What is rental yield in Makati?

Rental yield refers to the annual return on investment (ROI) in the form of rental income, expressed as a percentage of the property's purchase price or current market value. It gives investors an indication of the potential income they can earn from their property investments. In Makati, rental yields can vary based on location, property type, and market conditions.

How is rental yield calculated in Makati?

To calculate rental yield, divide the annual rental income by the property's purchase price, then multiply by 100. For example, if a property in Makati costs PHP 3,000,000 and generates an annual rental income of PHP 300,000, the rental yield would be 10%. This calculation helps investors evaluate the profitability of rental properties.

What is considered a good rental yield in Makati?

A good rental yield in Makati typically exceeds 6%, with prime properties achieving between 8% and 10%. These rates indicate a strong income relative to the property's purchase price. Well-located, furnished units targeting expatriates and senior executives consistently achieve the upper range of yields.

What factors affect rental yield in Makati?

Several factors influence rental yield in Makati, including location, property type, market demand, and economic conditions. Properties in prime areas like Salcedo Village or Legaspi Village generally offer higher rental yields due to demand from professionals and expats. Property management fees and maintenance costs also impact the net yield.

How can I improve rental yield in Makati?

Enhancing rental yield involves strategies like upgrading property features, ensuring competitive rental pricing, and targeting the right tenant segment. Improvements such as adding modern amenities, ensuring efficient maintenance, and adopting effective marketing strategies can attract higher-paying tenants, thereby boosting yields.

How much rent can I charge for a 1BR in Makati?

For a furnished 1BR (38–45sqm) in Legaspi or Salcedo Village, achievable market rent in Q1 2026 is PHP 45,000–80,000/month depending on building quality, floor, view, and furnishing level. PHP 55,000–65,000/month is the most common achieved range for standard premium 1BRs in these zones.

What is the occupancy rate in Makati condos?

Well-managed, properly priced units in Legaspi and Salcedo Village achieve 90–96% occupancy annually. The overall Makati market average is 88–94%. Poorly managed or overpriced units in less-desirable locations can drop to 75–80%.

Is Makati rental yield better than BGC?

Makati typically delivers slightly lower gross yield than BGC (Makati 6–7% vs BGC 6–8%), but higher net yield after vacancies due to Makati's superior occupancy rates. For net yield optimization, Makati's deep expat market and lower vacancy delivers better actual income in most years.

MAKATI RENTAL YIELD ANALYSIS 2026

Rental Yield Makati 2026 — Zone-by-Zone Data for Condo Investors

This is the most comprehensive public rental yield analysis for Makati condominiums in 2026. Actual rent data from 200+ managed units, zone-by-zone yield breakdown, net yield calculations after all costs, and the top properties delivering the highest returns right now.

Average Gross Yield

6–7%

Best Zone Yield

7.5–8.5%

Average Net Yield

4.5–5.5%

Occupancy Rate

88–94%

OVERVIEW

Introduction

Rental yield is the most critical metric for income-focused Manila property investors — and Makati's yield profile is more nuanced than most market overviews suggest. The oft-quoted '6–7% gross yield for Makati' masks significant variation: some zones and unit types consistently deliver 7.5–8.5% gross, while others deliver a disappointing 5–5.5%. Knowing where to buy — and what to buy — is the difference between a good investment and a great one.

This analysis is based on actual rent data from properties managed by Manila property management companies, cross-referenced with current asking prices for comparable units on the secondary market. The data covers 200+ units across Legaspi Village, Salcedo Village, Poblacion, Ayala Center, and Rockwell border areas.

A critical point often missed by first-time investors: gross yield and net yield are very different numbers in Manila. After association dues (HOA), property management fees, income tax, real estate tax, and vacancy provisions, net yields in Makati run 4.5–5.5% on average. This is still excellent by international standards — far above Singapore, Hong Kong, or London equivalents — but investors must calculate net yield, not gross yield, when making decisions.

KEY DATA 2026

Investment Data at a Glance

Metric	Value
Legaspi Village — 1BR Gross Yield	6.5–7.5%
Legaspi Village — 2BR Gross Yield	6–7%
Salcedo Village — 1BR Gross Yield	6–7%
Salcedo Village — 2BR Gross Yield	5.5–6.5%
Poblacion — STR Gross Yield	8–12% (seasonal)
Ayala Center Adjacent — 1BR Gross Yield	6.5–7.5%
Outer Makati (Brio/Lerato) — 1BR Gross Yield	7–8%
Average HOA Dues (deduction)	-0.8 to -1.2%
Management Fee (deduction)	-0.6 to -0.9%
Income Tax on Rental (deduction)	-0.5 to -0.9%
Vacancy Provision (deduction)	-0.3 to -0.5%
Average Net Yield	4.5–5.5%

RENT BENCHMARKS

Actual Makati Rent Data 2026 — By Unit Type and Zone

The following rent benchmarks are derived from actual leases signed in Q1 2026 for managed units in each Makati zone. These are achievable market rents for well-presented, professionally managed units — not asking prices.

Studio (22–28sqm) — Legaspi/Salcedo

PHP 28,000–40,000/month

Strong demand from young expat singles and junior corporate assignees. Furnishing adds PHP 4,000–7,000/month premium.

1BR (38–45sqm) — Legaspi Village

PHP 50,000–80,000/month

Core expat market. Furnished premium units in Greenbelt adjacency achieving top of range consistently.

1BR (38–45sqm) — Salcedo Village

PHP 45,000–70,000/month

Corporate executive market. Achieving consistent 92–95% occupancy for well-managed furnished units.

1BR — Outer Makati (Brio, Lerato)

PHP 30,000–45,000/month

Mid-market yield play. Lower absolute rent but much lower purchase price = higher yield percentage.

2BR (65–80sqm) — Legaspi/Salcedo

PHP 80,000–130,000/month

Corporate family and senior executive market. Longer lease terms (12–24 months). Most valuable units for yield stability.

3BR (100–120sqm) — Premium Makati

PHP 130,000–200,000+/month

Senior expat, ambassador, CEO market. Low inventory drives premiums in established buildings.

NET YIELD CALCULATION

Makati Net Yield Calculation — Real Numbers

Using a typical Makati 1BR investment in Salcedo Village as a worked example: Purchase price PHP 8,500,000 (~$152K). Monthly rent: PHP 55,000 (11 months actual rent, assuming 1 month vacancy annually). Annual gross rental income: PHP 605,000. Gross yield: 7.1%.

Deductions: HOA dues PHP 4,000/month = PHP 48,000/year. Property management 10% of collected rent = PHP 60,500. Income tax (assuming 25% non-resident rate on net income) = approximately PHP 90,000. Real estate tax ~1% assessed value = PHP 30,000. Total deductions: PHP 228,500. Net income: PHP 376,500. Net yield: 4.43%.

This 4.43% net yield compares favorably with: Tokyo (2–3%), Singapore (2.5–3.5%), London (2.5–3%), Sydney (2.5–3.5%), Bangkok (3–4%). Manila Makati delivers the highest net yield of any major Asian capital market for well-located prime condominiums.

MAXIMIZING YIELD

How to Maximize Your Makati Rental Yield

The gap between average Makati yield (6.5% gross) and top-performing units (8%+ gross) comes down to four factors: unit location within the building (higher floors, pool/amenity views command 10–15% rent premium), furnishing quality and completeness (full furniture and appliances vs. semi-furnished is a 25–40% rent difference), property management quality (lowest-vacancy operators achieve 95% occupancy vs. 85% for average), and pricing strategy (units priced 5–10% below market fill in days; overpriced units sit vacant for weeks).

Highest-yield optimization checklist: (1) Buy a 1BR in Legaspi/Salcedo in a mid-range building (not ultra-luxury — the highest-yield units are not the most expensive). (2) Invest PHP 400,000–600,000 in quality furniture and appliances targeting the Japanese/Korean corporate expat market. (3) Use a property management company with a track record in the Korean/Japanese corporate expat market specifically. (4) Price at or slightly below current comparable market rent to minimize vacancy between tenancies.

REAL INVESTOR CASE STUDY

1BR 42sqm in Legaspi Village, Alveo development

Purchase Price

$148,000 USD (PHP 8.25M)

Monthly Rent

PHP 62,000 (~$1,110 USD)

Gross Yield

9.0% (PHP 62K × 12 / PHP 8.25M)

Annual Appreciation

5.8% (verified 2023–2025)

Investor Profile

Korean investor, 48, purchased for rental income

Park invested specifically for the Korean corporate tenant market in Legaspi Village. He furnished the unit in a Japanese-influenced minimal style with Samsung appliances throughout — a deliberate choice to appeal to Korean and Japanese corporate assignees.

His property manager placed a Korean automotive company executive within 10 days of unit completion. The tenant renewed for a second year. After 3 years, Park's unit has had 28 total days of vacancy — an occupancy rate of 97.4%.

At PHP 62,000/month gross, with management fee of 10%, HOA of PHP 3,200/month, and Philippine income tax paid locally, Park's net monthly income remitted to Korea is approximately PHP 48,000 (~$860 USD). Annual net yield approximately 7.0% before appreciation.

Investment Verdict

Targeting a specific ethnic expat community (Korean, Japanese) with culturally appropriate presentation and management delivers the highest occupancy rates in Makati — up to 97%+.

FAQ

Frequently Asked Questions

Gross yields average 6–7% across Makati. Premium zones (Legaspi, Salcedo) deliver 6.5–7.5% gross for quality managed units. Outer Makati (Brio, Lerato areas) delivers 7–8% gross due to lower purchase prices. Net yields after all costs average 4.5–5.5%.

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