Makati has long been considered the centre of Metro Manila’s short-term rental market, but the numbers tell a more complicated story than the reputation suggests. With over 3,100 active Airbnb listings and an average annual revenue of $4,150 per property, the city remains the most saturated market in the region — yet revenue has dropped by more than 10 percent year on year. For anyone considering entering this space or already managing a unit there, the question is no longer simply whether Makati is profitable, but under what conditions and for whom.
These figures come from a market that has seen supply grow by a third in recent months, even as demand has not kept pace. The median property in Makati earns around $405 per month, but the gap between top performers and the rest is wide — the best 10 percent of listings bring in over $1,200 monthly, while the bottom quarter earn roughly $165. That spread suggests that location, pricing strategy, and listing quality matter far more than the general market trend. For a deeper look at whether the hype around Makati short-term rentals has faded, our earlier analysis on whether the Airbnb hype in Makati is finally over covers the broader trajectory.
What the Key Metrics Actually Mean for Hosts
The numbers reveal a market where the median experience is modest, but the ceiling is high for those who break through. Understanding where you sit on that spectrum — and what it takes to move up — is the real value of this data. The occupancy rate is the single biggest lever: a jump from the median 34 percent to the top quartile’s 60 percent roughly doubles revenue without changing nightly rates.
Makati’s RevPAR of $16 is modest by international standards, but the top 10 percent achieve $31 — nearly four times the bottom quartile’s $7. That $24 gap is where the real story lies: it is not about the market being good or bad, but about which properties capture the premium and which ones do not.
Why Supply Growth Is Reshaping the Competitive Landscape
The number of active Airbnb listings in Makati has grown by over 33 percent, pushing total inventory past 3,100 units. Across Metro Manila, the picture is even starker: active listings have surged 36.6 percent year on year to over 25,500, with a three-year increase of nearly 147 percent. That kind of supply growth inevitably compresses occupancy and puts downward pressure on rates for properties that do not stand out.
Yet Makati retains a structural advantage that newer entrants lack. The area commands a +28 percent location premium across 180 nearby listings, the strongest of any hotspot identified in Metro Manila. That premium reflects the concentration of business travellers, expatriates, and tourists who prioritise central location over cost. But a location premium only helps if the listing itself is well-managed — a poorly rated unit in a prime area still underperforms a well-reviewed one in a secondary location.
This dynamic means that while the overall market appears crowded, the competition is not uniform. Listings that achieve top-quartile performance — 60 percent occupancy or higher, nightly rates above $49 — tend to share common traits: professional photography, responsive hosts, prime building locations, and amenities that match guest expectations. Properties that lack these elements increasingly get buried in search results.
What Gets Missed in the Makati Airbnb Conversation
Most discussions about short-term rental profitability focus on headline numbers — average revenue, occupancy, nightly rates. But several nuances change how those numbers should be interpreted, especially for someone deciding whether to invest in a Makati unit or adjust their current strategy.
The Booking Lead Time Trap
Guests book Makati listings an average of 19 days in advance. That relatively short window means hosts cannot rely on long-term planning to fill their calendars. It also creates cash flow unpredictability: a unit that looks empty three weeks out can fill up quickly, but so can one that looks promising suddenly go dark. Hosts who do not actively manage pricing and availability on a weekly basis tend to see lower occupancy as a result.
Revenue Decline Is Not Uniform Across Segments
The headline -10.2 percent year-on-year revenue decline masks significant variation. Top-quartile properties have seen smaller drops because they maintain higher occupancy and can command premium rates even in a softening market. Entry-level properties, already earning around $165 monthly, are the most vulnerable — a further decline could push them below operating costs, especially when association dues, cleaning fees, and utilities are factored in.
Metro Manila Ranks in the Bottom 25 Percent Nationally
Despite being the country’s economic centre, Metro Manila as a whole ranks in the lowest quartile for short-term rental yield nationally. That does not mean profitability is impossible — it means the margin for error is thinner than in provincial markets with less competition and lower carrying costs. Hosts who treat their unit as a passive investment rather than an active business are the ones most likely to see disappointing returns.
The Professional Host Advantage Is Growing
Professional operators now manage a significant share of listings. Hosts like Junkui and GemstoneBR run 113 units with a 4.9-star average; Cristina Joyce manages 100 listings at the same rating. These operators benefit from economies of scale in cleaning, maintenance, and dynamic pricing — advantages that individual unit owners cannot easily replicate. The gap between professional and amateur hosts is likely to widen as supply continues to grow.
| Performance Tier | Monthly Revenue | Occupancy Rate | Nightly Rate | RevPAR |
|---|---|---|---|---|
| Top 10% | $1,201+ | 80%+ | $67+ | $31 |
| Top 25% | $762+ | 60%+ | $49+ | $20 |
| Median | $405 | 34% | $38 | $12 |
| Bottom 25% | $165 | 15% | $30 | $7 |
The table above makes the stratification clear. Moving from the median to the top quartile more than doubles monthly revenue — from $405 to $762 — and nearly doubles RevPAR. That jump is achievable for many hosts, but it requires deliberate changes in how the unit is positioned and managed.
What Hosts Can Actually Do to Improve Performance
The data points toward specific actions that separate top-performing listings from the rest. These are not theoretical suggestions — they are patterns observable in the properties that consistently achieve above-median results.
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Optimise for Occupancy Before Rate
The median nightly rate in Makati is $38, while top performers charge $49 or more. But the bigger lever is occupancy: moving from 34 percent to 60 percent adds more revenue than raising the nightly rate by $10. Focus on pricing competitively during shoulder and low seasons to keep the calendar filled, then raise rates during peak months when demand is highest. December is the peak revenue month, while May sees the lowest earnings — adjust your pricing strategy accordingly rather than keeping a flat rate year-round.
Target the Right Guest Profile
Over a third of international guests in Metro Manila come from the United States. Business travellers and tourists staying near the central business district are Makati’s core audience. Listings that cater to this group — with reliable WiFi, workspace setups, and easy access to Ayala Avenue and Greenbelt — tend to perform better than those designed for leisure travellers who might prefer BGC or Pasay. Understanding the hidden security challenges of high-end condominiums can also help hosts address guest concerns before they become negative reviews.
Invest in the Guest Experience, Not Just the Unit
Professional hosts with high ratings share common practices: same-day response times, clear check-in instructions, backup systems for key handover, and proactive communication about building amenities. These factors directly influence review scores, which in turn affect search ranking on Airbnb. A half-star difference in average rating can meaningfully shift booking volume in a saturated market.
Consider the Timing of Your Entry or Exit
With supply growing rapidly and revenue declining, the window for entering the market at favourable terms may be narrowing. For existing hosts, the question is whether your unit can reach top-quartile performance within the next 12 months. If not, selling or converting to a long-term lease may be the more rational financial decision — especially if your current revenue sits near the bottom quartile, where margins are already thin.
Frequently Asked Questions
Is Makati still the best location for Airbnb in Metro Manila? ▾
How much can I realistically earn from a Makati Airbnb unit? ▾
Why is occupancy so low in Makati? ▾
Should I buy a condo in Makati specifically for Airbnb? ▾
What is the best time of year to list or adjust pricing? ▾
Sources
Shang Salcedo Place: Salcedo Village Charm at a Premium Cost — A closer look at one of Makati’s most popular condo buildings for short-term rentals and whether the premium is justified.
Eastwood Legrand Tower 3: Is This Cyberpark Condo Overhyped? — An alternative investment option in Quezon City’s business district for hosts considering locations outside Makati.
Makati Airbnb Market Data. Airroi, 2025.
Annual Airbnb Revenue in Metro Manila, Philippines. Airbtics, January 2026.
