Thinking about investing in Makati real estate? Smart move! With its bustling business district and vibrant lifestyle, Makati offers some interesting opportunities for property investors. Let’s dive into the rental yields you can expect and other key factors to consider before you jump in.
Understanding Rental Yields in Makati
Rental yield is basically the return on your investment, showing how much income you can generate from renting out a property. It’s expressed as a percentage. A higher rental yield means a better return. In Makati, the rental yields can vary quite a bit depending on the property type, location, and other factors. According to Global Property Guide, the average gross rental yield in the Philippines was 5.12% in the first quarter of 2025. Keep this benchmark in mind as we explore specific examples in Makati.
Top Condominiums and Their Rental Yields
Here’s a rundown of some popular condominiums in Makati and their estimated gross rental yields as of 2025, according to BedandGo Inc.:
- The Rise Makati: Boasts a rental yield of up to 7.2%.
- Air Residences: Offers a rental yield of approximately 6.8%.
- San Lorenzo Place: Provides a rental yield of around 6.0%.
- The Gramercy Residences: Has a rental yield of approximately 5.8%.
- Discovery Primea: Ranges from 5% to 6%, reflecting its premium status.
- One Roxas Triangle: Shows about 5.5%, known for its stability.
- Eton Residences Greenbelt: Stands at approximately 5.5% to 6%.
- Jazz Residences: Presents a rental yield of 6%.
These figures give you a good starting point for understanding the potential returns from investing in these specific buildings. Remember that these are just estimates, and actual yields can vary.
Other Makati Condominiums with High Rental Yields
Besides the condominiums mentioned previously, some other properties in Makati also offer attractive rental yields according to ZipMatch:
- Cityland Pasong Tamo: Leads with a rental yield of 11.78%.
- Makati Prime Tower Suites: Offers a rental yield of 10.76%.
- Belton Place: Provides a rental yield of 10.46%.
These higher yields may reflect factors like the property’s age, location within Makati, or specific amenities. Always do thorough research to understand why a property offers a higher-than-average yield.
Makati Condo Prices: What to Expect
Knowing the price range of condominiums in Makati is essential for calculating your potential investment and understanding if it aligns with your budget. According to HousingInteractive.com.ph, average condominium prices in Makati range from ₱200,000 to ₱250,000 per square meter. However, this can vary significantly based on the specific development.
For example, as of January 2025, the average condominium price in Makati was about ₱364,000 per square meter. Ultra-luxury developments, like The Estate Makati, exceed ₱590,000 per square meter. Keep in mind that these prices are for purchasing a unit, not renting. If you’re looking to buy, be prepared for a potentially hefty investment, depending on the kind of property you’re after.
Additionally, Copound.com provides a price range for studio apartments in Makati:
- Minimum: ₱1.2 million
- Average: ₱1.8 million
- Maximum: ₱3.6 million
Rental Rates in Makati: A Detailed Look
Let’s break down the rental rates you can expect in Makati, differentiating between apartment sizes and locations. Knowing the potential rental income is vital to evaluate the profitability of a property.
Average Apartment Rents
According to LivingCost.net, here are the average monthly rents for apartments in Makati city center:
- 1-bedroom apartment: ₱43,945.18
- 3-bedroom apartment: ₱177,204.62
Outside the city center, rents are generally lower:
- 1-bedroom apartment: ₱28,888.52
- 3-bedroom apartment: ₱109,881.42
The difference in rental rates reflects the higher demand for properties in the central business district, where most offices, commercial establishments, and amenities are located.
Median Rent Prices
Dot Property lists the median rent price for condos in Makati at ₱66,492, with a median list price of ₱16,108,858. From these figures, they estimate a gross rental yield on condos in Makati of 5.0%.
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Rental Rates for Different Property Types
HousingInteractive.com.ph notes that rental rates for high-end condominiums in Makati typically range from ₱30,000 to ₱60,000 per month for one-bedroom units. Luxury units can command rental rates exceeding ₱150,000. The rent largely depends on the amenities, location, and overall prestige of the building.
Furthermore, Copound.com provides a more granular view of rental costs based on property type:
- Studio Apartment: Ranging from ₱6,000 (minimum) to ₱24,000 (maximum), with an average of ₱9,000
- 1-Bedroom Apartment: Ranging from ₱9,000 (minimum) to ₱36,000 (maximum), with an average of ₱14,000
- 2-Bedroom Apartment: Ranging from ₱12,000 (minimum) to ₱48,000 (maximum), with an average of ₱18,000
- 3-Bedroom Apartment: Ranging from ₱14,000 (minimum) to ₱65,000 (maximum), with an average of ₱24,000
- Furnished Apartment: Ranging from ₱29,000 (minimum) to ₱140,000 (maximum), with an average of ₱72,000
- Townhouse: Ranging from ₱24,000 (minimum) to ₱100,000 (maximum), with an average of ₱36,000
- House: Ranging from ₱29,000 (minimum) to ₱140,000 (maximum), with an average of ₱72,000
- Villa: Ranging from ₱36,000 (minimum) to ₱140,000 (maximum), with an average of ₱90,000
Other Factors Affecting Your Investment
While rental yields and property prices are crucial, several other factors can influence your investment’s success. Let’s take a look.
Vacancy Rates
The residential vacancy rate in Makati’s central business district (CBD) was 13.2% in late 2024, according to HousingInteractive.com.ph. This means about 13 out of every 100 residential units were unoccupied. High vacancy rates can put downward pressure on rental rates and affect your income.
Net Effective Rent
The net effective rent for mid-high and luxury residential properties in Makati and Taguig increased by 1.9% year-on-year to PHP848 per square meter per month in Q1 2025, as noted by Global Property Guide. This is a positive sign, indicating increasing demand for premium properties.
Cost of Living Considerations
Understanding the cost of living in Makati can help you determine the appropriate rental rate for your property. According to LivingCost.net,
As of late 2025, condominium prices in Makati average ₱238,096 per square meter, reflecting ongoing market dynamics.
Market resilience continues, with Q2 2025 reports showing lower vacancies at 10.5% in Makati CBD and steady rental yields per Cushman & Wakefield.
the average monthly cost for essential utilities in a 915 sq. ft. apartment is about ₱9,387.44. Internet service (60 Mbps or more, unlimited) averages around ₱3,250.18 per month. These costs are typically borne by the tenant, but knowing them can help you understand tenant affordability and set competitive rental rates.
Keep in mind that these costs are on top of rent. Also, the average monthly salary after tax in Makati is ₱36,105.17. This figure helps in assessing the affordability of rental rates for potential tenants.
As for apartment costs per square foot, LivingCost.org indicates:
- Apartments in Makati city center: ₱26,201.66 per square foot
- Apartments outside Makati city center: ₱16,916.16 per square foot
Mortgage Interest Rates
If you’re planning to finance your property purchase, the mortgage interest rate will affect your overall investment cost. LivingCost.net estimates a 4% interest rate for a 20-year fixed mortgage (updated rates around 5.5-6.8% in 2025).
Tips for Maximizing Rental Yield
Okay, so how do you make sure you get the best possible return on your Makati property investment? Here are a few tips:
- Location, Location, Location: Properties in prime locations, close to business districts, transportation hubs, and amenities, tend to command higher rental rates.
- Property Management: Consider hiring a property manager to handle tenant screening, rent collection, and property maintenance. This can save you time and hassle, especially if you live far from Makati.
- Amenities Matter: Focus on properties with attractive amenities like swimming pools, gyms, and 24/7 security. These can justify higher rental rates.
- Target the Right Tenants: Identify your ideal tenant profile (e.g., young professionals, expatriates, families) and tailor your marketing efforts to attract them.
- Keep Your Property in Good Condition: Regular maintenance and upgrades can keep your property attractive to tenants and help you command higher rents.
Also, knowing the minimum, average, and maximum rent for each property type, as discussed previously, can help you set rent prices that are competitive but also profitable.
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Frequently Asked Questions
What is the average rental yield in Makati?
The average gross rental yield in Makati varies, but it generally hovers around 5%. Some properties, like The Rise Makati, can yield up to 7.2%, while others, like One Roxas Triangle, offer a more stable yield of around 5.5%.
How much does it cost to rent an apartment in Makati?
The cost to rent an apartment in Makati depends on the size and location. A 1-bedroom apartment in the city center averages around ₱43,945.18 per month, while a 3-bedroom apartment averages around ₱177,204.62. Rentals outside the city center are generally cheaper.
What are the average condo prices in Makati?
Average condominium prices in Makati range from ₱200,000 to ₱250,000 per square meter. Some luxury developments can exceed ₱590,000 per square meter.
What is the vacancy rate in Makati CBD?
The residential vacancy rate in Makati CBD was 13.2% in late 2024.
What are the essential expenses to consider when renting out a property in Makati?
Essential expenses include utilities (around ₱9,387.44 for a 915 sq. ft. apartment), internet service (around ₱3,250.18 per month), and property management fees (if applicable).
What are some condominiums in Makati with high rental yields?
Some condos with high rental yields include Cityland Pasong Tamo (11.78%), Makati Prime Tower Suites (10.76%), and Belton Place (10.46%). The Rise Makati and Air Residences also offer competitive yields. Top performers in 2025 include several with strong demand (BedandGo).
What is the net effective rent in Makati?
The net effective rent for mid-high and luxury residential properties in Makati and Taguig was PHP848 per square meter per month in Q1 2025.
What is important to consider when setting rental rates?
When setting rental rates, consider the location, size, amenities, and overall condition of your property. Research comparable properties in the area to ensure your rates are competitive.
What are the average monthly salaries in Makati?
The average monthly salary after tax in Makati is around ₱36,105.17.
What are the mortgage interest rates in Makati?
For a 20-year fixed mortgage, expect to pay around 4% interest, according to estimates. Rates can vary based on the lender.
Sources Used:
- BedandGo Inc.
- ZipMatch
- Global Property Guide
- HousingInteractive.com.ph
- LivingCost.net
- Dot Property
- Copound.com
Makati locations can offer gross rental yields around 6.75%, while 2025 analyses point to potentials up to 7.2%.
Makati offers a unique blend of investment opportunities and challenges. By understanding the rental yields, property prices, and other key factors, you can make informed decisions and maximize your returns. Whether you’re a seasoned investor or just starting, Makati’s real estate market has something to offer. But be sure to do your homework, crunch the numbers, and get boots on the ground to visit properties. Now, if you’re thinking “I’m ready to explore Makati real estate!”, there’s no better time than now. Don’t let the perfect investment slip away!
