The Rise Makati: Is it Still the King of Airbnb Investments (and is Airbnb even Legal)?

The median annual revenue for a short-term rental in Metro Manila now sits at around ₱395,000, based on data from early 2026. That figure alone doesn’t tell you whether a specific condo in Makati is a good investment, but it does set a benchmark. When you consider that active listings have surged by over 146% in three years while occupancy rates have dropped to 49%, the picture becomes more complicated. The market is far more crowded than it was, and the returns are being spread thinner.

Makati remains the strongest Airbnb hotspot in Metro Manila, commanding a +28% location premium across roughly 180 nearby listings. That premium is significant, but it doesn’t exist in a vacuum. The same data shows that Metro Manila as a whole ranks in the lowest 25% nationally for short-term rental yield. So the question isn’t whether Makati is still the king of Airbnb investments — it’s whether the kingdom itself has shifted. For a closer look at how one specific Makati property performs under these conditions, Shang Salcedo Place offers a useful case study.

How The Rise Makati Fits Into the Short-Term Rental Picture

The Rise Makati, developed by Shang Properties, sits in a category of its own within the Makati condo market. It’s not the cheapest option, nor is it the most luxurious, but it occupies a sweet spot that appeals to a specific type of guest: the business traveler or corporate transient who values consistency, security, and proximity to the Makati CBD. Studio units here command ₱2,500–₱3,000 per night on Airbnb, with gross rental yields estimated between 6% and 8%. That yield range is solid, but it’s worth comparing to nearby competitors. Jazz Residences, for example, can yield 6%–10%, while Air Residences offers 7%–9%. The difference often comes down to furnishing quality, pricing strategy, and how aggressively the unit is marketed.

What makes The Rise particularly interesting is its developer. Shang Properties has a reputation for quality finishes and attentive property management, which translates into higher guest satisfaction scores and fewer complaints. That matters in a market where professional hosts with dozens of listings — like Junkui | GemstoneBR with 113 listings and a 4.9-star rating — dominate the top of search results. A well-reviewed unit in a well-managed building can command a premium even when overall market occupancy is declining.

Location, Due Diligence, and the Regulatory Fog

Makati’s +28% location premium is the strongest in Metro Manila, but it comes with a catch that many investors overlook. The city has introduced stricter short-term rental regulations, and many condominium buildings now restrict or outright ban Airbnb operations due to resident complaints about security, noise, and the constant turnover of strangers in the building. This isn’t a hypothetical risk — it’s an active constraint that can turn a promising investment into a liability overnight.

The due diligence process for an Airbnb investment in Makati is therefore different from buying a unit for long-term lease. You need to verify not just the city’s stance, but the building’s stance. Some developments, particularly those managed by large corporations like SMDC or Megaworld, have explicit policies against short-term rentals. Others, like The Rise, may have more flexible rules, but those rules can change with a vote by the homeowners’ association. The risk is that you purchase a unit based on current Airbnb-friendly policies, only to have those policies revoked after you’ve already committed capital.

Another layer of complexity is the legal status of Airbnb itself in the Philippines. The Department of Tourism has not issued a definitive ruling that classifies short-term rentals as either tourist accommodations or residential leases, creating a gray area that local governments fill with their own ordinances. This regulatory ambiguity means that what’s allowed today may not be allowed tomorrow, and enforcement can be inconsistent. For a deeper dive into how these dynamics play out in a specific building, Trump Tower Manila’s experience with shifting regulations offers a cautionary parallel.

Ownership, Financing, and the Tax Reality

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Foreign Ownership Restrictions Still Apply

Foreign buyers can legally own a condominium unit in the Philippines, but only if foreign ownership in the entire building does not exceed 40%. This is a constitutional limit, not a developer preference. Before purchasing a unit at The Rise for Airbnb purposes, a foreign investor must obtain a Certificate of Title confirming that the building’s foreign ownership cap has not been breached. This is not always straightforward — some developers sell units to foreign buyers without verifying the 40% limit, leaving the buyer unable to transfer the title.

Financing an Airbnb Property Is Different

Banks in the Philippines typically offer mortgage financing for residential properties, not commercial investments. If you plan to use the unit primarily as a short-term rental, a bank may classify it as a business venture and either deny the loan or offer less favorable terms. The standard loan-to-value ratio for a second home or investment property is around 60%–70%, but this can drop if the bank perceives higher risk. You’ll need to present a clear business plan, including projected occupancy and revenue, and be prepared for a higher interest rate.

Tax Obligations Are Often Underestimated

Income from Airbnb rentals is taxable in the Philippines. If you earn more than ₱250,000 annually from the property, you fall into the 15%–35% progressive income tax bracket for individuals, or the 25% corporate income tax rate if you register as a business. Additionally, you are liable for 12% VAT if your gross annual receipts exceed ₱3 million. Many first-time hosts overlook these obligations and face penalties during BIR audits. The 6% creditable withholding tax on rental income also applies if the tenant is a business entity, which is common for corporate transient stays.

Pre-Selling vs. RFO: The Timing Trap

Buying a pre-selling unit at The Rise locks in today’s price, but you won’t receive the keys for several years. During that period, market conditions can change dramatically — occupancy rates could drop further, new regulations could be enacted, or competing buildings could flood the market. A ready-for-occupancy (RFO) unit, while more expensive upfront, allows you to start generating income immediately and assess the property’s actual performance before committing additional capital. The trade-off is between price certainty and income immediacy.

What to Do Before Buying a Makati Condo for Airbnb

Verify the Building’s Short-Term Rental Policy in Writing

Request a copy of the building’s master deed and homeowners’ association bylaws. Look for clauses that restrict “transient” or “short-term” rentals. If the documents are ambiguous, ask the property manager for a written clarification. Verbal assurances from the developer’s sales team are not enforceable. If the building has a Facebook group or online forum for residents, read through recent discussions — complaints about Airbnb guests are a red flag that a policy change may be coming.

Run the Numbers With Realistic Occupancy

The Metro Manila average occupancy rate is 49%, but Makati’s premium location may push that higher for well-managed units. Use 50%–55% as your baseline, not the 70%–80% that some optimistic projections assume. Calculate your gross annual revenue as: (nightly rate × 365 × occupancy rate). Then subtract association dues, property taxes, utilities, cleaning fees, management fees (typically 15%–25% of revenue if you use a co-host), and income tax. The net figure is what you actually keep. For a studio at The Rise earning ₱2,750 per night at 52% occupancy, gross revenue would be roughly ₱522,000 annually. After expenses, net income might fall to ₱300,000–₱350,000, which against a purchase price of ₱5 million yields 6%–7% — consistent with the estimated range but far from passive.

Choose Your Management Strategy

You have three options: self-manage, hire a professional co-host, or lease to a corporate housing company. Self-management gives you full control but requires you to handle guest communication, cleaning coordination, and maintenance. Professional hosts like Cristina Joyce (100 listings, 4.9 stars) or Cecilio (83 listings, 4.8 stars) can manage your unit for a fee, but you lose direct control over pricing and guest selection. Corporate housing companies offer stable monthly income but at a lower rate than peak Airbnb pricing. The right choice depends on your time availability and tolerance for operational hassle.

• 1
  Check Building Bylaws

  Obtain and review the master deed and HOA rules for short-term rental restrictions. Get written confirmation from the property manager.

• 2
  Run Conservative Financial Projections

  Use 50%–55% occupancy as your baseline. Include all expenses: association dues, taxes, utilities, cleaning, and management fees.

• 3
  Select a Management Model

  Decide between self-management, a professional co-host, or a corporate lease. Each has different implications for income and time commitment.

• 4
  Register With the BIR

  Secure a Tax Identification Number (TIN) and register your rental activity. Keep records of all income and expenses for annual tax filing.

Understand the Regulatory Trajectory

Makati and Pasay have already introduced stricter short-term rental rules, and other Metro Manila cities may follow. The trend is toward more regulation, not less. If you’re buying today, assume that the regulatory environment will be tighter in three to five years. This doesn’t mean Airbnb will become illegal, but it may become more expensive to operate — requiring permits, inspections, or higher taxes. Factor this into your long-term holding period. If you plan to sell the unit after five years, the regulatory risk is lower than if you’re holding for 15 years.

Frequently Asked Questions

Sources

Shang Salcedo Place: Is This Makati’s Best Kept Secret for Rental Yields? — A detailed breakdown of another Makati property’s rental performance, useful for comparing yield expectations across similar buildings.

Pacific Plaza Towers: Makati’s Old Guard vs. the New Condo Boom — Explores how older Makati condos compete with newer developments, relevant for understanding long-term value retention.

Annual Airbnb Revenue in Metro Manila, Philippines. Airbtics, 2026.

Manila Real Estate Guide: Top 7 Makati Condos That Are ROI Goldmines for Airbnb and Leasing. Bed & Go Inc., 2025.

Airbnb in the Philippines: Is It Still a Good Investment?. Prime Investments PH, 2025.