Makati CBD’s future-proofed viability as a premium residential enclave
Makati CBD stands out as business district of choice in Metro Manila.
It features upscale shopping centers, prime office towers, and premium residential enclaves which are among the most preferred by affluent residents in the country’s premier financial district. And with its seamless connectivity, it has become one of the most sought after addresses for multinational corporations and major outsourcing companies.
This demand is reflected in Makati CBD’s consistently low office, residential, and retail vacancies. Even in hospitality, business hotels and serviced apartments here continue to post strong occupancies and rising daily rates post-pandemic.
These solid demand drivers explain why Makati CBD continues to thrive despite the emergence of other business districts and micro-townships in Metro Manila.
Office landlord’s market
From 2025 to 2029, Colliers projects the completion of nearly 2 million sqm of new office space in the capital region, with Makati CBD accounting for 17 percent of the new supply.
As of end Q2 2025, office vacancy in Makati CBD reached 8.1 percent, down from the 9.3 percent recorded a year ago. Colliers projects that the Makati CBD may shift to a landlord’s market by 2026 due to the limited new supply over the next two years and sustained take-up of new office space.
In H1 2025, Makati CBD recorded 56,700 sqm of office transactions, accounting for 13 percent of the total closed deals in Metro Manila. Among the notable transactions during the period include spaces taken up by outsourcing firms, flexible workspace, and insurance firms.
Premium residential towers
From 2025 to 2029, Colliers expects the completion of 20,700 new condominium units in Metro Manila, with Makati CBD likely accounting for 12 percent of the new supply.
Due to the lack of developable land in Makati CBD, property firms have been redeveloping old and existing properties into new residential projects. Some national developers have also formed joint ventures, maximizing the core strength of each firm in building high-end and ultra luxury residential towers.
Makati CBD’s residential segment appears to be standing on solid ground. Its share to total unsold ready-for-occupancy (RFO) condominium units is only less than two percent of total unsold RFO across Metro Manila. Secondary and pre-selling condominium projects within Makati CBD are among the more expensive in the metro, especially those along Ayala Avenue.
These developments include the iconic Apartment Ridge along Ayala Avenue, considered as the preferred residential enclave of business executives and diplomats in the Philippines’ premier financial hub.
The Apartment Ridge is a proof that there is a dearth of developable land within Makati CBD. That’s why it is no longer surprising to see projects built along the stretch recording solid capital appreciation throughout the years, while pre-selling projects have been posting strong sales performance despite being among the most expensive within Makati CBD.
The pre-selling upper and ultra luxury projects (at least P50 million a unit) within Makati CBD enjoy very good take-up rates, ranging from north of 50 percent to nearly 80 percent as of Q2 2025.
This indicates that residential developers that cater to the affluent market in Makati are recording robust strong sales velocities. This also proves that this “awash with cash” market continues to outperform other residential price segments in the capital region.
Strong take-up amid slowdown
What’s important to note amid the condominium slowdown issue is the fact that this persisting challenge in the capital region does not cover all sub-markets and price segments.
Makati CBD, for instance, continues to be one of the most, if not the most desired address of large, multinational firms and their employees. Local employees continue to flock to the business hub, resulting in greater take-up of condominium units for sale and lease in Makati CBD.
Colliers Philippines also doesn’t see a sizable addition to Makati CBD’s RFO condominium stock, unlike other locations that had sizable completion especially from 2017 to 2019.
With other things being constant and with limited addition to total RFO supply in the business hub (Makati CBD covers only 0.1 percent of total unsold RFO units in Metro Manila as of Q2 2025), we expect prices and rents in Makati CBD to increase beyond 2025.
These indicators prove why the Makati CBD residential market has been able to stand the test of time. With strong fundamentals, Makati CBD should continue to be a viable investment hub for premium residential investment in the years to come.
