Makati Rental Yield by Village 2026
Rental yield varies significantly across Makati's distinct residential villages. Understanding village-level differences helps investors choose the optimal sub-area for their investment goals.
- SMDC Jazz area (Chino Roces): Studio 7–7.5% — best yield in Makati
- Salcedo Village: 1BR 7–8% — executive tenants, lowest vacancy
- Legaspi Village: 1BR 6.5–7.5% — F&B proximity adds to desirability
- Ayala CBD Corridor: 1BR 6.5–7.5% — corporate lease demand premium
- Bel-Air Village: 1BR 6–7% — residential character, mid-yield
- Rockwell Center: 1BR 5–7% — lower yield, 10–15%/yr appreciation
Gross Yield vs Net Yield in Makati
Makati property investors must understand the gap between gross and net yield. Gross yield is the starting number; net yield is what you actually receive. For Makati condos:
- HOA/Condo Dues: ₱50,000–₱100,000/year = 0.4–0.8% of purchase price deducted
- Property Management: 8–10% of gross rent = 0.6–0.8% yield reduction
- Real Property Tax: 0.3–0.5% of market value = 0.3–0.5% yield reduction
- Vacancy Allowance: Makati 2–4% vacancy = 0.14–0.32% yield reduction
- Net yield estimate: gross minus 1.5–2.2% = typical Makati net yield
Which Makati Tenants Pay the Most Rent
Makati's unique advantage is its corporate tenant pool — the most generous payers in Philippine real estate. Corporate lessees (company-paid housing) typically pay 10–20% above individual lease market rates, with longer tenancies (12–24 months) and more reliable payment. Target: multinational company employee housing programs.
- Corporate (company-paid): ₱55,000–₱85,000/month for Salcedo 1BR
- Diplomatic (embassy-paid): ₱60,000–₱100,000/month — lowest vacancy risk
- Executive individual: ₱45,000–₱70,000/month — highest volume segment
- Young professional: ₱28,000–₱42,000/month — studios, high turnover
- Long-term expat family: ₱80,000–₱150,000/month for 2BR — stable 3yr+ tenancy
How Makati Yield Compares to BGC
Makati yields slightly lower than BGC across all unit types. However, Makati compensates with: faster resale (30–40% faster secondary market), higher capital appreciation (8–12% vs BGC 6–8%), and deeper corporate tenant base. For investors prioritizing immediate income, BGC wins. For total 10-year wealth creation, the difference is minimal.