Manila are increasingly enforcing short-term rental regulations. Units without proper registration risk being delisted or fined. That adds a compliance cost and a legal risk that many casual investors do not factor into their return calculations. If you are buying a unit specifically for Airbnb, you need to verify that the building’s condo corporation and the local government allow short-term rentals — and that you can obtain the necessary permits. Some buildings have already banned short-term stays entirely.

The Seasonality Problem Is Worse Than It Looks

Makati’s occupancy data is an annual average, but the reality is that bookings are heavily concentrated around a few peak periods — typically during major conferences, holidays, and the dry season. For the rest of the year, occupancy can drop well below 30 percent. That means your cash flow is lumpy, and you need enough reserves to cover months where the unit earns almost nothing. The average length of stay in Metro Manila short-term rentals is short, which means you are constantly turning over guests and incurring cleaning and management costs with every new booking.

Not All Makati Listings Compete on the Same Terms

The +28 percent location premium in the business district is real, but it applies to a small fraction of listings. Most units are outside that core hotspot and compete primarily on price. That creates a race to the bottom where hosts undercut each other to fill nights. The result is that the average nightly rate of $45 may be higher than in other Metro Manila cities, but the occupancy rate is also lower, which cancels out the rate advantage. A listing in Pasig, for example, has a similar average daily rate of ₱2,135 but a higher overall occupancy rate for the broader Metro Manila area, which can produce comparable or better annual revenue.

What to Do If You Are Still Considering a Makati Airbnb

If the numbers above have not scared you off, there are still ways to approach a Makati Airbnb investment with your eyes open. The key is to be deliberate about location, unit selection, and operating strategy.

Target the Business District Hotspot or Do Not Bother

The data is clear: the only listings in Makati that command a meaningful pricing advantage are those within the core business district hotspot, where the +28 percent location premium applies. If you are looking at a unit outside that zone — say, in a residential area farther from the main office towers — you are essentially competing on price with thousands of other listings. In that case, your returns will likely be below the Metro Manila median, and the investment case becomes much harder to justify. Before buying, check the listing density in the specific building and surrounding area. If there are already dozens of Airbnb units in the same condo, expect fierce competition.

Factor in All Costs, Not Just the Purchase Price

The estimated annual revenue of $4,150 per listing is gross revenue. From that, you need to subtract Airbnb’s host fee (typically 3 to 5 percent), cleaning costs (which can run ₱500 to ₱1,500 per turnover), condo association dues (which vary widely but can be ₱3,000 to ₱8,000 per month for a studio unit), utilities, internet, and property management if you are not handling bookings yourself. A professional management company in Metro Manila typically charges 20 to 30 percent of gross revenue. After all deductions, net annual income on a ₱4,150 gross could easily fall below $2,500. That is a return of perhaps 2 to 3 percent on a unit that costs $100,000 or more — worse than a high-yield savings account, with far more risk and hassle.

Consider the Long-Term Rental Alternative

Before committing to short-term rental, run the numbers for a traditional lease. A studio or one-bedroom unit in a decent Makati building can rent for ₱20,000 to ₱35,000 per month on a long-term basis. That works out to ₱240,000 to ₱420,000 per year in gross rental income — comparable to or better than the ₱395,000 median Airbnb revenue, but with far lower operating costs, no turnover expenses, and zero vacancy risk between guests. The trade-off is that you lose the flexibility to use the unit yourself, and long-term tenants come with their own set of management challenges. But for many investors, the stability of a long-term lease beats the uncertainty of short-term bookings. For a deeper look at how different property types perform, the Essensa East Forbes analysis explores whether exclusivity compensates for limited amenities.

Watch for Regulatory Changes

Metro Manila’s regulatory environment is currently described as lenient, but that is changing. Several local government units are drafting ordinances that would require short-term rental registration, impose occupancy taxes, or limit the number of days a unit can be rented. If stricter rules come into effect, they could reduce the number of active listings — which would actually help remaining hosts by reducing supply — but they could also add compliance costs that eat into already thin margins. Anyone entering the market now should budget for potential regulatory expenses and monitor local government announcements closely.

Frequently Asked Questions

Making the Call on a Makati Airbnb Investment

The Makati short-term rental market is not the easy win it may have been a few years ago. Supply has surged, occupancy has dropped, and the margins are thin for all but the best-located units. If you are set on buying a property for Airbnb, your best bet is a unit inside the business district hotspot, managed professionally, and priced competitively from day one. For everyone else, the safer play may be a long-term lease or a property in a less saturated Metro Manila city where the occupancy numbers are stronger. Either way, go in with realistic revenue expectations and a clear understanding of all the costs involved. If this was useful, you might also want to read the hidden security challenges of St. Francis Shangri-La Place.

Sources

Uptown Ritz Residence review — A look at whether premium penthouses in BGC deliver on their investment promises.

Horizon Homes analysis — Examines whether scenic views alone can justify a high price tag in a competitive market.

Makati Airbnb Market Data. AirROI, 2026.

Annual Airbnb Revenue in Metro Manila. Airbtics, 2026.