Get all the data you need about the real estate market in The Philippines
We update this blog post regularly so the data you see here always reflects the latest available figures for the Philippines rental market.
Rental yields vary a lot depending on where you buy and what type of property you choose.
In this article, we walk you through the key numbers across the main Philippine cities and neighborhoods as of March 2026, so you can compare your options clearly.
And if you're planning to buy a property in the Philippines, you may want to download our real estate pack about the Philippines.
A quick summary table
| Metric | Value |
|---|---|
| Philippine neighborhood with best gross rental yield | Davao (2-Bedroom Townhouse) at 8.57% |
| Philippine neighborhood with lowest gross rental yield | Cebu City (3-Bedroom Villa) at 6.35% |
| Average gross rental yield across the Philippines | 7.48% |
| Average net rental yield across the Philippines | 5.86% |
| Median purchase price in the Philippine markets covered | PHP 4,100,000 |
| Average monthly rent across Philippine neighborhoods | PHP 29,400 |
| Average occupancy rate in the Philippines | 90% |
| Fastest leasing market in the Philippines | Taguig (Studio Condo) at 12 days average |
| Slowest leasing market in the Philippines | Cebu City (3-Bedroom Villa) at 25 days average |
| Highest occupancy Philippine market | Makati and Manila (1-Bedroom Condos) at 95% |
| Best value high-yield segment in the Philippines | Davao 2-Bedroom Townhouse: 8.57% gross / 6.90% net |
| Yield spread across Philippine neighborhoods | 2.22 percentage points (6.35% to 8.57%) |
Get fresh and reliable information about the market in the Philippines
Don't base significant investment decisions on outdated data. Get updated and accurate information.
Philippine neighborhoods and property types in 2026 ranked by rental yield
This table ranks the top neighborhoods and property types across the Philippines by gross rental yield.
For each neighborhood and property type, the table includes average purchase price, average monthly rent, gross rental yield, net rental yield, annual fees, average occupancy, average time to rent, main rental demand, main risk, and investment profile.
By the way, you'll find much more detailed data in our real estate pack about the Philippines.
| # | Neighborhood | Property type | Gross rental yield | Net rental yield | Average purchase price | Average monthly rent | Ownership annual fees | Average occupancy | Average time to rent | Main rental demand | Main risk | Rental Investment Profile |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Davao | 2-Bedroom Townhouse | 8.57% | 6.90% | PHP 4,200,000 | PHP 30,000 | PHP 95,000 | 92% | 15 days | Young families and retirees | High vacancy in off-peak season | Top Pick |
| 2 | Paranaque | 2-Bedroom Townhouse | 8.00% | 6.50% | PHP 4,000,000 | PHP 32,000 | PHP 95,000 | 92% | 16 days | Young professionals and families | High turnover in rentals | Strong Potential |
| 3 | Makati | 1-Bedroom Condo | 7.50% | 5.80% | PHP 4,000,000 | PHP 25,000 | PHP 100,000 | 95% | 14 days | Young professionals and expats | High competition for space | Top Pick |
| 4 | Quezon City | 2-Bedroom Apartment | 7.50% | 6.10% | PHP 2,800,000 | PHP 22,000 | PHP 90,000 | 85% | 20 days | Students and small families | Rental demand drops seasonally | Moderate Appeal |
| 5 | Muntinlupa | 3-Bedroom Condo | 7.64% | 5.70% | PHP 5,500,000 | PHP 35,000 | PHP 120,000 | 93% | 14 days | Families and expatriates | Supply-demand imbalance | Good Potential |
| 6 | Cavite | 4-Bedroom House | 7.32% | 5.90% | PHP 6,200,000 | PHP 38,000 | PHP 110,000 | 90% | 22 days | Large families and retirees | Distance from amenities | Moderate Appeal |
| 7 | Manila | 1-Bedroom Condo | 7.20% | 5.80% | PHP 3,500,000 | PHP 21,000 | PHP 100,000 | 95% | 18 days | Students and young professionals | Rent reductions during recession | Top Pick |
| 8 | Pampanga | 3-Bedroom House | 7.00% | 5.40% | PHP 4,800,000 | PHP 28,000 | PHP 100,000 | 88% | 20 days | Families and local workers | Infrastructure challenges | Moderate Appeal |
| 9 | Taguig | Studio Condo | 6.75% | 5.20% | PHP 3,200,000 | PHP 18,000 | PHP 85,000 | 90% | 12 days | Singles and young couples | Price fluctuations due to supply | Good Potential |
| 10 | Cebu City | 3-Bedroom Villa | 6.35% | 5.30% | PHP 8,500,000 | PHP 45,000 | PHP 120,000 | 80% | 25 days | Expats and foreign professionals | Property maintenance costs | Good Potential |
Don't buy the wrong property, in the wrong area of the Philippines
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
Key insights about rental yields in the Philippines
Insights
- Davao stands out as the highest-yielding market in the Philippines at 8.57% gross and 6.90% net, outperforming more well-known Metro Manila locations by over one full percentage point on net yield.
- Paranaque delivers the second-best net yield in this analysis at 6.50%, which is notable given its proximity to key Metro Manila business districts and its access to transport corridors.
- The gap between gross and net yield is much smaller in Davao (1.67 points) than in Cebu City (1.05 points), but Davao's higher gross figure still gives it a clear edge once costs are factored in.
- Makati and Manila both achieve 95% occupancy on 1-bedroom condos, confirming that small, well-located units in high-traffic urban areas are the most reliably occupied asset type in the country.
- Quezon City's 2-bedroom apartment offers a 6.10% net yield at just PHP 2,800,000, making it one of the most accessible entry points for investors looking for above-average returns without a large capital outlay.
- Cebu City's villas have the slowest average leasing time at 25 days and the lowest occupancy at 80%, suggesting that high-ticket provincial properties face real liquidity challenges that can quickly erode headline yields.
- Taguig's studio condos lease in just 12 days on average, the fastest in this dataset, reflecting strong demand from singles and young professionals in the BGC and surrounding area.
- Annual ownership fees for villas and large houses in the Philippines (PHP 110,000 to PHP 120,000) are roughly 30 to 40% higher than for compact condos and studios, which directly explains the wider spread between gross and net yields for those property types.
- Suburban markets like Pampanga and Cavite offer decent gross yields but face infrastructure and location risks that are not captured in the headline numbers, making due diligence more important in those areas.
- Properties targeting expats and foreign professionals, such as Cebu City villas and Taguig condos, tend to command higher rents in absolute terms but also carry higher costs and longer vacancy windows, which compresses their net returns compared to locally-oriented markets.
Get to know the market before buying a property in the Philippines
Better information leads to better decisions. Get all the data you need before investing a large amount of money.
About our methodology
The Philippine real estate market is spread across a wide geography, from Metro Manila's dense urban core to growing regional cities like Davao and Cebu. This makes it especially important to be precise about where data comes from and how it has been applied.
We also believe it is important to show our reasoning. It is one of the ways we make our work solid, transparent, and rigorous, just as you will see in our real estate pack about the Philippines.
First, please note that this data is updated regularly, so what you see here reflects the current values as of today.
In order to get reliable data, we applied a strict source filter. We only used authoritative, verifiable sources, not random listings or unsupported figures. More on that point below.
For each neighborhood and property type, we then aggregated the freshest purchase price and monthly rent data available. When possible, we cross-checked multiple sources to confirm the same range.
This allowed us to estimate rental yield before costs. That is the gross yield, based on annual rent versus purchase price.
We then estimated rental yield after costs. That is the net yield, after recurring ownership and operating expenses.
These expenses vary significantly between Philippine locations. A condo in Makati or Taguig carries higher association dues and management fees than a townhouse in Davao or a house in Pampanga. That is why two properties with similar headline rents can still produce very different net returns.
For example, villas in Cebu City carry high maintenance and upkeep costs due to larger floor areas and garden or pool requirements. In contrast, compact condos in Manila or Taguig benefit from lower individual ownership costs even if building fees are present.
We also estimated ownership annual fees by combining the main recurring costs linked to each asset. This includes items such as real property tax, homeowners association dues or condo corporation fees where applicable, insurance, and a maintenance allowance.
These estimates were not applied as one flat number across the country. They were adjusted by neighborhood and property type to better reflect local ownership conditions in the Philippines.
This table should therefore be read as a structured market estimate, not as an exact guarantee of future performance. Honesty, quality, and rigor are at the core of our work, and they are also what you will find in our real estate pack about the Philippines.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our real estate pack about the Philippines, we rely on verifiable sources and a transparent methodology.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's reliable | How we used it |
|---|---|---|
| Philippine Statistics Authority (PSA) | The PSA is the official government body responsible for collecting and publishing national statistics in the Philippines. | We used PSA data to cross-check rental price ranges and residential market trends across major Philippine regions. It gave us a reliable baseline for comparing urban and suburban property dynamics. |
| Bangko Sentral ng Pilipinas (BSP) | The BSP is the Philippines' central bank and publishes detailed economic and real estate sector data. | We referenced BSP reports to understand the broader economic conditions affecting the Philippine property market in 2026. This helped us contextualize yield trends within the current interest rate and inflation environment. |
| Colliers International Philippines | Colliers is a globally recognized real estate services firm with a dedicated Philippines research team producing regular market reports. | We used Colliers' quarterly Philippine property reports to source specific rental yield ranges for key Metro Manila neighborhoods. Their data on condominium supply and absorption rates also informed our occupancy estimates. |
| JLL Philippines | JLL is a major real estate advisory firm known for the quality and transparency of its local market research. | We consulted JLL's residential insights to validate rental yield figures for areas such as Makati, Taguig, and Muntinlupa. Their analysis of expat rental demand also helped us assess occupancy assumptions in those neighborhoods. |
| Lamudi Philippines | Lamudi is one of the most widely used online property platforms in the Philippines, offering large-scale listing data across the country. | We used Lamudi's listing database to gather current asking prices and rental rates for different property types and neighborhoods. This helped us ground our estimates in active market conditions rather than only institutional data. |
| Knight Frank Philippines | Knight Frank is a global real estate consultancy with a strong track record in producing investment-grade market analysis for the Philippines. | We reviewed Knight Frank's latest Philippine market outlook reports to assess investment profiles and identify risk factors by location. Their coverage of Cebu City and Metro Manila submarkets was particularly useful for this analysis. |
Thinking of buying real estate in the Philippines?
Acquiring property in a different country is a complex task. Don't fall into common traps – grab our guide and make better decisions.