Makati, Philippines Real Estate

Makati is the Philippines' financial center: home to the BSP (central bank), the stock exchange, major law firms, and the highest concentration of multinational regional offices and embassies. Makati real estate prices range from PHP 250,000-450,000/sqm ($4,300-$7,750), with ultra-luxury Rockwell and Ayala Avenue product reaching PHP 590,000/sqm. This is a mature market with the longest price history in the country. Makati CBD commands a ~70% premium above the Metro Manila average. The investment case is stability and liquidity, not growth.

The current catalyst is counter-intuitive: oversupply is creating a buyer's entry window. Developers are offering aggressive RFO discounts, with spot cash reductions reportedly reaching 60% in select buildings. The Metro Manila Subway will add a Makati station (timeline: 2028-2032). For the premium segment, Rockwell Center remains the standout: a self-contained, master-planned enclave commanding PHP 300,000-590,000/sqm with BGC-quality building standards. Premium pricing in Rockwell and Ayala Avenue has held stable while mid-range inventory faces pressure.

A 40-50 sqm 1BR in a mid-to-premium building rents for PHP 30,000-60,000/month ($520-$1,035). Rockwell and Ayala-area units fetch PHP 50,000-80,000/month. Gross yields of 3-5% reflect high purchase prices rather than weak rents. Poblacion, Makati's nightlife and hospitality quarter, yields higher at 7-9% but with smaller units and a different risk profile. Annual holding costs for a 50 sqm 1BR run approximately PHP 120,000-180,000/year ($2,070-$3,100).

Makati is the conservative allocation in a Philippines portfolio. The building stock is aging (many towers are 20-40 years old), and BGC is drawing premium tenants toward newer product. Traffic congestion remains severe on narrow, older streets. But no other Philippine market offers this depth of rental demand, this level of transaction liquidity, or this degree of data transparency. For global diversifiers seeking predictable, stable exposure with the lowest execution risk in the country, Makati is the default.