Makati Area Investment Guide

Introduction

Makati City, often referred to as the financial heart of the Philippines, is the country’s premier central business district (CBD) and one of Southeast Asia’s most dynamic urban centers. Known for its high concentration of multinational corporations, upscale residences, and vibrant lifestyle offerings, Makati has long been the benchmark for property value and prestige in Metro Manila. For investors, Makati offers a rare blend of stability, growth, and global appeal.

Location and Profile

Makati is centrally located within Metro Manila, covering an area of about 27 square kilometers. Despite being one of the smallest cities by land area, it is one of the most economically significant. Its population stands at roughly 630,000 residents, but the daytime working population swells to over 1 million people as professionals commute from surrounding cities.

Makati is well connected by major roads such as EDSA and Ayala Avenue, and it is set to benefit further from ongoing infrastructure projects like the Makati Subway, the Philippines’ first intra-city subway, which will enhance connectivity and boost property demand.

Economic Significance

Makati is widely recognized as the financial capital of the Philippines. It hosts the headquarters of the country’s largest banks, the Philippine Stock Exchange, and numerous Fortune 500 companies. The city contributes an outsized share of the National Capital Region’s GDP, despite its small geographic footprint.

The economic base is service-oriented, led by:

Banking and Finance: Makati is home to the majority of the country’s top financial institutions.

Professional Services and BPOs: Law firms, consultancy agencies, and outsourcing companies have strong presence.

Retail and Hospitality: Shopping malls like Greenbelt and Glorietta, along with five-star hotels, make Makati a lifestyle hub.

For investors, this strong economic ecosystem ensures continued demand for both residential and commercial properties.

Real Estate Market Overview

Residential Properties

Makati’s residential market is synonymous with luxury living. Upscale condominiums along Ayala Avenue, Legazpi Village, and Salcedo Village cater to expatriates, high-net-worth Filipinos, and corporate executives.

Price Performance: Prime condominium units in Makati command some of the highest prices in the Philippines, with steady appreciation over the past decade.

Rental Demand: The influx of expatriates and professionals sustains a robust leasing market. Premium one- and two-bedroom units in central Makati enjoy strong occupancy and yield.

Commercial Properties

Makati remains the most prestigious office address in the country.

Office Market: Grade-A office towers around Ayala Triangle and Paseo de Roxas enjoy some of the lowest vacancy rates in Metro Manila, averaging below 10%, compared to the regional average of ~20%.

Rental Rates: Makati consistently commands premium rents, making it attractive for investors in commercial leasing.

Co-working and Flexible Space: Rising demand from startups and SMEs is boosting the co-working sector, adding diversity to the office landscape.

Retail and Hospitality

With its extensive malls, dining scene, and hotels, Makati is also a hotspot for retail investment. Foot traffic from both residents and office workers ensures strong retail demand, while international hotel brands see the city as a key location for expansion.

Investment Hotspots in Makati

Ayala Avenue and Ayala Triangle: The financial core, ideal for investors targeting premium office space.

Legazpi Village: A mix of upscale residences and boutique offices, popular among young professionals and expatriates.

Salcedo Village: Known for residential condominiums and a vibrant community feel, with weekend markets and parks.

Rockwell Center: A master-planned mixed-use development just outside the traditional CBD, offering luxury condominiums, office towers, and retail spaces.

Circuit Makati: An emerging lifestyle and entertainment district, presenting opportunities for early-stage investors.

Drivers of Investment Growth

Infrastructure Development

The Makati Subway, set to open in the coming years, will greatly improve intra-city mobility and increase property values along its stations.

Proximity to the planned Metro Manila Subway and other transit projects adds long-term upside.

Global Business Appeal

Makati continues to attract multinational corporations and embassies, reinforcing its status as the business address of choice.

Luxury Market Performance

Manila’s luxury property market ranked the fastest-growing globally in 2023, and Makati plays a central role in this surge.

Limited Supply of Prime Land

With little remaining land for new large-scale developments, scarcity supports property value appreciation.

Outlook and Opportunities

Makati’s real estate market is expected to remain resilient and attractive in the medium to long term. Demand for luxury residential properties will continue to rise, supported by expatriates, wealthy locals, and foreign investors. The office market, though challenged by remote work trends, benefits from Makati’s reputation and strategic location. Retail and hospitality assets are set to gain from tourism recovery and domestic spending.

For investors, Makati offers a combination of high rental yields, long-term capital appreciation, and prestige value unmatched by most other Philippine cities. Opportunities exist across luxury condominiums, premium office space, and mixed-use developments.

Conclusion

Makati City represents the pinnacle of real estate investment in the Philippines. Its reputation as the financial capital, coupled with world-class infrastructure, strong economic fundamentals, and a vibrant lifestyle environment, makes it a prime destination for investors.

Whether you are seeking stable rental income, capital growth, or portfolio diversification in Southeast Asia, Makati stands as one of the most compelling property markets in the region.