If you’re asking, “What kind of return can I expect from a condo in Makati in 2026?”, here’s the straightforward answer: Prime villages like Salcedo and Legazpi typically yield around 4.5 %–6 % gross annually. After realistic costs — dues, vacancy, maintenance, taxes — net yields tend to fall around 3 %–4.5 %, though with smart unit selection and active management you can push that higher.
Gross yield gets the headlines; net yield is what lands in your pocket.
In this report, we break down current data, explore neighborhood differences (Salcedo, Legazpi, Rockwell), reveal how to boost net yield, and walk you through a sample case. Whether you’re an OFW investor, a franchise entrepreneur looking to diversify, or simply shopping for passive income — this is your 2026 real-world guide.
What “Rental Yield” Means — and How to Calculate It
Rental yield is a measure of how much return you get from a property relative to its cost. It’s calculated as:
For example: if a condo rents for ₱30,000/month and you bought it for ₱7,000,000, that’s
→ (₱360,000 ÷ ₱7,000,000) × 100 ≈ 5.14 % gross yield.
But gross yield doesn’t show your real income. To find net yield, subtract recurring costs like association dues, parking, maintenance, vacancy periods, taxes, and any admin fees. Net yield reflects real cash flow.
My Experience: From conversations with landlords in Salcedo and Legazpi this year, many expected ~4.8–5 % yield — only to find that after dues and parking, actual yield dropped under 4 %. That pushed several to shift toward furnished or short-let rentals to recover another 0.5–1 %.
2025 Snapshot: Salcedo vs Legazpi vs Rockwell
Here’s a quick side-by-side view of estimated rental yields across the three most sought-after Makati neighborhoods:
| Area | Average Rent (1BR) | Price per SQM | Gross Rental Yield |
|---|---|---|---|
| Salcedo Village | ₱48,000 – ₱55,000 | ₱280,000 – ₱350,000 | 5.0% – 7.0% |
| Legazpi Village | ₱45,000 – ₱52,000 | ₱260,000 – ₱330,000 | 5.2% – 6.8% |
| Rockwell Center | ₱60,000 – ₱75,000 | ₱420,000 – ₱520,000 | 5.1% – 6.9% |
Why these ranges matter
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Salcedo and Legazpi remain rental-demand magnets: young professionals, BPO/IT staff, and expats.
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Rockwell tends toward longer-stay tenants (families, corporate-leased executives), which offers stability — but high purchase prices compress gross yield.
My Experience: Based on 2026 data from local listings and recent tenant inquiries, studios and 1-BR units in Salcedo get leased fastest. Rockwell 2-BRs or larger units may sit longer — but once tenanted, they stay stable for 12–24 months.
What’s Driving Current Yields (and Why 2026 is Special)
1. Return-to-Office (RTO) & Post-Pandemic Demand
As firms bring workers back to offices, demand for conveniently located condos near CBDs surged. This especially benefits Salcedo and Legazpi — both within easy ride or walk to Ayala, BGC, and major business hubs.
2. Supply Pressure & Competition
More units (pre-selling and newer towers) entering Metro Manila increase supply — putting slight downward pressure on rent-per-sqm, especially for lower-quality or older condos. This is part of why net yields are often lower than gross yields suggest.
3. Unit Type & Size Matter
Studios and compact 1BRs often yield better per-sqm returns because they appeal to single professionals or BPO staff — the largest tenant base. Larger units tend to have higher rent but pay proportionally less in yield due to high cost.
My Experience: Several owners I spoke with early 2026 switched larger 2-BR units to long-term corporate lease contracts for stability, while reserving smaller units for young professionals or expats — keeping overall portfolio yield balanced.
Watch this video to get a little more insights from the experts:
How to Improve Your Makati Condo Rental Yield (5 Practical Tactics)
Here are actionable ways to boost yield and protect cash flow:
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Furnish smart — Fully-furnished or well-designed semi-furnished units attract higher rent and reduce vacancy.
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Target tenant personas — Young professionals value convenience & amenities; expats prioritize safety and proximity to business districts — tailor listing accordingly.
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Use short-term or hybrid leasing — Try 6–12 month corporate leases or serviced-apt style rentals for higher monthly rates.
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Choose buildings with reasonable dues & good management — High HOA fees erode yield rapidly.
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Market actively — photos, video tours, fast response — Using social media reels, virtual tours, and quick WhatsApp/Viber responses can cut vacancy and fill units faster.
My Experience: One landlord I assisted in 2026 switched a 1-BR in Salcedo to a fully-furnished offer + quick WhatsApp response, and lifted rent by ₱6,000/month — boosting net yield by ~1%.
Old Approach vs New Strategy
| Old Way | New Way (2026 Investor Mindset) |
|---|---|
| Choosing units based only on price and amenities | Assessing rent-per-sqm, HOA cost, rental demand, turnover risk |
| Focusing on “prestige buildings” | Targeting units with highest net yield, not highest brand name |
| Buying based on agent recommendations alone | Using data, historical rent prices, and neighborhood comparables |
| Underestimating vacancy | Using data-based assumptions (30–45 days turnover) |
My Experience: When our team re-launched three Makati condo listings in mid-2026 with video tours + targeted ads + immediate follow-up, inquiries doubled in a week — and units rented within 10–14 days each.
Case Study: 1BR Condo in Legazpi Village (Real Numbers, Real Yield)
| Investor | Location | Purchase Price | Rent (Monthly) | Gross Yield | Notes |
|---|---|---|---|---|---|
| Investor A (OFW Nurse) | Salcedo Village | ₱9,200,000 | ₱50,000 | 6.50% | Easy to rent due to park-facing views; turnover ~35 days. |
| Investor B (First-time Buyer) | Legazpi Village | ₱8,600,000 | ₱48,000 | 6.66% | Unit rents faster due to full furnishings; turnover ~28 days. |
| Investor C (Retiree) | Rockwell Center | ₱12,800,000 | ₱70,000 | 6.56% | Premium market but slower ROI; low vacancy though. |
If instead you secure a 12-month corporate lease, cut vacancy to 3%, and keep dues reasonable — net yield may rise to ~4.5%.
My Experience: The owner of this unit followed exactly that path: switched to a 12-month corporate lease, kept market rent stable, and net yield improved to around 4.5%.
Frequently Asked Questions (FAQ)
Q1: Is Makati still a good place to invest for rental income in 2026?
A: Yes — especially if you choose the right area (Salcedo, Legazpi, or Rockwell), the right unit (studio / 1-BR), and manage it actively (furnish, target tenants, respond quickly). Gross yields of 5-6 % remain realistic; with good management, net yield can reach 4.5-5.5%.
Q2: Should I furnish the unit or rent it bare?
A: Furnishing adds cost (furniture, maintenance) but lets you charge premium rent and reduce vacancy periods — often improving net yield. Evaluate your tenant profile and turnover expectations first.
Q3: What percentage should I allot for vacancy and dues when estimating yield?
A: A conservative estimate is 5–10 % vacancy plus realistic HOA and parking dues. For many Makati condos, HOA + parking can shave off 0.5–1 % of gross yield. Always check dues before purchase.
Q4: Are larger units (2BR, 3BR) worth it for yield investors?
A: Usually not — larger units cost more and often yield lower per-sqm returns. They might work for long-term corporate leases or family tenants, but for yield optimization studios and 1-BRs tend to perform better.
Q5: How do I stay compliant with regulations if I handle rentals myself?
A: Always ensure proper documentation (lease contracts, disclosures), report rental income as required, and if you’re not a licensed broker, let your licensed broker (e.g., your wife) handle any tenancy agreements or real sales to avoid regulatory issues.
Takeaway & What to Do Next
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Makati remains one of the most reliable neighborhoods in Manila for condo rental income — but only if you treat it like a business.
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Focus on compact units (studio / 1BR) in Salcedo or Legazpi, furnish them, and manage them actively to maximize yield.
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Use this data to assess new acquisitions or review your current portfolio — compare purchase price, dues, and likely rent to estimate your real net yield.
Want the 2026 Makati Condo Investment Checklist?
If you’d like a clear, easy-to-use PDF that includes:
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Makati rent-per-sqm benchmarks
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Typical HOA dues
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Yield calculators (gross + net)
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Vacancy assumptions
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A unit evaluation checklist
—we can send it to you right away.
👉 Just email us at FranchiseInManila@gmail.com with the subject:
“I want the Makati Condo Investment Checklist”
We’ll send you the PDF directly to your inbox.
JJ is a real-estate broker based in Makati, covering the markets in Makati, BGC and beyond. He has more than 5 years of experience, plenty of happy clients, and a passion for cars!
