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Calabarzon's real estate market offers rental yields ranging from 4% to 6% gross returns, with the best opportunities concentrated in business districts and near economic zones.
Property investors looking at Calabarzon will find condominiums and townhouses delivering competitive returns, especially in Santa Rosa, Dasmariñas, and Antipolo where demand from young professionals and families remains strong. The region's proximity to Metro Manila and ongoing infrastructure development continue to drive both rental demand and property appreciation.
If you want to go deeper, you can check our pack of documents related to the real estate market in Calabarzon, based on reliable facts and data, not opinions or rumors.
Calabarzon rental yields average 4-6% gross across most property types, with higher returns in business districts and smaller units.
Santa Rosa, Dasmariñas, and Lipa offer the most stable long-term yields, while Real and Infanta excel for short-term rental investments.
| Property Type | Average Yield | Best Areas | Average Purchase Price |
|---|---|---|---|
| Studio/1BR Condo | 5-6% | Santa Rosa, Cainta | PHP 2-3.5 million |
| 2BR Condo | 4-5% | Dasmariñas, Antipolo | PHP 3.5-5 million |
| Townhouse | 4-6% | Santa Rosa, Lipa | PHP 4-5 million |
| Single-family House | 4-5% | Dasmariñas, Antipolo | PHP 5-8 million |
| Vacation Home | 3-4% | Tagaytay, Batangas | PHP 10+ million |
| Short-term Rental | 6-8% | Real, Infanta | PHP 3-7 million |
What are the different property types available in Calabarzon and how do their rental yields compare?
Calabarzon offers four main property categories with distinct yield characteristics as of September 2025.
Condominiums represent the most accessible entry point for investors, particularly in Cainta, Santa Rosa, and Dasmariñas. These properties typically feature modern amenities that appeal to young professionals and families, generating gross rental yields between 4% and 6%. The lower purchase prices make them attractive for first-time investors.
Townhouses and single-detached houses dominate the gated subdivision market across Cavite, Laguna, and Rizal provinces. These properties offer private parking, 2-4 bedroom configurations, and community facilities. Their rental yields mirror condominiums at 4-6%, with higher returns possible when located near business parks or economic zones.
Luxury and vacation homes concentrate in premium locations like Tagaytay and Batangas, featuring scenic views and upscale amenities. However, yields in these segments may drop below 4% due to oversupply in certain vacation home markets, particularly in Batangas.
Lot-only developments cater to custom build requirements and can deliver annual appreciation rates of 7-15%, though returns depend heavily on construction timing and market conditions.
Which specific areas in Calabarzon have the highest and lowest rental yields right now?
Santa Rosa in Laguna leads the region for rental yield performance, followed closely by Antipolo in Rizal, Lipa in Batangas, and Dasmariñas in Cavite.
These high-yield areas benefit from proximity to business parks, economic zones, and educational institutions that drive consistent rental demand. Santa Rosa particularly stands out due to its concentration of manufacturing facilities and business process outsourcing companies. Antipolo offers strong yields thanks to its growing population of young professionals commuting to Metro Manila.
Smaller units and studios in these dense urban areas typically achieve the highest yield percentages, similar to Manila's benchmark of 6-8% for studio apartments. The compact living spaces command premium rents relative to their purchase prices.
Vacation markets experiencing oversupply deliver the lowest yields in Calabarzon. Tagaytay and certain areas of Batangas face downward pressure on rental returns due to surplus inventory in the luxury vacation home segment. These markets often see yields drop to 3-4% as property values remain high while rental income struggles to keep pace.
Larger luxury homes across the region also tend toward lower yield percentages, though they may offer superior capital appreciation potential over longer time horizons.
How do yields vary depending on the size or surface area of the property?
Property size creates an inverse relationship with rental yields in Calabarzon, where smaller units consistently outperform larger properties on a percentage basis.
Studio and one-bedroom units deliver the highest yields due to their ability to command premium rents relative to purchase prices. In Manila, studios achieve approximately 6.5% yields while three-bedroom units generate around 4%, and this pattern extends throughout Calabarzon's urbanized neighborhoods.
The yield advantage of smaller properties stems from rental rate efficiency - tenants pay proportionally more per square meter for compact, well-located units. Young professionals and overseas Filipino workers returning home often prefer these smaller spaces for their affordability and convenience.
Larger homes and lots typically generate lower percentage yields but may compensate with greater absolute rental income and stronger price appreciation over time. Three to four-bedroom houses appeal to families but require higher initial investments that dilute yield calculations.
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What is the average purchase price including fees and taxes for each type of property?
| Property Type | Average Price (PHP) | Additional Fees & Taxes |
|---|---|---|
| Condo Unit | 3.5 million | Transfer tax (0.5%), Stamp duty (1.5%), VAT (if new), Registration fees |
| Single-family House | 5 million | Transfer tax (0.5%), Stamp duty (1.5%), Documentary taxes, Registration fees |
| Townhouse | 4-5 million | Transfer tax (0.5%), Stamp duty (1.5%), Documentary taxes, Registration fees |
| Lot-only Development | 2.5-4.5 million | Transfer tax (0.5%), Stamp duty (1.5%), Higher appreciation potential |
| Luxury Properties | 10+ million | All standard fees plus higher documentary taxes, especially in Tagaytay |
Purchase fees and taxes typically add 2-3% to the selling price across all property categories.
Condominiums offer the most affordable entry point at PHP 3.5 million average, making them accessible to a broader range of investors. Single-family houses require approximately PHP 5 million, while townhouses fall in the PHP 4-5 million range.
Lot-only developments present variable pricing from PHP 2.5-4.5 million depending on location and size, with the potential for higher appreciation but requiring additional construction investments. Luxury properties command PHP 10 million and above, with premium locations like Tagaytay carrying additional documentary tax burdens.
What are the typical ongoing costs such as maintenance, association dues, property tax, and insurance?
Ongoing property costs in Calabarzon range from PHP 80,000 to PHP 150,000 annually for typical residential investments.
Maintenance expenses average PHP 50,000-80,000 per year for houses, while condominiums require PHP 25-50 per square meter monthly for building maintenance. These costs cover routine repairs, cleaning, and upkeep necessary to maintain rental competitiveness.
Association or homeowners association dues range from PHP 1,500-4,000 monthly for condominiums and houses, with higher fees in premium estates and developments. These dues fund common area maintenance, security, and amenities that tenants expect.
Property taxes average 1.5% of assessed value annually, though rates vary by province within Calabarzon. Local government units determine specific rates, with some areas offering incentives for new developments.
Insurance costs PHP 8,000-25,000 yearly depending on property type, value, and coverage scope. Comprehensive policies protecting against fire, natural disasters, and liability provide essential protection for rental investments.
Vacancy periods, repairs, and management fees can reduce net yields by approximately 1.5-2% beyond these direct costs, making careful expense planning crucial for accurate return calculations.
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How does mortgage financing affect the net rental yield compared to buying in cash?
Mortgage financing typically reduces net rental yields by 1-2% compared to cash purchases, primarily due to interest costs and required cash flow for loan repayments.
Recent interest rate cuts to 5.5% have made financing more attractive, narrowing the yield gap between financed and cash purchases. Lower borrowing costs mean more rental income remains after servicing debt obligations.
Leveraged purchases require careful cash flow analysis since mortgage payments occur monthly regardless of rental income fluctuations. Vacancy periods become more challenging when loan payments continue without offsetting rental receipts.
However, financing allows investors to acquire multiple properties with the same capital, potentially increasing overall portfolio returns despite lower individual property yields. This leverage effect can amplify total returns when markets appreciate.
Cash purchases eliminate interest expenses and provide immediate positive cash flow from day one of rental operations. This approach suits conservative investors prioritizing steady income over portfolio expansion.
What are the current average rental rates for different types of properties in Calabarzon?
| Property Type | Average Monthly Rent (PHP) | Short-term Rate (PHP/night) |
|---|---|---|
| Studio/1BR Condo | 15,000-25,000 | 80-120 |
| 2BR Condo | 25,000-35,000 | 120-180 |
| Townhouse | 18,000-35,000 | 100-200 |
| Single-family House | 25,000-40,000+ | 150-300 |
| Vacation/Luxury Home | 40,000-120,000 | 300-800 |
Rental rates vary significantly based on location, with properties near business districts and economic zones commanding premium pricing.
Short-term rental yields perform best in Real and Infanta, where nightly rates of PHP 89-132 can generate superior returns compared to traditional leasing. Lucena shows the weakest short-term rental performance with lower revenues and occupancy rates.
Long-term rental demand remains strongest for studio and one-bedroom units priced between PHP 15,000-25,000 monthly, reflecting the region's large population of young professionals and returning overseas workers.
What's the typical renter profile for short-term rentals versus long-term rentals in this region?
Short-term rental markets in Calabarzon primarily serve tourists, business travelers, and expatriates visiting destinations like Lucena, Real, Infanta, and Lucban.
These guests seek vacation rentals for weekend getaways, eco-tourism activities, and business trips to industrial facilities in the region. Properties near beaches, mountains, or cultural attractions perform best for short-term bookings.
Long-term rental demand comes predominantly from young professionals working in business parks, overseas Filipino workers returning home, and families relocating for employment opportunities. Santa Rosa, Antipolo, Cainta, and Lipa attract these stable, long-term tenants.
Young professionals typically rent studio to two-bedroom units for proximity to work locations, while families prefer townhouses or single-family homes in gated communities. Overseas Filipino workers often invest in condominiums for their own use while abroad, then rent them out upon return.
The growing business process outsourcing industry continues driving demand for affordable housing near major employment centers throughout Calabarzon.
How do vacancy rates differ by property type and area, and how do they affect yields?
Vacancy rates vary dramatically across Calabarzon, with oversupplied vacation areas experiencing the highest vacancy while business districts maintain the lowest.
Tagaytay and certain areas of Batangas show elevated vacancy rates due to oversupply in the luxury vacation home segment. High vacancy periods significantly impact yields by reducing annual rental income while ongoing costs continue.
Santa Rosa, Dasmariñas, and Antipolo maintain the lowest vacancy rates thanks to proximity to business parks, universities, and manufacturing zones. Consistent employment opportunities in these areas ensure steady rental demand throughout the year.
Short-term rentals face seasonal vacancy fluctuations, with peak periods during holidays and weekends but potential extended low-occupancy stretches during off-peak times. This volatility requires careful cash flow planning.
Properties near educational institutions experience predictable vacancy patterns aligned with academic calendars, while business district properties maintain more consistent occupancy year-round.
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What are the smartest choices today if I want to invest for short-term rentals versus long-term rentals?
For short-term rental investments, Real, Infanta, and Lucban offer the strongest opportunities with favorable Airbnb yields and relatively lower regulatory restrictions.
- Real provides excellent eco-tourism potential with beach access and natural attractions
- Infanta offers mountain and nature-based tourism opportunities
- Lucban attracts cultural tourists, especially during festivals
- Properties near major tourist attractions command premium short-term rates
- Consider seasonal demand patterns when calculating annual returns
For long-term rental investments, Santa Rosa, Dasmariñas, and Lipa represent the safest choices with consistent demand from business and residential growth.
- Santa Rosa benefits from major manufacturing and BPO company presence
- Dasmariñas offers proximity to both Metro Manila and Cavite industrial zones
- Lipa provides exposure to Batangas province's economic development
- One to two-bedroom units in these areas maintain steady occupancy
- Properties near transportation hubs command rental premiums
How have rents and rental yields changed over the past 5 years and over the past year?
Calabarzon property prices have increased 4-7% annually over the past five years, outpacing inflation and driven by major infrastructure development projects.
Rental yields have shown slight decline in oversupplied areas, particularly vacation markets in Tagaytay and Batangas, while core growth cities maintained steady yield performance. Infrastructure improvements including expressway extensions and public transportation projects supported rental demand.
Over the past year, the market experienced moderate growth with increased competition in short-term rental and Airbnb segments. Long-term rental demand remained steady, supported by continued economic expansion and employment growth in key business districts.
Interest rate reductions during 2025 improved financing attractiveness, encouraging new investment activity that supported rental market stability. The growing overseas Filipino worker remittances also bolstered purchasing power for both property acquisition and rental payments.
Regional infrastructure completion, including improved connectivity to Metro Manila, continues supporting property values and rental income potential across Calabarzon's major cities.
How do Calabarzon's yields today compare with other large similar cities, and what are the 1-year, 5-year, and 10-year forecasts?
Calabarzon's 4-6% rental yields position slightly below Metro Manila's 5-6% average but remain competitive with similar regional centers like Cebu at 5-5.5%.
The region underperforms compared to international markets like certain areas of Thailand that achieve 6%+ yields, but offers superior growth potential due to ongoing infrastructure development and economic expansion.
One-year forecast indicates stable demand maintaining current 4-6% yield ranges, with potential improvements in business district properties as new companies establish operations in economic zones.
Five-year projections show continued price appreciation with possible moderation in short-term rental yields if oversupply conditions persist in vacation markets. Long-term rental yields should remain stable as employment growth supports residential demand.
Ten-year outlook remains positive if infrastructure growth continues as planned, with yields likely holding current ranges while benefiting from moderate increases driven by property appreciation. The region's strategic location and economic development trajectory support sustained rental market performance.
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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.
Calabarzon offers solid rental yield opportunities for informed investors, with the best returns concentrated in business districts and near economic zones.
Santa Rosa, Dasmariñas, and Lipa provide the most stable long-term investment prospects, while Real and Infanta excel for short-term rental strategies.
Sources
- Calabarzon Property Market Analysis
- Calabarzon Real Estate Market Report
- Calabarzon Real Estate Trends
- Global Property Guide - Philippines Rental Yields
- Own Property Abroad - Philippines Rental Yields
- InvestAsian - Philippines Property Costs
- Department of Budget and Management - Housing Report
- Lobien Group - 2025 Real Estate Report
- AirROI - Calabarzon Short-term Rental Report
- UProperty Philippines - OFW Investment Guide