Authored by the expert who managed and guided the team behind the Philippines Property Pack
Yes, the analysis of Manila's property market is included in our pack
If you're a foreigner thinking about buying an apartment in Manila to rent it out, the first question on your mind is probably: what kind of rental yield can I actually expect?
We've put together all the numbers, costs, and neighborhood insights you need to figure out whether Manila's rental market works for your investment goals.
This blog post is updated regularly as new data becomes available, so you're always getting current information.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Manila.
What rental yields can I realistically get from an apartment in Manila?
What's the average gross rental yield for apartments in Manila as of 2026?
As of early 2026, the average gross rental yield for apartments in Manila sits around 4.2%, which is a practical planning figure that blends the city's premium and mid-market segments together.
That said, most apartment investments in Manila fall within a 3% to 5.5% gross yield range, with prime locations like Makati CBD and BGC typically delivering 3% to 3.8%, while mid-market areas such as Mandaluyong and parts of Quezon City can push yields up to 4% to 5.5%.
The main factor causing gross rental yields to vary so much between apartments in Manila is the lingering oversupply from the POGO (offshore gaming) sector unwind, which hit some buildings and submarkets harder than others, meaning two condos in the same city can have very different vacancy and rent recovery stories.
Compared to other major Southeast Asian cities, Manila's gross rental yields are moderate rather than high, sitting closer to Bangkok's levels and well below what you might find in emerging regional markets, because Manila's property prices stayed relatively sticky even as rents softened.
What's the average net rental yield for apartments in Manila as of 2026?
As of early 2026, the average net rental yield for apartments in Manila is around 2.8%, which is what remains after you subtract all the real costs that landlords face in this market.
Most apartment investors in Manila can realistically expect net yields between 1.8% and 3.8%, with prime condos in Makati and BGC landing on the lower end (1.8% to 2.6%) and mid-market properties in areas like Mandaluyong reaching the higher end (2.6% to 3.8%).
The single biggest expense category eating into your gross yield in Manila is condominium association dues, which can run 10% to 20% of your monthly rent and don't drop when rents soften, making them especially painful in amenity-heavy towers with pools, gyms, and 24-hour security.
By the way, you will find much more detailed data in our property pack covering the real estate market in Manila.
What's the typical rent-to-price ratio for apartments in Manila in 2026?
As of early 2026, the typical rent-to-price ratio for apartments in Manila ranges from about 0.25% to 0.46% per month, which translates to the 3% to 5.5% annual gross yield range we mentioned earlier.
Most apartment transactions in Manila fall within a 0.30% to 0.40% monthly rent-to-price ratio, meaning for every 10 million pesos you spend on a condo, you can expect somewhere between 30,000 and 40,000 pesos in monthly rent.
The highest rent-to-price ratios in Manila tend to show up in mid-market areas like Mandaluyong near the Shaw Boulevard MRT corridor, parts of Pasay around the Mall of Asia complex, and value pockets in Quezon City, where purchase prices are more negotiable but worker-driven rental demand keeps occupancy solid.
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How much rent can I charge for an apartment in Manila?
What's the typical tenant budget range for apartments in Manila right now?
The typical tenant budget for renting an apartment in Manila in early 2026 ranges from around 15,000 to 70,000 pesos per month (roughly $260 to $1,200 USD or €240 to €1,100 EUR), which covers most of the local professional and mid-market rental activity.
Tenants targeting mid-range apartments in Manila typically budget between 35,000 and 70,000 pesos per month ($600 to $1,200 USD or €560 to €1,100 EUR), which gets you a newer one-bedroom or compact two-bedroom in areas like Mandaluyong, Ortigas, or the edges of Makati with decent building management.
For high-end or luxury apartments in Manila, expat and corporate tenants budget 70,000 to 180,000+ pesos per month ($1,200 to $3,100+ USD or €1,100 to €2,900+ EUR), and these renters typically look in Makati CBD's Salcedo and Legazpi Villages, BGC's High Street area, or Rockwell Center.
We have a blog article where we update the latest data about rents in Manila here.
What's the average monthly rent for a 1-bed apartment in Manila as of 2026?
As of early 2026, the average monthly rent for a 1-bed apartment in Manila ranges from about 22,000 to 40,000 pesos citywide ($380 to $690 USD or €350 to €645 EUR), while prime locations push that up to 35,000 to 60,000 pesos ($600 to $1,035 USD or €565 to €970 EUR).
At the entry level, a decent 1-bed apartment in Manila rents for around 18,000 to 25,000 pesos per month ($310 to $430 USD or €290 to €405 EUR), and this typically means an older building in Sampaloc near universities, a basic tower along EDSA in Quezon City, or a studio-style layout in Pasay that's been converted into a 1-bed.
A typical mid-range 1-bed apartment in Manila goes for 28,000 to 40,000 pesos per month ($480 to $690 USD or €450 to €645 EUR), which gets you a 35 to 45 square meter unit in a newer Mandaluyong tower near Greenfield District, a mid-tier Ortigas condo, or a decent building along Shaw Boulevard with MRT access.
For a luxury 1-bed apartment in Manila, expect to pay 45,000 to 65,000+ pesos per month ($775 to $1,120+ USD or €725 to €1,050+ EUR), and this means a well-finished unit in a premium Makati CBD tower like those in Salcedo Village, a high-floor BGC condo near High Street, or a furnished unit in Rockwell Center with full amenities.
What's the average monthly rent for a 2-bed apartment in Manila as of 2026?
As of early 2026, the average monthly rent for a 2-bed apartment in Manila ranges from about 40,000 to 80,000 pesos citywide ($690 to $1,380 USD or €645 to €1,290 EUR), while prime locations command 70,000 to 140,000 pesos ($1,210 to $2,415 USD or €1,130 to €2,260 EUR).
At the entry level, a decent 2-bed apartment in Manila rents for around 35,000 to 50,000 pesos per month ($600 to $860 USD or €565 to €805 EUR), which typically means an older but well-maintained building in Manila City, a basic tower in the Cubao area of Quezon City, or a converted layout in a Pasay building near the bay area.
A typical mid-range 2-bed apartment in Manila goes for 55,000 to 85,000 pesos per month ($950 to $1,465 USD or €890 to €1,370 EUR), getting you a 60 to 75 square meter unit in a good Mandaluyong tower along Boni Avenue, a mid-tier Ortigas Center condo, or a newer building in Kapitolyo or San Antonio in Pasig.
For a luxury 2-bed apartment in Manila, expect to pay 90,000 to 150,000+ pesos per month ($1,550 to $2,585+ USD or €1,450 to €2,420+ EUR), and this means a spacious unit in a top-tier Makati CBD building, a premium BGC tower like those near Burgos Circle, or a family-sized condo in Rockwell's Power Plant Mall area.
What's the average monthly rent for a 3-bed apartment in Manila as of 2026?
As of early 2026, the average monthly rent for a 3-bed apartment in Manila ranges from about 70,000 to 140,000 pesos citywide ($1,210 to $2,415 USD or €1,130 to €2,260 EUR), while prime locations command 120,000 to 250,000+ pesos ($2,070 to $4,310+ USD or €1,935 to €4,030+ EUR).
At the entry level, a decent 3-bed apartment in Manila rents for around 60,000 to 85,000 pesos per month ($1,035 to $1,465 USD or €970 to €1,370 EUR), which typically means an older building in established areas like Greenhills in San Juan, a basic tower in the Araneta Center area of Quezon City, or a larger unit in a secondary Pasig location away from Ortigas Center.
A typical mid-range 3-bed apartment in Manila goes for 95,000 to 130,000 pesos per month ($1,640 to $2,240 USD or €1,530 to €2,100 EUR), getting you a 100 to 120 square meter unit in a good Ortigas tower, a family-friendly building in the Pioneer or Kapitolyo areas of Mandaluyong and Pasig, or a newer development in the Vertis North area of Quezon City.
For a luxury 3-bed apartment in Manila, expect to pay 140,000 to 280,000+ pesos per month ($2,415 to $4,830+ USD or €2,260 to €4,515+ EUR), and this means a premium unit in Makati CBD's Ayala Avenue corridor, a large family condo in BGC's Serendra or Grand Hyatt Residences area, or a top-floor unit in Rockwell's Edades or Joya towers.
How fast do well-priced apartments get rented in Manila?
A well-priced apartment in Manila typically gets rented within 1 to 3 weeks in prime areas like Makati CBD or BGC, while most normal units across the city take around 3 to 8 weeks to find a tenant.
The typical vacancy rate for apartments in Manila in early 2026 hovers around 15% to 20% in oversupplied submarkets, though well-managed buildings in high-demand locations can maintain vacancy rates closer to 8% to 12%.
The main factors that cause some apartments in Manila to rent much faster than others are flood resilience (tenants actively avoid ground floors in flood-prone areas like parts of Pasig), reliable backup power and water (because brownouts and water pressure issues are real differentiators between buildings), and walkable access to MRT stations or major job centers in Makati, BGC, or Ortigas.
And if you want to know what should be the right price, check our latest update on how much an apartment should cost in 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.
Which apartment type gives the best yield in Manila?
Which is better for yield between studios, 1-bed, 2-bed and 3-bed apartments in Manila as of 2026?
As of early 2026, studios and compact 1-bed apartments typically offer the best rental yield in Manila, followed by standard 1-beds, then 2-beds, with 3-bed units generally delivering the lowest yields.
The typical gross rental yield range in Manila breaks down roughly as follows: studios can achieve 4.5% to 5.5%, compact 1-beds around 4% to 5%, standard 1-beds about 3.5% to 4.5%, 2-beds typically land at 3% to 4%, and 3-beds often fall to 2.5% to 3.5%.
The main reason smaller units outperform in Manila is that the deepest tenant pool consists of young local professionals and entry-level expats who can only afford smaller units, so in many towers the rent per square meter for compact layouts runs significantly higher than for large family-sized apartments that attract a much thinner buyer and renter market.
Which features are best if you want a good yield for your apartment in Manila?
The features that most positively impact rental yield for apartments in Manila are walkable access to MRT or major job centers (because Manila traffic makes commute relief extremely valuable), fiber-ready internet for hybrid workers, reliable backup power and water pressure, and a flood-resilient location on higher floors in buildings with good drainage.
In Manila, higher floors generally rent out faster and command better rents because tenants want to avoid flood risk, street noise from jeepneys and tricycles, and security concerns, though the premium drops off above the 15th floor unless there's a standout view of Manila Bay or the Makati skyline.
Apartments with balconies do command a modest rent premium in Manila, especially in dense areas like Makati CBD or BGC where outdoor space is scarce, but the premium rarely exceeds 5% to 10% and needs to be weighed against higher dues for buildings with more balcony maintenance requirements.
Building features like elevators, 24-hour concierge, and dedicated parking can raise rents in Manila, but the higher service charges in amenity-heavy towers (pools, gyms, function rooms) often eat into yields, so the sweet spot for returns is usually a well-run mid-tier building with reliable basics rather than a luxury tower where dues can reach 15% to 20% of rent.
Don't buy the wrong property, in the wrong area of Manila
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Which neighborhoods give the best rental demand for apartments in Manila?
Which neighborhoods have the highest rental demand for apartments in Manila as of 2026?
As of early 2026, the neighborhoods with the highest rental demand for apartments in Manila are Bonifacio Global City (especially the High Street and Burgos Circle areas), Makati CBD (particularly Salcedo Village and Legazpi Village), Rockwell Center, Ortigas Center in Pasig, and the Shaw Boulevard corridor in Mandaluyong near Greenfield District.
The main demand driver making these Manila neighborhoods attractive is job proximity, because tenants will pay a premium to avoid the city's notorious traffic, and these areas concentrate the headquarters of major corporations, BPO companies, and multinational offices where most well-paying tenant jobs are located.
In these high-demand Manila neighborhoods, well-priced apartments typically rent within 1 to 3 weeks, and vacancy rates run noticeably lower at around 8% to 12% compared to the citywide average of 15% to 20%.
One emerging neighborhood gaining rental demand momentum in Manila is the Vertis North area near North Avenue in Quezon City, which is attracting mid-income tenants priced out of BGC and Makati but who still want good MRT access and newer building stock.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Manila.
Which neighborhoods have the highest yields for apartments in Manila as of 2026?
As of early 2026, the neighborhoods with the highest rental yields for apartments in Manila are the Pasay Bay Area around the Mall of Asia complex, parts of Mandaluyong near Boni and Shaw (outside the premium towers), Manila City fringe areas like Sampaloc near universities, and value pockets in Quezon City away from the most premium developments.
The typical gross rental yield range in these top-yielding Manila neighborhoods runs from about 4.5% to 5.5%, compared to the 3% to 3.8% you would get in premium areas like Makati CBD or BGC.
The main reason these neighborhoods offer higher yields than others in Manila is that purchase prices softened significantly during the POGO unwind and oversupply period, but rental demand from local workers, students, and hospital staff remains steady, creating a favorable rent-to-price ratio that prime areas cannot match.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the Philippines. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
Should I do long-term rental or short-term rental in Manila?
Is short-term rental legal for apartments in Manila as of 2026?
As of early 2026, short-term rentals are generally legal for apartments in Manila, but the practical answer depends heavily on your specific condo building's rules, your local government unit's permit requirements, and your tax compliance setup.
The main legal restrictions for operating a short-term rental apartment in Manila are condominium corporation rules (many buildings restrict or ban stays under 30 days), barangay clearances and city hall business permits, and Bureau of Internal Revenue registration for income reporting purposes.
For Airbnb-style rentals in Manila, there is no single national registration system, but the Department of Tourism does have accreditation rules for accommodation establishments, and some landlords operating at scale do register to stay compliant with these regulations and local tax requirements.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Manila.
What's the gross yield difference short-term vs long-term in Manila in 2026?
As of early 2026, short-term rentals in Manila can generate roughly 0% to 30% higher gross income than long-term rentals for an average unit, and up to 30% to 60% more for best-in-class units with great locations, professional photos, and strong reviews.
The typical gross yield range for short-term rentals in Manila sits around 5% to 7% for well-run units, compared to 3% to 5% for long-term rentals, but these numbers assume you are actually achieving solid occupancy rates.
The main additional costs that reduce the net yield advantage of short-term rentals in Manila include cleaning fees between guests (around 500 to 1,500 pesos per turnover), utilities that you pay instead of the tenant, platform fees of 3% to 15%, heavier wear and tear requiring more frequent refurbishment, and potentially higher insurance premiums.
To outperform a long-term rental in Manila, a short-term rental typically needs to achieve at least 55% to 65% occupancy, which is achievable in high-demand areas like Makati CBD or BGC but challenging in oversupplied submarkets or buildings with strict admin that makes check-in difficult for guests.
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What costs will eat into my net yield for an apartment in Manila?
What are building service charges as a % of rent in Manila as of 2026?
As of early 2026, typical building service charges (called condo association dues in Manila) run about 10% to 15% of monthly rent for most apartments, though amenity-heavy towers can push that to 15% to 20% of rent, which translates to roughly 5,000 to 15,000 pesos per month ($85 to $260 USD or €80 to €240 EUR) for a typical unit.
The realistic range of building service charges in Manila spans from around 8% of rent for basic older buildings up to 20% or more for premium towers, with absolute amounts ranging from 3,500 pesos per month ($60 USD or €55 EUR) in simple buildings to 25,000+ pesos ($430+ USD or €400+ EUR) in luxury developments like Rockwell or top-tier BGC towers.
The services that justify higher-than-average dues in Manila are 24-hour security with multiple guard posts (essential given local safety concerns), reliable backup generators for brownouts, well-maintained swimming pools and gyms, and professional property management from established firms like Ayala Property Management Corporation which tenants recognize and trust.
What annual maintenance budget should I assume for an apartment in Manila right now?
A typical annual maintenance budget for an apartment in Manila should be around 0.3% to 0.7% of the property value, which works out to roughly 30,000 to 100,000 pesos per year ($520 to $1,725 USD or €485 to €1,615 EUR) for a mid-range condo worth 10 to 15 million pesos.
The realistic range of annual maintenance costs in Manila depends heavily on apartment age and building condition, running from about 20,000 pesos per year ($345 USD or €320 EUR) for a newer unit in good condition up to 150,000+ pesos ($2,585+ USD or €2,420+ EUR) for older units needing regular repairs to plumbing, air conditioning, or water damage remediation.
The most common maintenance expenses Manila apartment owners face annually are air conditioning servicing and repairs (essential in the tropical climate and typically needed twice yearly), water heater replacement every few years, repainting and mold treatment (humidity is relentless), and appliance replacement cycles that run faster than in temperate climates due to heavy AC use and voltage fluctuations.
What property taxes should I expect for an apartment in Manila as of 2026?
As of early 2026, the typical annual property tax (called Real Property Tax or RPT in the Philippines) for an apartment in Manila runs about 0.2% to 0.6% of market value, which translates to roughly 20,000 to 90,000 pesos per year ($345 to $1,550 USD or €320 to €1,450 EUR) for a condo worth 10 to 15 million pesos.
The realistic range of property taxes in Manila varies significantly depending on which city your condo sits in and how recently that city has updated its assessment levels, with some areas charging effective rates closer to 0.15% and others reaching 0.7% or more of market value.
Property taxes for apartments in Manila are calculated based on assessed value (not purchase price), with the assessed value typically set at a percentage of fair market value as determined by the local assessor, and then multiplied by the basic RPT rate set by your specific city or municipality.
There are some property tax exemptions available in the Philippines, including a socialized housing exemption for properties below certain value thresholds and senior citizen discounts, though most foreign investors with mid-range to premium condos will not qualify for these reductions; however, some cities like Makati have recently passed ordinances lowering their RPT rates, so checking your specific LGU's current rates is essential.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Manila.
How much does landlord insurance cost for an apartment in Manila in 2026?
As of early 2026, typical annual landlord insurance for an apartment in Manila costs around 0.05% to 0.15% of property value, which works out to roughly 5,000 to 25,000 pesos per year ($85 to $430 USD or €80 to €405 EUR) for most condos, depending on coverage level and whether you add typhoon, flood, and earthquake riders.
The realistic range of annual landlord insurance costs in Manila spans from about 4,000 pesos ($70 USD or €65 EUR) for basic fire and theft coverage on a modest unit up to 35,000+ pesos ($600+ USD or €565+ EUR) for comprehensive coverage with higher sum insured, contents protection, and full natural disaster riders on a premium property.
What's the typical property management fee for apartments in Manila as of 2026?
As of early 2026, the typical property management fee for apartments in Manila runs about 6% to 10% of monthly rent for long-term rental management, which works out to roughly 2,000 to 6,000 pesos per month ($35 to $105 USD or €32 to €97 EUR) on a typical mid-range unit renting for 35,000 pesos.
The realistic range of property management fees in Manila spans from around 5% for basic rent collection and tenant coordination up to 30% of revenue for full-service short-term rental management that includes cleaning coordination, guest communication, and listing optimization.
Standard property management fees in Manila typically include tenant sourcing and screening, rent collection and deposit handling, coordination of basic repairs with building maintenance, and lease renewal negotiations, while tenant placement fees (usually half to one month's rent) are often charged separately for finding new tenants.
We made this infographic to show you how property prices in the Philippines compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Manila, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
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 authoritative | How we used it |
|---|---|---|
| JLL Manila Residential Market Report | Major global real estate consultancy with consistent published metrics. | We used their rent per square meter and capital value data to compute baseline gross yields. We treated this as the core quantitative spine for prime Manila condos. |
| Colliers 2026 Philippine Property Outlook | Major global consultancy publishing forward-looking annual market analysis. | We used it to frame early 2026 market conditions including supply, demand, and vacancy direction. We ensured our rental speed and tenant demand statements matched the market narrative. |
| Bangko Sentral ng Pilipinas RPPI Report | Official Philippine central bank residential property price index. | We used it to anchor the direction of prices and how the broader market is moving. We also used it as a reality check so our yield estimates don't contradict the macro price trend. |
| BusinessWorld / Leechiu Commentary | Major national business newspaper with named analyst attribution. | We used it as a triangulation point for directionally flat yields into 2026. We treated it as confirmation of the broader market story rather than taking numbers in isolation. |
| AirDNA Manila Dashboard | Widely used short-term rental data provider with transparent metrics. | We used their occupancy, ADR, and revenue snapshot to estimate short-term rental gross income. We then compared that to long-term rent levels to estimate the yield gap. |
| DILG Local Government Code | Government-hosted copy of the law governing local taxes and permits. | We used it to ground that LGUs govern permits and local tax mechanics. We explained why landlords deal with city hall and barangay for both rentals and STR operations. |
| Makati City Official Portal | Official city announcement of their own RPT ordinance update. | We used it to show that property tax rates differ by city within Metro Manila. We cited it as a concrete example of why landlords must check their specific LGU. |
| Bureau of Internal Revenue Portal | Official BIR portal for withholding tax concepts and issuances. | We used it to ground that rental income can trigger withholding and reporting requirements. We framed tax compliance as part of realistic net yield calculations. |
| AXA Philippines Condo Insurance | Major insurer's official product page for condo coverage. | We used it to anchor what landlord insurance typically covers for a Manila condo unit. We built a realistic annual insurance budget range for net yield calculations. |
| Department of Tourism Accreditation Rules | Official DOT publication on accommodation establishment standards. | We used it to explain what formal accommodation compliance looks like for short-term letting. We grounded legality steps beyond just condo rules. |
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