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 are a foreigner thinking about buying a condo in Manila for rental income, you probably want to know what kind of returns you can realistically expect.
Manila's condo market in early 2026 is a buyer's market with elevated vacancy, meaning your yield will depend heavily on location, unit size, and whether you buy smart.
This blog post breaks down gross yields, net yields, actual rent levels, and the costs that can eat into your profits, all based on the freshest data we could find.
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 a condo in Manila?
What's the average gross rental yield for condos in Manila as of 2026?
As of early 2026, the average gross rental yield for condos in Manila sits around 5.5% to 5.8%, which is considered moderately attractive by regional standards.
However, the realistic range for gross yields in Manila condos spans from about 4% on the low end (typically larger units in prime towers) up to 8% or more for well-located smaller units in value neighborhoods.
The main factor causing this wide spread in Manila is the uneven vacancy situation across different submarkets, with areas like the Bay Area experiencing over 50% vacancy while Makati CBD and Rockwell sit below 15%, so even two condos at similar prices can have very different rental realities.
Compared to other Southeast Asian cities, Manila's gross yields are slightly better than Singapore (around 3%) and Hong Kong (around 2.5%) but comparable to Bangkok and Kuala Lumpur, which also hover in the 4% to 6% range.
What's the average net rental yield for condos in Manila as of 2026?
As of early 2026, the average net rental yield for condos in Manila typically lands between 2.5% and 4.5% after accounting for all the costs landlords actually pay.
The realistic range most Manila condo investors can expect is roughly 2% net (in oversupplied areas with high vacancy) up to about 5% net (for efficiently managed units in high-demand locations bought at reasonable prices).
The single biggest expense that reduces gross yield to net yield in Manila is vacancy drag, because with Metro Manila vacancy hovering around 25% to 26% and some submarkets like the Bay Area exceeding 50%, landlords can easily lose one to three months of rent per year just waiting for tenants.
By the way, we have much more granular data about rental yields in our property pack about Manila.
What's the typical rent-to-price ratio for condos in Manila in 2026?
As of early 2026, the typical rent-to-price ratio for condos in Manila is around 18x annual rent, meaning you pay roughly 18 years' worth of rent to buy a median-priced condo.
The realistic range spans from about 12x annual rent (higher-yield value pockets with smaller units) to 25x annual rent (premium buildings where prices stay elevated but rents face competition).
In Manila, the highest rent-to-price ratios (meaning better value for investors) tend to appear in parts of Manila City, Mandaluyong, and the Pasig-Ortigas fringe, where purchase prices are more accessible but tenant demand from local professionals remains solid.
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How much rent can I charge for a condo in Manila?
What's the typical tenant budget range for condos in Manila right now?
The typical monthly tenant budget for renting a condo in Manila in early 2026 ranges from about ₱25,000 to ₱80,000 ($425 to $1,350 / €360 to €1,140), depending on location and unit size.
For entry-level condos in Manila, tenants typically budget around ₱18,000 to ₱30,000 per month ($305 to $510 / €260 to €430), which gets you a basic studio or small one-bedroom in a non-prime area or an older building.
Mid-range condo renters in Manila generally spend between ₱35,000 and ₱70,000 per month ($590 to $1,190 / €500 to €1,000), which covers decent one-bedroom to two-bedroom units in good locations like Ortigas, parts of Makati, or newer Mandaluyong developments.
High-end and luxury condo tenants in Manila budget ₱80,000 to ₱200,000 or more per month ($1,350 to $3,400+ / €1,140 to €2,860+), targeting premium buildings in BGC, Rockwell Center, or the best Makati addresses.
You can also check our latest update about rents in Manila here.
What's the average monthly rent for a 1-bed condo in Manila as of 2026?
As of early 2026, the average monthly rent for a one-bedroom condo in Manila is approximately ₱38,000 to ₱48,000 ($645 to $815 / €545 to €685), depending heavily on which city within Metro Manila you look at.
Entry-level one-bedroom condos in Manila rent for around ₱20,000 to ₱30,000 per month ($340 to $510 / €285 to €430), which typically means an older building, a smaller unit around 20 to 25 square meters, or a location outside the core business districts like parts of Quezon City or Pasay.
A mid-range one-bedroom condo in Manila rents for about ₱35,000 to ₱55,000 per month ($590 to $930 / €500 to €785), usually a newer building around 30 to 40 square meters in areas like Ortigas, Mandaluyong, or the edges of Makati.
High-end one-bedroom condos in Manila command ₱60,000 to ₱100,000 or more per month ($1,015 to $1,695+ / €860 to €1,430+), representing fully furnished units in prime BGC towers, Rockwell, or top Makati buildings with premium amenities.
What's the average monthly rent for a 2-bed condo in Manila as of 2026?
As of early 2026, the average monthly rent for a two-bedroom condo in Manila is approximately ₱50,000 to ₱100,000 ($850 to $1,695 / €715 to €1,430), with a wide gap between Manila City and premium areas like Taguig.
Entry-level two-bedroom condos in Manila rent for around ₱35,000 to ₱50,000 per month ($590 to $850 / €500 to €715), often found in older developments, smaller layouts around 45 to 55 square meters, or secondary locations away from the major CBDs.
A mid-range two-bedroom condo in Manila costs about ₱55,000 to ₱90,000 per month ($930 to $1,525 / €785 to €1,285), which usually means a decent-sized unit of 60 to 80 square meters in well-maintained buildings in Ortigas, Makati fringe areas, or newer Pasig developments.
High-end two-bedroom condos in Manila command ₱100,000 to ₱180,000 or more per month ($1,695 to $3,050+ / €1,430 to €2,570+), typically in BGC's best addresses, Rockwell Center, or luxury Makati towers with full furnishing and parking included.
What's the average monthly rent for a 3-bed condo in Manila as of 2026?
As of early 2026, the average monthly rent for a three-bedroom condo in Manila is approximately ₱95,000 to ₱180,000 ($1,610 to $3,050 / €1,360 to €2,570), with prices skewing much higher in Taguig compared to Manila City.
Entry-level three-bedroom condos in Manila rent for around ₱70,000 to ₱100,000 per month ($1,185 to $1,695 / €1,000 to €1,430), typically in older buildings, less central locations, or units with simpler finishes around 80 to 100 square meters.
A mid-range three-bedroom condo in Manila costs about ₱100,000 to ₱150,000 per month ($1,695 to $2,540 / €1,430 to €2,140), usually covering well-located units of 100 to 130 square meters in established areas like Ortigas, Makati, or mid-tier BGC buildings.
High-end three-bedroom condos in Manila command ₱150,000 to ₱300,000 or more per month ($2,540 to $5,085+ / €2,140 to €4,285+), representing premium units in the best BGC towers, Rockwell, or top-tier Makati addresses, often with maid's room and multiple parking slots.
How fast do well-priced condos get rented in Manila?
A well-priced condo in a good Manila location typically gets rented within two to six weeks, though in oversupplied areas it can stretch to two to three months or longer even with competitive pricing.
The overall vacancy rate for condos in Manila in early 2026 hovers around 25% to 26% across Metro Manila, but this ranges from below 15% in resilient submarkets like Makati CBD and Rockwell to over 50% in the Bay Area.
The main factors that make some Manila condos rent faster include being near major employment centers (BGC offices, Makati CBD, Ortigas), having reliable building management with good security and backup power, and being in a building that actually allows tenants rather than being dominated by investor-owned vacant units.
And if you want to know what should be the right price, check our latest update on how much a condo 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 condo type gives the best yield in Manila?
Which is better for yield between studios, 1-bed, 2-bed and 3-bed condos in Manila as of 2026?
As of early 2026, studios and one-bedroom condos in Manila typically offer the best rental yields, averaging around 7% gross, compared to about 5% to 6% for two-bedrooms and under 5% for larger units.
The typical gross rental yield ranges by unit type in Manila are roughly: studios and one-bedrooms at 5.5% to 8%, two-bedrooms at 4.5% to 7%, three-bedrooms at 3.5% to 5%, and four-bedrooms or larger often below 4%.
The main reason smaller units outperform in Manila is that larger condos face price support from end-user family buyers (who pay a premium for space), while rents stay compressed because fewer tenants can afford ₱100,000+ monthly rents, especially with the current oversupply giving renters more bargaining power.
Which amenities are best if you want a good yield for your condo in Manila?
The amenities that most positively impact rental yield in Manila are reliable building management, 24/7 security, and backup power, because Metro Manila tenants (especially expats and BPO professionals) prioritize predictability and safety over flashy pools or gyms.
Mid-to-high floors tend to rent faster in Manila because they avoid street noise, have better natural light, face fewer pest issues, and still have manageable elevator wait times compared to the very top floors in tall buildings.
Condos with balconies do rent faster in Manila, especially for one-bedroom units where work-from-home tenants value the extra livability, though the rent premium is usually modest compared to the speed advantage.
Pools and gyms can help marketing, but in Manila they often come with higher HOA fees (₱80 to ₱200 per square meter monthly), so the net yield impact can be neutral or even negative if you overpay for a luxury building where rents are pressured by oversupply.
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Which neighborhoods give the best rental demand for condos in Manila?
Which condo neighborhoods have the highest rental demand in Manila as of 2026?
As of early 2026, the neighborhoods with the highest rental demand for condos in Manila are BGC (Fort Bonifacio), Makati CBD (especially Salcedo Village and Legazpi Village), Rockwell Center, and Ortigas Center.
The main demand driver in these Manila neighborhoods is the concentration of multinational offices, BPO companies, and international schools, which creates a steady pool of expat tenants and high-earning local professionals who need to live close to work.
Vacancy rates in these high-demand Manila neighborhoods sit below 15%, compared to the Metro Manila average of 25% to 26%, meaning well-priced units typically rent within two to four weeks rather than months.
One emerging neighborhood gaining rental demand momentum in Manila is Mandaluyong, particularly the areas near the future MRT-7 and Metro Manila Subway stations, where transit improvements are attracting tenants priced out of BGC and Makati.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Manila.
Which condo neighborhoods have the highest yields in Manila as of 2026?
As of early 2026, the neighborhoods with the highest rental yields for condos in Manila include parts of Manila City, Mandaluyong, and sections of Pasig near Ortigas, where purchase prices are more accessible relative to rents.
Gross rental yields in these higher-yielding Manila neighborhoods typically range from 6% to 8%, compared to 4% to 5.5% in premium areas like BGC and top-tier Makati where prices are elevated.
The main reason these neighborhoods offer higher yields is that property prices there fell faster than rents during the oversupply period, so investors buying now capture a better rent-to-price ratio, though you must underwrite vacancy carefully because some of these same areas also have above-average vacancy.
We have a whole part covering all the neighborhoods in our pack about buying a property in Manila.
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 condos in Manila as of 2026?
As of early 2026, short-term rental (Airbnb-style) is generally legal in Manila, but it is conditional on your building's rules, local business permits, and potentially Department of Tourism accreditation requirements.
The main legal restrictions for operating a short-term rental condo in Manila are that your condo corporation must allow transient guests in its bylaws, you may need a barangay clearance and business permit, and if you market as an "accommodation establishment" you may be expected to register with the Department of Tourism.
There is no official public list of which Manila condo buildings allow Airbnb, but based on market experience, the majority of buildings in BGC and Makati have restrictions or outright bans on short-term rentals, while some buildings in entertainment districts or tourist areas are more permissive.
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 gross yields roughly 1 to 3 percentage points higher than long-term rentals on paper, but the net yield gap is often much smaller or even inverted after STR-specific costs.
Long-term rental gross yields in Manila typically run 4% to 8%, while short-term rentals can show gross revenue yields of 6% to 10% based on AirDNA data showing around 45% occupancy and $40 average daily rates in Manila.
The main additional costs that reduce the net yield advantage of short-term rentals in Manila include platform fees (Airbnb takes about 3% to 5%), cleaning and turnover costs between guests, higher utility bills, more frequent repairs and furnishing replacement, and potentially a co-host or property manager fee of 15% to 25%.
To actually outperform a long-term rental in Manila, a short-term rental typically needs to achieve at least 55% to 65% occupancy consistently, which is challenging given the current oversupply and the fact that many buildings restrict or ban STR activity.
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What costs will destroy my net yield for a condo in Manila?
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Manila.
What are condo HOA fees as a % of rent in Manila as of 2026?
As of early 2026, typical HOA (condo association) fees in Manila run about 8% to 15% of monthly rent for mid-market units, translating to roughly ₱2,500 to ₱8,000 per month ($42 to $135 / €36 to €115) for a typical 30 to 40 square meter one-bedroom.
The realistic range of HOA fees in Manila spans from about 6% of rent (older buildings with basic amenities) up to 20% or more (luxury towers with extensive facilities), with the per-square-meter rate typically falling between ₱80 and ₱200 monthly.
In Manila, higher-than-average HOA fees are usually justified by 24/7 concierge services, multiple swimming pools, well-maintained fitness centers, reliable backup generators, and premium building management, though these same buildings often face rent competition that can neutralize the amenity advantage.
What annual maintenance budget should I assume for a condo in Manila right now?
A reasonable annual maintenance budget for a condo in Manila in early 2026 is about 0.5% to 1% of property value, which works out to roughly ₱30,000 to ₱60,000 ($510 to $1,015 / €430 to €860) for a ₱6 million unit.
The realistic range depends on condo age and condition: newer buildings may need only ₱15,000 to ₱30,000 ($255 to $510 / €215 to €430) annually, while older units or those with heavy tenant turnover can require ₱50,000 to ₱80,000 ($850 to $1,355 / €715 to €1,140) or more.
The most common maintenance expenses Manila condo owners face include air conditioning servicing and repair (critical in the tropical climate), repainting between tenants, appliance replacement (water heaters and kitchen equipment fail frequently), and occasional plumbing or electrical fixes due to building age or humidity damage.
What property taxes should I expect for a condo in Manila as of 2026?
As of early 2026, annual property tax (Real Property Tax plus Special Education Fund) for a condo in Manila typically amounts to about 0.5% to 1.5% of assessed value, which is usually well below market value, so the effective tax on market price is often under 1%.
The realistic range depends on your unit's assessed value and location: for a ₱6 million market-value condo with an assessed value of ₱2 million, expect roughly ₱40,000 to ₱60,000 ($680 to $1,015 / €570 to €860) per year in Metro Manila cities.
Property taxes in Manila are calculated by local government units (LGUs) based on the assessed value of your condo, which is determined by applying an assessment level (typically 20% for residential condos) to the fair market value, then applying the basic RPT rate (up to 2% in Metro Manila) plus 1% SEF.
Some Manila condo owners may qualify for tax reductions if the unit is owner-occupied (socialized housing exemptions apply to very low-value properties), and LGUs occasionally run amnesty programs for delinquent taxes, but there is no broad exemption for rental investors.
How much does condo insurance cost in Manila in 2026?
As of early 2026, typical annual condo insurance in Manila costs about ₱5,000 to ₱20,000 ($85 to $340 / €70 to €285) for basic coverage of contents, improvements, and liability.
The realistic range extends higher if you add comprehensive catastrophe perils: with typhoon, flood, and earthquake coverage, premiums can reach ₱25,000 to ₱40,000 ($425 to $680 / €360 to €570) or more annually, depending on your unit's value and location.
What's the typical property management fee for condos in Manila as of 2026?
As of early 2026, typical property management fees for condos in Manila run about 8% to 12% of monthly rent, which translates to roughly ₱3,000 to ₱8,000 per month ($51 to $135 / €43 to €115) for a unit renting at ₱40,000.
The realistic range spans from about 5% (basic tenant placement and rent collection only) up to 15% or more (full-service management with maintenance coordination, inspections, and tenant relations), with some managers charging flat monthly fees instead of percentages.
Standard property management services in Manila typically include tenant sourcing and screening, lease preparation, rent collection, coordination with building administration, handling minor repairs, and periodic unit inspections, though hands-on maintenance and major repairs are usually billed separately.
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 |
|---|---|---|
| Global Property Guide | Long-running international real estate data publisher with transparent yield methodology. | We used their Metro Manila city-by-city median asking rents and prices to estimate gross yields. We also used their methodology notes to cross-check our net yield assumptions. |
| Colliers Philippines | Top-tier global real estate consultancy publishing quarterly market reports with defined metrics. | We used their Q3 2025 Metro Manila vacancy rates and submarket comparisons to anchor realistic downtime assumptions. We used their Bay Area oversupply analysis to explain neighborhood-level yield differences. |
| BusinessWorld | Major Philippine business newspaper with direct attribution to analyst sources like Leechiu. | We used their coverage of Leechiu Property Consultants data to validate rental yield projections. We referenced their reporting on inventory levels and market outlook for 2026. |
| AirDNA | Well-known short-term rental data provider with market-level occupancy and ADR statistics. | We used their Manila market snapshot to estimate realistic STR gross revenue potential. We used it to compare STR versus LTR yields under consistent assumptions. |
| RA 7160 (Local Government Code) | Primary law publication setting the framework for real property tax in the Philippines. | We used it to anchor property tax mechanics and rate ceilings for Metro Manila. We used specific sections on RPT and SEF to quantify the tax drag on net yield. |
| AXA Philippines | Major regulated insurer with product explanations grounded in real coverage structures. | We used their condo insurance explainer to define what coverage typically includes. We used it as an anchor when estimating annual insurance cost ranges. |
| Wise | Widely used FX platform publishing transparent historical mid-market rate ranges. | We used it to pick a realistic early January 2026 conversion level for USD to PHP. We used it for arithmetic convenience in translating benchmarks to pesos. |
| Xe | Leading currency data provider with real-time and historical exchange rate tracking. | We used it to verify EUR to PHP conversion rates for early 2026. We used it to ensure consistent currency reporting throughout the article. |
| Airbnb Help Center | Airbnb's own guidance pointing hosts to relevant government registration portals. | We used it to support the claim that STR hosting may require registration steps. We used it to frame legality as conditional on compliance and building rules. |
| Dot Property Philippines | Leading local property portal with extensive rental and sale listing data. | We used it to validate rent ranges across different Manila neighborhoods. We used their median price and yield statistics as cross-references. |
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