Makati Real Estate 2026: Pros, Cons & Investment Strategies

Imagine someone who bought a house in Pembo in 2022, believing it was in Makati. Today, the house pays property taxes to Taguig, its title is registered there, and the subway planned to serve it has been canceled. The house stayed the same, but the city around it changed.

That’s what has changed in Makati real estate since our 2023 guide. Makati lost 10 barangays to Taguig, canceled its subway project, and opened Ayala Avenue to residential development. It is still the country’s top business district, but the reasons to buy there have changed.

Below: what changed, Makati property prices and rents in 2026, the main pros and cons, and the best strategy for each buyer—from OFWs to foreign condo investors.

Since 2023, four changes have mattered more to Makati buyers than any single tower launch.

The EMBO transfer and what it means for buyers

In April 2023, the Supreme Court ruled that 10 barangays in Fort Bonifacio, known as the EMBO areas, belong to Taguig. In February 2024, the Land Registration Authority moved property transactions there under Taguig’s jurisdiction. Because of the boundary change, Makati’s population fell from 629,616 in 2020 to 309,770 in 2024. However, using today’s boundaries, Makati’s population actually grew from 292,743.

For buyers, the main issue is paperwork. A property in a former EMBO barangay now pays property tax to Taguig, follows Taguig’s zoning rules, and is registered through Taguig’s Registry of Deeds. The same applies to Ospital ng Makati and the University of Makati, despite their names.

The Makati subway is off the table

The 10-kilometer subway started construction in 2018 and was expected to open by 2025. A boundary ruling placed its depot and several stations in Taguig. Partner Philippine Infradev said the project was no longer feasible and began arbitration in Singapore. The city reached a confidential settlement in January 2026, and no replacement line has been approved.

If a listing still mentions “the upcoming Makati subway,” consider it outdated and price the unit based on today’s transit: MRT-3, the EDSA busway, and nearby office buildings.

New CBD zoning opens Ayala Avenue to residential

The second revision of Makati CBD zoning rules, promoted by the estate association MACEA, allows mixed-use development. Residential towers, once banned on Ayala Avenue, are now permitted, and many sites can build more floor area. A JLL listing shows the change: 6799 Ayala Avenue, once limited to offices, is now marketed for residential and hotel use.

The Condominium Redevelopment Act also makes rebuilding residential towers easier. Under current rules, every owner must agree. The bill, approved by Congress in October 2026 and awaiting the President’s action, lowers the requirement to two-thirds for buildings aged 30 to 50 and a simple majority for those older than 50. Leechiu Property Consultants says about 26% of Makati’s tracked condo buildings fall into the older group, compared with about 3% nationwide.

The luxury wave hits a pause

Ayala Land paused Laurean Residences in April 2026 because construction costs rose, while Arthaland continued with Sondris (our ultra-luxury analysis covers both). For most buyers, the lesson is clear: top-tier pre-selling projects carry delivery risks that resale units do not.

Makati isn’t one market: a ₱5.5 million one-bedroom on Chino Roces and a ₱100 million unit in Salcedo have little in common beyond the city name.

Makati CBD core: Legazpi, Salcedo and Ayala Avenue

Makati’s premium comes from its Grade A offices, embassies, and malls like Greenbelt and Glorietta. Prices vary widely by building: older towers in Legazpi and Salcedo cost about ₱120,000 to ₱180,000 per sqm, Shang Salcedo Place costs ₱325,000 to ₱360,000, and a 242 sqm unit at Escala Salcedo costs about ₱446,000 per sqm.

Rockwell and Poblacion

Rockwell is a private community with some of Makati’s highest rents outside the CBD. A furnished 59 sqm one-bedroom unit at One Rockwell rents for ₱65,000 a month. Nearby Poblacion has older walk-up buildings, nightlife and Century City towers, with studios renting for about ₱10,000 to ₱18,000. Short stays are most popular here.

Circuit Makati and the Gil Puyat side

Circuit Makati, built on the former Santa Ana racetrack, and Ayala North Exchange offer newer properties outside the central area, but they are not cheaper. A recent resale listing at Circuit’s Calisto Tower costs about ₱420,000 per square meter.

The Makati fringe: Chino Roces, Bangkal, Pio del Pilar and San Antonio

Most rental investors buy in the fringe areas. Towers like Avida Towers San Lorenzo and The Rise cost about ₱130,000 to ₱210,000 per sqm, while furnished studios rent for around ₱20,000 to ₱25,000 a month. However, Colliers reported a 35.9% office vacancy rate in the Makati fringe in 2024, meaning these areas still depend on jobs in the city center.

Guadalupe and the EDSA side

Guadalupe Nuevo, Guadalupe Viejo, and Pinagkaisahan are the only areas left in Makati’s 2nd District. They are along MRT-3 and have the city’s most affordable property prices. Pinagkaisahan’s average residential zonal value is about ₱90,000 per sqm.

The gated villages

Forbes Park, Dasmariñas, Urdaneta, Bel-Air, San Lorenzo, and Magallanes are land markets. Santos Knight Frank reported average prices in the first half of 2024 of about ₱700,000 per sqm in Forbes Park, ₱600,000 in Dasmariñas, ₱550,000 in Urdaneta, ₱480,000 in Bel-Air, ₱400,000 in San Lorenzo, and ₱300,000 in Magallanes. Buyers usually purchase land to build family wealth, not to earn rental income.

Condo prices per square meter by tier

BalayHub’s June 2026 data shows that Makati’s median asking price is about ₱198,000 per sqm, similar to Taguig. Prices range from around ₱130,000 in older mid-rise buildings to more than ₱600,000 in new luxury projects. For a fair comparison, compare resale units with other resale units: Colliers reported that Makati CBD pre-selling units cost ₱267,000 to ₱400,000 more per sqm than secondary units in early 2025.

What a Makati condo actually rents for

LPC says average condo rents in Makati were ₱889 per sqm per month in Q3 2026, compared with ₱1,116 in BGC and ₱703 in the Bay Area. Listings range from ₱30,000 for a furnished 39 sqm 1BR at The Columns in Legazpi to ₱75,000 for a 60 sqm 1BR at One Legazpi Park.

Gross vs. net yield: a worked example

Gross yield is the yearly rent divided by the property price. Net yield is what remains after the owner pays expenses. LPC estimates gross yields for new Metro Manila purchases at 3.4% to 4.7%, or up to 5.1% with a cash discount. Here’s what causes the difference.

Makati condo tenants follow the offices, making the office market the best guide for residential buyers.

Colliers put Makati CBD’s office vacancy rate at 8.2% in September 2025, the lowest in Metro Manila, and expects it to become a landlord’s market in 2026. In the first half of 2026, Makati led the metro with about 65,000 sqm of office deals. LPC’s data also showed Makati taking 102,000 of the 154,000 sqm leased in Makati and BGC from January to May.

Savills reports a much higher vacancy rate in Makati CBD: 21.3% in the first quarter of 2026, down from 22.3%. The difference likely comes from the buildings each firm tracks. Both report little new supply and steady demand in the area.

Makati CBD has less than 2% of Metro Manila’s unsold ready-for-occupancy condos, compared with a 24.9% metro-wide vacancy rate in Q2 2026, according to Colliers. Our condo glut analysis shows where the oversupply is located.

Financing is the main challenge. The BSP raised its policy rate to 5.50% on October 22, marking its fourth consecutive increase, and will meet again on December 17. Pag-IBIG’s promotional rates end on December 31, 2026, and cover loans of up to ₱10 million—less than the price of most CBD properties.

Makati’s 2026 strength comes from depth, not growth. Its offices attract tenants, tenants support prices, and a strong resale market brings buyers back.

Holding costs also fell: Makati lowered the residential property tax rate from 1.5% to 1.0% in January 2025. A future update to property values under the RPVARA law could increase taxes, but the first-year rise is limited to 6%.

Traffic is the main risk, and with the subway cancelled, there will be no rail alternative within the city. The Metro Manila Subway’s nearest stations, at Kalayaan Avenue and BGC in Taguig, began construction in February 2026 and are expected to open in the early 2030s.

The bigger financial risk is the building’s age. Many CBD towers were built in the 1980s and 1990s, so they often have higher fees, costly repairs for elevators and facades, and competition from newer buildings. Redevelopment may offer a way out, but the majority decides the terms.

Then there’s the math. High purchase prices keep net returns around 3% to 3.5%, BGC attracts the same expatriate tenants with higher rents, and many CBD condo buildings limit short-term rentals.

The best Makati strategy depends on your goal: monthly income, preserving value, or a larger future return.

The yield play: resale studios and 1BRs near the CBD

For rental income, consider discounted ready units in fringe towers near the CBD or older CBD buildings with good reserves, priced around ₱5 million to ₱9 million. Target at least 4.5% gross rental yield, and avoid dues above ₱120 per sqm unless the rent covers them.

Capital preservation: prime CBD ready-for-occupancy units

For buyers looking for a safe investment, a newer unit in a Salcedo or Legazpi tower is like Makati’s blue-chip asset, starting at about ₱15 million. Prices rise steadily, while strong resale demand and a large pool of tenants make these units easy to sell or rent.

The redevelopment and land-value play

Patient investors can buy older CBD buildings on large lots, where the land may be worth more than the units. Once the Condominium Redevelopment Act takes effect, selling a 30- to 50-year-old tower to a developer will require approval from two-thirds of the owners. First, check the lot size, new zoning rules, and how other owners feel.

Pre-selling luxury: when it makes sense

Top-tier pre-selling works best for buyers who want a specific new address and can wait for turnover. Look for a DHSUD license to sell, a payment plan that leaves most of the balance until turnover, and a developer with a strong delivery record.

Short-term rentals in Poblacion and Rockwell

Short stays can earn more than long-term leases in Poblacion and near Rockwell, but only if the building’s master deed and rules allow them. Our short-term vs. long-term rental guide compares the numbers.

Commercial units and office condos

Small CBD office and retail units may benefit from a landlord-friendly market, but leases are longer, tenants expect fit-out support, and vacancies can last for months. They are best suited to investors who already own residential properties.

Foreign buyers: condo units only

Foreigners can own condo units in Makati if foreign ownership in the project is 40% or less, but they cannot own land. Check the condominium corporation’s current foreign-ownership ratio before reserving.

Makati and BGC have the same asking prices; BGC has higher rents, while Ortigas has lower entry prices.

BGC’s higher rents usually mean better yields, while Makati’s cheaper older properties can offer similar returns with careful buying. Ortigas is a good fit for buyers who don’t need a CBD address. See our BGC and Taguig investor guide and Ortigas deep dive for the full numbers.

Most Makati mistakes involve paperwork. Do these eight checks before paying a reservation fee.

Our guides on checking flood and fault-line risk, transferring a property title, real property tax and condo fees walk through each step in detail.

Day to day, Makati is easy to explore on foot. Covered walkways connect offices and malls, while small parks like Ayala Triangle Gardens, Washington SyCip Park, Legazpi Active Park and Jaime Velasquez Park are popular with locals.

Getting around is harder. MRT-3 stops at Guadalupe, Buendia, and Ayala, while the EDSA busway and Pasig River Ferry cover some areas. Rent is the biggest expense, costing about ₱18,000 to ₱35,000 a month for a studio or one-bedroom unit outside the newest towers.

Is Makati a good real estate investment in 2026?

For liquidity and stable tenants, yes; for fast appreciation or high cash yields, less so. Discounted resale units near the CBD offer the best entry math.

Which has better rental yields, Makati or BGC?

On averages, BGC: its condo rents run about 25% higher at a similar median asking price. But Makati’s older resale stock is cheaper per square meter, so a careful Makati buyer can match it.

Are the EMBO barangays still part of Makati?

No. The Supreme Court’s ruling became final in April 2023, and Taguig now handles titles, real property tax and permits for all 10 barangays.

Can foreigners buy property in Makati?

Foreigners can buy condo units as long as foreign ownership in the project stays at or below 40%. They can’t own land, so houses and lots in the villages are off-limits.

Where are the cheapest places to buy in Makati?

Guadalupe Nuevo, Guadalupe Viejo and Pinagkaisahan, plus older buildings in Poblacion and along Chino Roces, where asking prices start around ₱90,000 to ₱150,000 per sqm.