The Rise Makati: Is the Airbnb Hype Finally Over?

Makati’s short-term rental market is showing signs of strain. The average annual revenue per Airbnb listing in the city has dropped to $4,150, a year-over-year decline of 10.2 percent. For someone considering buying a condo unit specifically to list it on Airbnb, that figure is the first signal that the easy-money phase may be over. The market is not collapsing, but it is clearly shifting from a growth story to a performance-sorting story — where the gap between the best and worst listings is widening fast.

These numbers matter because they represent the median experience — not the top-tier host who has figured out the formula. The 34.6 percent occupancy rate means the average unit sits empty for nearly two-thirds of the year. That is a hard reality to square with the still-common assumption that any condo in Makati will generate steady rental income. The supply side tells part of the story: active listings in Makati alone have grown by 33.3 percent, flooding the market with more options than demand can absorb at previous rates. For context, across all of Metro Manila, active listings have surged by 36.6 percent in the past year and a staggering 146.7 percent over three years. The hype around Airbnb in Makati was real for a while, but the data now suggests a market that has matured faster than many expected. If you are looking at a condo purchase with short-term rental income in mind, the question is no longer whether the opportunity exists — it is whether you can land in the top tier of performers. For a closer look at how specific buildings in the area are faring, our analysis of Pacific Plaza Towers offers a useful comparison between older and newer stock.

What the Makati Airbnb Market Actually Looks Like Right Now

The core dynamic is straightforward: more supply and softening demand are compressing margins for everyone except the best operators. The median listing in Makati charges around $38 per night and achieves 34 percent occupancy. That works out to roughly $405 in monthly revenue. After factoring in association dues, electricity, water, internet, cleaning, and the occasional repair, the net take-home for a typical host is thin. The top 10 percent of listings, by contrast, command $67 or more per night and maintain occupancy above 80 percent, generating over $1,200 monthly. That is a three-to-one revenue gap between the best and the median, and it is growing. The market is not rejecting short-term rentals — it is rejecting average ones. If you are considering a unit in a building like Air Residences, where high density can work against you, understanding this performance split is critical before committing capital.

Why the Gap Between Top and Bottom Performers Is Widening

The numbers that explain the most are not the averages — they are the extremes. The RevPAR gap between the top 10 percent of Makati listings and the bottom 25 percent is $24. That is a chasm, not a difference. The best-in-class listings achieve a RevPAR of $31, while the bottom quartile manages just $7. To put that in perspective, a bottom-quartile unit earning $7 per available night generates about $210 in monthly revenue before expenses — less than the monthly association dues on many Makati condos. The median listing sits at $12 RevPAR, which is better but still leaves little room for error.

What separates the top from the bottom? Location within Makati matters, but not in the way most people assume. The data shows that Makati carries a +28 percent location premium compared to other Metro Manila hotspots, but that premium is not evenly distributed. Units near Bonifacio Global City, for example, command a +12 percent premium, while those along EDSA see the same uplift — but the absolute revenue numbers differ because of unit quality, amenities, and host responsiveness. The top performers invest in professional photography, smart locks, consistent cleaning, and responsive communication. They also tend to be concentrated in buildings with good amenities and security, which matters to international guests — who make up a significant portion of demand. The United States accounts for 35.9 percent of international guests in Metro Manila, and American travellers tend to have higher expectations for cleanliness, check-in ease, and Wi-Fi reliability. A unit that does not meet those standards will struggle to break out of the bottom quartile, regardless of how central its location is. For a deeper dive into how walkability and location affect condo performance, our review of Salcedo SkySuites examines a building that benefits from strong pedestrian access.

Seasonal Patterns and What They Mean for Cash Flow

Makati’s Airbnb demand follows a clear seasonal rhythm, and understanding it is essential for realistic cash flow projections. The peak season runs from December through February, when average monthly revenue hits $634 and occupancy climbs to 42.9 percent. The low season — April, May, and September — sees revenue drop to an average of $515 per month, with occupancy falling to 34.1 percent. The shoulder months fill the gap with middling performance. The key takeaway is that even in peak season, the median listing is not hitting 50 percent occupancy. The best months are good, but not great, and the worst months are genuinely challenging for cash flow.

This seasonality creates a specific problem for owners who rely on short-term rental income to cover monthly mortgage payments. If your unit performs at the median, you are looking at roughly four months of the year where revenue is decent, four months where it is mediocre, and four months where it is genuinely low. That uneven cash flow makes it difficult to budget for fixed costs like association dues, which do not fluctuate with occupancy. The peak revenue month is December, and the lowest is May — a pattern that aligns with holiday travel and the summer lull. For owners who can afford to hold through the slow months, the strategy still works. For those who need consistent monthly income, the seasonal swings introduce real risk. RevPAR itself follows a similar pattern, peaking in February and bottoming out in May, which reinforces the point that timing matters when you are projecting returns.

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Notice that the average daily rate barely moves across seasons — it hovers around $44 to $46 regardless of demand. That is unusual. In most hospitality markets, rates rise during peak demand and fall during low demand. The fact that Makati’s ADR stays flat suggests that hosts are competing primarily on occupancy rather than price. They are not raising rates during high season because they fear losing bookings to the thousands of other listings. And they are not lowering rates during low season because they have already hit a floor where further cuts would not cover costs. This pricing rigidity is a sign of a market where supply has outpaced demand to the point that individual hosts have lost pricing power. For a look at how a different type of location — mall-adjacent living — affects returns, our analysis of SM Aura Premier Residences explores a similar trade-off between convenience and competition.

What to Do If You Are Still Considering a Makati Condo for Airbnb

If the data has not scared you off, the next step is to be realistic about where you can land in the performance distribution. The market is not closed to new entrants, but it is unforgiving to those who underestimate what it takes to compete. Here is what the numbers suggest about the decisions that matter most.

Target the top 25 percent from day one

The difference between a top-quartile listing and a median one is not luck — it is intentional design. Top performers achieve 60 percent or higher occupancy and nightly rates of $49 or more. That requires a unit that is not just clean but visually appealing in photos, with amenities that match what international guests expect: reliable high-speed internet, a well-equipped kitchen, in-unit washer and dryer, and a comfortable workspace. If your unit lacks any of these, you are effectively competing in the bottom half of the market from the start. The upfront investment in furnishing and staging is not optional — it is the single biggest determinant of whether you land in the top quartile or the bottom.

Choose your building and location carefully

Not all Makati locations are equal. The data shows that specific hotspots carry location premiums, but the premium is only realised if the building itself supports short-term rental operations. Some condominium corporations have restrictions on short-term rentals, and enforcement varies. Before purchasing, verify the building’s policy on Airbnb and similar platforms. Also consider the building’s amenities: a gym, pool, and 24-hour security are table stakes for the top-performing listings. Buildings without these features will struggle to command premium rates, regardless of how central they are. For a case study on how building-specific factors affect investment outcomes, our review of Anchor Skysuites examines a property in a different Manila district with its own set of trade-offs.

Plan for the low season

Even the best listings experience seasonal dips. The low season months of April, May, and September will test your cash flow. A realistic plan includes either having enough cash reserves to cover three to four months of expenses or diversifying your rental strategy — for example, offering monthly stays to corporate tenants during slow periods. Some hosts in Makati pivot to mid-term rentals (30 days or more) during the low season, which stabilises occupancy at the cost of a lower nightly rate. The data suggests that the average booking lead time is 19 days, which means you cannot rely on last-minute bookings to fill gaps. You need a forward-looking strategy that accounts for predictable demand troughs.

Understand the regulatory landscape

Makati’s short-term rental regulation level is currently classified as low, and Metro Manila’s regulations are described as lenient. That could change. Several local government units in Metro Manila have discussed or proposed tighter rules on short-term rentals, citing concerns about housing availability, noise, and security in residential buildings. If regulations tighten, the cost of compliance could rise, and some buildings may ban short-term rentals outright. This is a risk that is difficult to quantify but impossible to ignore. The current leniency is not a guarantee of future policy.

Frequently Asked Questions

Sources

The Proscenium: Can This Rockwell Center Icon Justify Its Premium Price Tag? — A detailed look at a high-end Makati development and whether its pricing aligns with actual market returns.

Makati Airbnb Market Data. Airroi, 2025.

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