Market Analysis: Makati City Q1 2025

Source references are numbered sequentially and listed at the end of the report. 

Executive Summary

Makati: Metro Manila’s Premier Business and Lifestyle District 

This report examines Makati Central Business District (CBD), which has consistently been the Philippines’ premier financial and business hub [1] despite growing competition from newer districts. Makati CBD’s high concentration of corporate headquarters, financial institutions, and luxury developments demonstrates remarkable resilience in its office and residential real estate segments [2]. The district combines prestigious business credentials with vibrant lifestyle offerings, while projected infrastructure developments—particularly the Metro Manila Subway [3]—promise to enhance its already significant advantages.

Office Market Overview 

Makati CBD consistently showcases stronger performance metrics compared to other Metro Manila districts, reflecting its continued appeal to premium corporate tenants.

Rental Rates: Makati commands some of the highest office rental rates in Metro Manila, with Q1 2025 averages ranging between:

• Prime Grade: ₱1,390/sqm/month [8] 
• Grade A: ₱1,120/sqm/month [8] 
• Grade B: ₱945/sqm/month [8] 

Headline rates span from ₱800 to ₱1,700/sqm/month [9], depending on building quality, location within the CBD, and specific amenities. Easy Property Match estimates the 2024 average range at ₱1,300-1,500/sqm/month [10]. Despite some pressure from newer developments in competing districts, Makati’s rental rates remain stable, particularly for premium buildings [7]. 

Key Drivers & Trends: 

• Makati maintains its status as the undisputed center of Philippine finance and corporate business [4]
• Strong “flight-to-quality” trend continues, with tenants favoring newer, premium, and green-certified buildings [11] 
• Persistent demand from financial institutions, law firms, multinational corporations, and higher-value BPO operations [4] 

Residential Market Overview 

Makati’s residential market demonstrates notable resilience compared to other Metro Manila districts, particularly in the high-end and luxury segments. 

Price Levels: Makati consistently commands the highest residential prices in Metro Manila: 

• Average condominium prices range from ₱200,000 to ₱250,000 per square meter [14]
• KMC Savills cited an average condo price of ₱364,000/sqm in January 2025 [15]
• Ultra-luxury developments like The Estate Makati can exceed ₱590,000 per square meter [16] 
• Rental rates for high-end condominiums remain steady, with one-bedroom units typically ranging from ₱30,000 to ₱60,000 per month, while luxury units can exceed ₱150,000 [17] 

Despite challenges in the broader market, premium residential properties in Makati continue to draw significant interest from investors and end-users, particularly in the luxury segment [2]. 

Infrastructure & Accessibility 

Makati features a highly developed infrastructure with significant planned enhancements to strengthen its position further. 

Existing Infrastructure: 

• Well-connected road network (Ayala Avenue, Paseo de Roxas, Makati Avenue, Gil Puyat Avenue) [18]
• Comprehensive pedestrian amenities, including underpasses and elevated walkways [18]
• Direct access to MRT-3 via Ayala and Buendia stations [18] 
• Extensive public bus and jeepney routes [18] 
• Multiple multi-level parking facilities [18] 
• Premium green spaces, including Ayala Triangle Gardens and Legazpi Active Park [18] 

Planned Developments: The most significant upcoming infrastructure enhancement is the Metro Manila Subway Project, with multiple stations planned within or bordering the CBD, including Ayala Triangle, Ayala Avenue, and Senate-DepEd (near the southern edge) [3]. 

However, some locally-initiated projects face uncertainty:

• The Makati Intra-city Subway project appears to be on hold due to jurisdictional disputes with Taguig affecting planned station and depot locations [19] 
• The proposed Makati-BGC Skytrain project remains “held in abeyance” with the government, facing feasibility reviews in light of the Metro Manila Subway alignment [20] 

Other ongoing initiatives include expanding the electric vehicle charging network (with 74 points planned by Q1 2025 via ACMobility) [21] and potential adjustments to building restrictions and zoning to encourage redevelopment [22].

Key Business Presence & Amenities 

Major Companies & Industries: Makati hosts headquarters for numerous major Philippine conglomerates and multinational corporations [23]: 

• Ayala Corporation 
• Metrobank 
• BDO 
• RCBC 
• PLDT 
• Philippine Stock Exchange 
• Numerous international banks and financial institutions 
• Major law firms and consulting companies 
• Higher-value BPO operations and shared services centers [4] 

Healthcare: 

• Makati Medical Center [24], a leading private hospital 
• Numerous private clinics and diagnostic centers 

Dining & Lifestyle: 

• Extensive and sophisticated dining scene ranging from high-end fine dining restaurants to diverse international cuisines [18] 
• Premium shopping destinations (Greenbelt, Glorietta) [1] 
• Vibrant nightlife, particularly in the Poblacion area [18] 
• Cultural attractions, including the Ayala Museum [25] 
• Weekend markets at Salcedo and Legazpi parks [1] 

Livability Assessment 

Strengths: 

• Premier business address with abundant high-quality employment opportunities [25]
• High safety and security perception [18] 
• Excellent walkability within the CBD [18] 
• Outstanding shopping, dining, and entertainment options [1] 
• Presence of well-maintained parks (Ayala Triangle, Salcedo, Legazpi) [18]
• High-quality residential options, especially in the luxury condominium segment [2]
• Good access to healthcare through Makati Medical Center [18] 
• Established infrastructure and public services [25]
• Vibrant, cosmopolitan atmosphere [18]

Challenges: 

• Very high cost of living, particularly housing [25]
• Significant traffic congestion, especially during rush hours and on surrounding arteries [25] 
• Noise and air pollution in certain areas [25] 
• The corporate and image-conscious atmosphere may not appeal to all residents [18] 
• Limited affordable housing options 
• Uncertainty surrounding stalled local transport projects (Makati Subway, BGC Skytrain) [26]

HI’s Perspective / Our HI Five Score 

HousingInteractive’s analysis awards Makati CBD a High Livability rating, establishing it as one of Metro Manila’s most sought-after residential locations for those who can afford its premium positioning. 

The district offers an unparalleled urban lifestyle with exceptional convenience, amenities, safety, and professional opportunities. Its walkability, well-maintained green spaces, and vibrant dining and retail scenes create a quality of life that justifies the premium pricing for many residents. The upcoming Metro Manila Subway will further enhance connectivity, cementing Makati’s long-term value proposition. 

However, potential residents must weigh these benefits against significant costs. Beyond the high price point for property, Makati living comes with notable traffic congestion when traveling outside the CBD and an intensely urban environment that may not suit all preferences. The uncertainty surrounding locally initiated transport projects represents a minor concern but does not substantially detract from Makati’s overall appeal. 

In terms of investment, Makati continues to demonstrate remarkable resilience even during market downturns, with minimal unsold inventory and stable price appreciation in premium segments. While yields may be compressed due to high acquisition costs, the district offers stability and prestige distinct from anywhere else in Metro Manila. 

HousingInteractive concludes that Makati remains the benchmark against which other Metro Manila districts are measured, offering a mature, established CBD environment with proven staying power and ongoing evolution to meet changing urban needs.

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This report is based on market data as of Q1 2025. HousingInteractive provides this analysis for informational purposes only.

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References

[1] Makati City Travel Guide: Hotels, Things to Do, Itinerary & Tips

[2] Understanding Makati City’s Rental Market: Trends and Insights for 2025

[3] Metro Manila Subway: When Right of Way Gets in the Way | GMA News Online

[4] Makati CBD exempt from condominium oversupply – BusinessWorld Online

[5] KMC Savills Market Report – Q1 2025

[6] PHL office vacancy soars to 19.8% in 2024, expected to rise in 2025 — Colliers

[7] Manila – JLL Office Market Report Q4 2024

[8] Office Market Outlook – Lobien Realty Group (March 2025)

[9] Q1 2024 Office Market Report – Contact Center Association of the Philippines

[10] Average Office Lease Rates in Metro Manila, Philippines – 2024 – Easy Property Match

[11] From uncertainty to opportunity: Key trends shaping the 2025 office market

[12] Colliers: Property market worsens in 2024 – Manila Bulletin

[13] Manila Residential Market Dynamics Q4 2024 – JLL Philippines

[14] What are the average condo prices in Manila in 2025? – Bamboo Routes

[15] KMC Savills Residential Market Report – January 2025

[16] The Estate – Makati – Pre-Selling Condos

[17] Makati City for Expats: Your Ultimate Guide to Expat-Friendly Apartments

[18] 13+ Pros and Cons of Living in Makati: An Expat’s Super Honest View Of Makati

[19] Makati Intra-city Subway – Wikipedia

[20] AGI still keen on Skytrain monorail project – Philstar.com

[21] ACMobility to Drive Makati City’s EV Revolution with 74 Fully Operational Charging Points by Q1 2025 – Ayala Land

[22] How Makati City’s evolving zoning laws will shape its future – Philippine Daily Inquirer

[23] 2020 Top 100 Corporations In The Philippines – Makati Web Portal

[24] DBP leads grant of P5-billion syndicated term loan to Makati hospital – Development Bank of the Philippines

[25] For Property Investments, Which is Better: Rural or Urban? – Vista Residences

[26] Don’t derail Makati subway – Inquirer Opinion