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Manila's rental market offers compelling opportunities for property investors in 2025.
As of September 2025, the Manila rental market presents a complex landscape with average condo rents of ₱26,927 monthly, significant variations between central business districts and suburban areas, and rental yields averaging 5.12% across Metro Manila. The market is currently experiencing high vacancy rates of 24-26% due to condo oversupply, but smart investors can still find profitable opportunities in prime locations like Makati, BGC, and Ortigas.
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Manila rental prices vary dramatically from ₱9,687/month for apartments outside the city center to ₱180,000/month for luxury condos in prime business districts.
Central business districts like BGC command premium rents of ₱1,191/sqm while suburban areas offer more affordable options at ₱700-900/sqm.
| Location | Property Type | Average Monthly Rent | Rental Rate per sqm | Typical Rental Yield |
|---|---|---|---|---|
| BGC (Taguig) | 1BR Condo | ₱30,000-₱40,000 | ₱1,191 | 4.5-5.5% |
| Makati CBD | Studio Condo | ₱25,000-₱35,000 | ₱1,001 | 4.5-5.0% |
| Ortigas | 1BR Condo | ₱20,000-₱28,000 | ₱765 | 5.0-5.5% |
| Quezon City | 1BR Apartment | ₱10,000-₱22,000 | ₱800 | 5.5-6.0% |
| Manila City | 1BR Apartment | ₱12,000-₱22,000 | ₱900 | 5.0-6.0% |
| Suburban Areas | 3BR House | ₱20,406 | ₱700-800 | 5.5-6.5% |
| City Center | 3BR House | ₱36,272 | ₱900-1,000 | 4.0-5.0% |
What's the average monthly rent for condos, apartments, and houses in Manila?
Manila's rental market shows significant variation across property types as of September 2025.
Condos command the highest rents with a median of ₱26,927 per month for typical units. Studio condos in premium locations like Makati CBD range from ₱25,000 to ₱35,000 monthly, while luxury two-bedroom condos in prime areas can reach ₱120,000 to ₱180,000 per month.
Apartments offer more affordable options with one-bedroom units in the city center averaging ₱17,160 monthly. Outside the city center, these same apartments drop to approximately ₱9,687 per month, making them attractive for budget-conscious renters.
Houses represent the middle ground with three-bedroom properties in city center locations averaging ₱36,272 monthly. Suburban houses offer better value at ₱20,406 per month for similar three-bedroom configurations.
These rental rates reflect Manila's position as an affordable regional hub compared to other Southeast Asian capitals.
How do rents differ between central business districts and suburban areas?
Central business districts command significant premiums over suburban locations in Manila's rental market.
BGC in Taguig leads with the highest rental rates at ₱1,191 per square meter, followed closely by Makati at ₱1,001 per square meter. These premium CBDs attract expatriate professionals and multinational corporations willing to pay for convenience and prestige.
Ortigas and Mandaluyong represent the mid-tier CBD option at approximately ₱765 per square meter. These areas offer good connectivity and modern amenities at more moderate pricing.
Suburban areas like Parañaque, Las Piñas, and outer Quezon City deliver the best value proposition with rental rates below ₱800 per square meter. These locations appeal to families and local professionals seeking space and affordability.
The premium differential between prime CBDs and suburban areas can exceed 50%, making location choice critical for both tenants and investors.
What's the breakdown of rental prices per square meter by property type and location?
| Location | Rental Rate per sqm (PHP) | Property Price per sqm (PHP) | Typical Property Types |
|---|---|---|---|
| BGC (Taguig) | ₱1,191 | 220,000-270,000 | Luxury condos, modern towers |
| Makati CBD | ₱1,001 | 200,000-250,000 | Business district condos, offices |
| Ortigas/Mandaluyong | ₱765 | 110,000-200,000 | Mid-range condos, mixed-use |
| Quezon City | ₱800 | 100,000-150,000 | Residential condos, apartments |
| Manila City | ₱900 | 90,000-140,000 | Student housing, older buildings |
| Suburban Areas | ₱700-800 | 70,000-130,000 | Houses, townhomes, budget condos |
What are typical total monthly costs including association dues and utilities?
Total monthly housing costs extend well beyond base rent in Manila's condo market.
A typical 35-square-meter condo in Makati CBD with base rent of ₱30,000 incurs additional costs of ₱2,800 to ₱5,250 for association dues plus approximately ₱3,000 for utilities. This brings total monthly costs to ₱36,000 to ₱38,000.
Three-bedroom houses in city center locations cost approximately ₱36,272 monthly for rent alone, with utilities and maintenance fees typically adding another ₱5,000 to ₱8,000 monthly.
Suburban apartments offer the most economical option at around ₱10,000 monthly rent with minimal association dues, as many older buildings lack extensive amenities.
High-end BGC condos can see association fees reach ₱150 per square meter monthly, significantly impacting total occupancy costs for luxury units.
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How do taxes, management fees, and mortgage costs affect landlord returns?
Property ownership costs significantly impact net rental yields for Manila landlords.
Property taxes range from 0.8% to 1.2% of assessed value annually, representing a substantial ongoing expense for property owners. Management and association fees typically cost ₱80 to ₱150 per square meter monthly in modern developments.
Mortgage financing carries interest rates between 6% and 9% on principal amounts, creating significant carrying costs for leveraged investors. These rates have remained elevated due to central bank monetary policy.
After accounting for all expenses including taxes, association dues, vacancy costs, and potential mortgage payments, actual net yields typically fall to 3.5% to 4.5% versus headline rental yields.
Smart landlords factor these costs when evaluating potential investments, as gross yields can be misleading without comprehensive expense analysis.
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What do current rental yields look like across different areas?
Metro Manila rental yields average 5.12% as of September 2025, offering competitive returns compared to regional markets.
Higher yields concentrate in more affordable districts where property prices remain moderate relative to rental income. Areas like Quezon City and Manila City can deliver yields of 5.5% to 6.0% for well-located properties.
Premium areas like BGC and Makati typically generate yields closer to 4.5%, but these locations offer greater potential for capital appreciation over time. The trade-off between current income and future growth defines investment strategy in these markets.
Suburban areas can achieve yields of 5.5% to 6.5% due to lower acquisition costs, making them attractive for income-focused investors seeking steady cash flow.
Current yields represent a marginal decline from Q3 2024 levels of 5.36%, reflecting ongoing market adjustments following pandemic-era disruptions.
How have rents and yields changed over the past five years and one year?
Manila's rental market has experienced significant volatility over the past five years following pandemic disruptions.
Five years ago, rents and yields peaked during the initial POGO (Philippine Offshore Gaming Operator) rush when Chinese gaming companies drove exceptional demand for premium accommodations. This artificial demand bubble subsequently moderated post-pandemic due to supply glut and stricter regulatory oversight.
Compared to one year ago, yields have slipped from 5.19% in Q1 2024 to current levels of 5.12%. BGC has shown resilience with rents recovering to 8% above 2020 levels, reaching current rates of ₱1,191 per square meter.
Makati and Ortigas continue struggling with rents still 8% and 21% below Q1 2020 levels respectively. This divergence reflects varying recovery speeds across different business districts.
The overall trend shows gradual stabilization as the market absorbs excess inventory while demand slowly rebuilds from traditional sources.
What's the forecast for rent levels and yields over the next decade?
Manila's rental market outlook shows cautious optimism with gradual improvement expected over multiple timeframes.
Over the next year, slight upward rent pressure is anticipated in established CBDs due to limited new supply coming online. Fringe areas will likely continue slow recovery as existing inventory remains elevated, with modest yield decline expected due to gradual price appreciation.
The five-year outlook anticipates market stabilization as oversupply from previous development cycles gets absorbed. Rental increases should materialize as demand-supply balance improves, with yields stabilizing at 4.5% to 5% in prime districts but remaining lower in the luxury segment.
Looking ahead ten years, continued urbanization and infrastructure development may drive significant capital appreciation and rental increases. New central business districts emerging from major infrastructure projects could create additional investment opportunities.
These forecasts assume continued economic growth and political stability supporting sustained urban development and population growth in Metro Manila.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the Philippines versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What's the current vacancy rate and how does it vary by location?
Metro Manila faces elevated vacancy rates of 24% to 26% as of Q2-Q3 2025, representing among the highest levels in Southeast Asia.
Manila Bay areas including Pasay show the most severe oversupply with vacancy rates reaching 56.5%. These waterfront developments suffered from speculative overbuilding during the POGO boom years.
Established business districts like BGC and Makati maintain healthier fundamentals with vacancy rates below 20%. Their superior locations and established tenant bases provide greater resilience during market downturns.
Student housing areas and mid-market segments continue experiencing pressure from reduced international student enrollment and corporate downsizing following pandemic adjustments.
These elevated vacancy rates create opportunities for tenants to negotiate favorable lease terms while challenging property owners to differentiate their offerings through pricing and amenities.
Who are the main renter profiles and what do they seek?
Manila's rental market serves diverse tenant profiles with distinct location and amenity preferences.
Expatriate professionals and young Filipino professionals gravitate toward BGC, Makati, and Ortigas CBDs seeking furnished, amenity-rich condos with security, proximity to work, and modern facilities. These tenants prioritize convenience and lifestyle amenities over space efficiency.
Filipino families typically prefer larger units or houses in Quezon City, Pasig, and Alabang areas with access to green space, quality schools, and family-friendly environments. They often seek longer-term lease arrangements and value community amenities.
Students concentrate around Manila City's University Belt area, Mandaluyong, and accessible transit corridors preferring studio apartments or purpose-built student accommodation with affordable rents and study-friendly environments.
Corporate lease clients engage in long-term contracts for staff housing in prime locations, often seeking bulk arrangements for multiple units with standardized specifications and professional management services.
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Should property owners choose short-term rentals or long-term leases?
The choice between short-term and long-term rental strategies depends on location, target market, and management capacity in Manila.
Short-term rentals through platforms like Airbnb offer high occupancy potential in tourist spots and business districts but face increasingly tough regulations, higher management workload, and significant turnover costs. BGC and Makati locations can command premium nightly rates from business travelers.
Long-term leases provide more stable returns with lower vacancy risk and reduced management intensity. These arrangements work best in family-oriented districts and areas with consistent local demand.
Property owners in high-vacancy areas should consider flexible hybrid approaches including furnished units for short-term corporate assignments or flexible lease terms for international relocations.
Student accommodation represents a specialized niche requiring purpose-built facilities but offering stable academic-year income with predictable seasonal patterns.
Current market conditions favor long-term strategies due to elevated vacancy rates making tenant retention increasingly valuable for consistent income generation.
How do Manila rents and yields compare with other Southeast Asian cities?
Manila positions competitively within the Southeast Asian rental market offering attractive yields despite lower absolute rental levels.
| City | Average Condo Price (PHP/sqm) | Gross Rental Yield | Monthly Rent Range (1BR) |
|---|---|---|---|
| Manila | 120,000-180,000 | 5.0-5.5% | ₱15,000-30,000 |
| Bangkok | 120,000-180,000 | 4.2% | ₱18,000-35,000 |
| Kuala Lumpur | 120,000-180,000 | 4.5% | ₱16,000-28,000 |
| Singapore | 300,000+ | 2.5-3.0% | ₱60,000-120,000 |
| Ho Chi Minh City | 80,000-150,000 | 5.5-6.0% | ₱12,000-25,000 |
| Jakarta | 90,000-160,000 | 5.0-5.5% | ₱14,000-28,000 |
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Manila's rental market in 2025 presents both challenges and opportunities for property investors and tenants.
While elevated vacancy rates create favorable conditions for tenants, strategic investors can find value in prime locations with strong fundamentals and potential for long-term appreciation. Success requires careful market analysis and realistic expectations about current conditions versus future potential.
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Sources
- DMCI Homes - Why People Rent Condos
- Tribune - Cost of Living in Philippines
- Wise - Cost of Living Manila
- BambooRoutes - Manila Average Condo Prices
- BambooRoutes - Average Condo Price Manila
- Inquirer Business - BGC Rental Recovery
- Global Property Guide - Philippines Price History
- Bed & Go - Manila Rental Market Outlook 2025
- BusinessWorld - NCR Vacancy Rate Forecast
- Housing Interactive - Manila Market Analysis Q1 2025