Premium real estate continues to grow in Makati 

This is the conclusion of my piece on Makati Central Business District (CBD). It appears that the premier financial hub is isolated from the condominium oversupply plaguing some sub-markets in Metro Manila. Makati CBD remains the preferred hub for major business process outsourcing (BPO) firms and large multinational corporations (MNCs), which is why it is no surprise that the area registers the lowest office vacancy rate in the capital region.

Makati CBD is also home to the most expensive condominium units in Metro Manila, ranging from upper mid-income to ultra-luxury residential developments. Investors in Makati CBD prefer larger unit cuts, open spaces, world-class architectural designs, top-notch concierge services, and high-end amenities. For this reason, we believe residential developers will continue launching projects with these features well beyond 2025.

HIGHER-PRICED CONDOMINIUMS PREFERRED BY AFFLUENT MARKET
In Metro Manila, demand for premium residential units is not only making a comeback but is also rebounding significantly. Luxury and ultra-luxury condominium projects typically start at P20 million ($357,000) per unit. Over the past 12 to 24 months, we have seen condominium units breaking price barriers. Some are priced between P700,000 and P900,000 per square meter ($12,500 and $16,100 per square meter), with total contract prices (TCP) ranging from P200 million to about P300 million ($3.6 million to $5.4 million) per unit. Despite these prices, projects in primary business hubs, including Makati CBD, continue to record strong take-up rates. We attribute this demand to an affluent and discerning market seeking residential units with top-tier amenities and strong capital appreciation potential.

Colliers believes the high-end market in Metro Manila remains strong, as it attracts a cash-rich consumer base. During the height of the pandemic in 2020 and 2021, while prices in the affordable to lower mid-income residential segments of the secondary market declined, demand and prices in the upper mid-income to ultra-luxury segments remained stable. As the Philippine economy rebounds and Filipino investors’ affluence and purchasing power improve, we expect even greater interest in these high-priced residential units, especially in key business districts that continue to attract large Filipino and multinational firms as locators.

UPGRADED AMENITIES TO STOKE DEMAND FROM A DISCERNING MARKET
As more upscale projects launch in Metro Manila, Colliers sees a rise in more discerning buyers. Beyond capital appreciation potential, investors and end users are drawn to upscale facilities, high-quality concierge services, and the advantage of being in a master-planned community. Colliers encourages developers to further innovate and differentiate their amenities to gain a competitive edge in the thriving luxury residential segment.

We also encourage developers to integrate sustainable features such as sensor lighting, solar panels, occupancy sensors, LED lights, and rainwater harvesting systems. In our view, adopting green and sustainable features will be a key factor in attracting consumers to invest in a condominium project.

In addition to round-the-clock security, these properties offer well-equipped gyms, resort-style pools, ample parking spaces, and high-quality interiors. These high-end residences are also within walking distance of major shopping hubs, which house a mix of popular local and global retail brands catering to residents’ refined preferences.

LIVE-WORK-PLAY-SHOP LIFESTYLE AND THE 15-MINUTE COMMUNITY RULE
Overall, we see continued demand for prime residential projects due to the convenience, accessibility, and exclusivity they provide to unit owners and renters. These are some of the reasons why business districts like Makati CBD continue to attract consular officials and high-ranking expatriates employed by multinational and foreign outsourcing firms. Upper mid-income, upscale, luxury, and ultra-luxury residential units in Metro Manila’s primary business hubs remain a cut above the rest.

I want to highlight that these residential projects are well-maintained, have occupancy rates higher than the Metro Manila average, and offer hotel-like amenities and services — major factors driving strong take-up rates, whether for lease or for sale.

WHAT’S IN STORE FOR MAKATI CBD INVESTORS?
With premium office buildings, new and upscale residential units, expansive parks, and refurbished retail spaces, there is no doubt that Makati CBD remains a top investment destination for both local and foreign investors. With residential, retail, and office vacancies below the Metro Manila-wide average, Makati CBD continues to be a business hub worth watching in the coming years. Notably, new projects are already lined up, which should further excite investors.

Makati CBD is an attractive business destination poised for redevelopment — one that will further transform the district’s property landscape.