Authored by the expert who managed and guided the team behind the Philippines Property Pack
Everything you need to know before buying real estate is included in our The Philippines Property Pack
This article breaks down what renters and landlords in the Philippines can realistically expect to pay or earn in 2026.
We cover everything from studio and 1-bedroom rents to vacancy rates, tenant preferences, and monthly costs like taxes and utilities.
We constantly update this blog post to reflect the latest data and market conditions.
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 the Philippines.
Insights
- Metro Manila condo vacancy in 2026 sits at roughly 24% to 26% overall, but the Bay Area alone has vacancy above 50%, which means landlords there face much tougher competition for tenants.
- Prime neighborhoods like Makati CBD and Rockwell Center in the Philippines maintain vacancy rates below 15%, allowing landlords in those areas to command rents 40% to 60% higher than the Metro Manila average.
- Colliers expects only about 3,600 new condo units per year from 2026 to 2028 in Metro Manila, a sharp drop from pre-pandemic peaks, which should help vacancy rates gradually ease.
- The average rent per square meter in the Philippines in 2026 ranges from around ₱250 in provincial cities to over ₱900 in prime Makati and Taguig, a gap of more than 3x.
- Furnished units in Metro Manila CBDs typically rent 15% to 25% higher than unfurnished ones, and they also tend to lease faster because expats and young professionals prefer move-in-ready apartments.
- Peak rental demand in the Philippines happens from January to February (job moves and expat rotations) and again from May to August (school-related relocations near university belts).
- Properties within walking distance of MRT stations or major universities like Ateneo, DLSU, or UST in the Philippines can command a 10% to 20% rent premium and lease in under 30 days.
- Meralco's residential electricity rate in late 2025 was about ₱13.11 per kWh, which translates to monthly bills of ₱2,000 to ₱5,000 for typical condo dwellers in Metro Manila.
- Real property tax in the Philippines can reach up to 3% of assessed value (not market value), so a ₱6 million condo might only owe around ₱36,000 per year in taxes.
- Small landlords in the Philippines earning rental income may qualify for the 8% flat income tax option, which simplifies tax filing and can reduce the overall tax burden compared to graduated rates.
What are typical rents in the Philippines as of 2026?
What's the average monthly rent for a studio in the Philippines as of 2026?
As of January 2026, the average monthly rent for a studio apartment in the Philippines falls between ₱14,000 and ₱18,000 (around $245 to $315 USD or €230 to €295 EUR), though this figure is weighted toward Metro Manila where most rental listings are concentrated.
The realistic range for studio rents in the Philippines stretches from about ₱8,000 ($140 USD / €130 EUR) in budget cities and outer districts to ₱40,000 or more ($700 USD / €655 EUR) in prime areas like Makati CBD or BGC.
The main factors that cause studio rents to vary within the Philippines include location (CBDs vs. provincial areas), building quality and age, proximity to transit or business districts, and whether the unit is furnished or unfurnished.
What's the average monthly rent for a 1-bedroom in the Philippines as of 2026?
As of January 2026, the average monthly rent for a 1-bedroom apartment in the Philippines is approximately ₱20,000 to ₱28,000 (around $350 to $490 USD or €330 to €460 EUR).
The realistic range for 1-bedroom rents in the Philippines goes from about ₱12,000 ($210 USD / €195 EUR) in budget areas to ₱80,000 or more ($1,400 USD / €1,310 EUR) in prime Makati, BGC, or Rockwell.
Neighborhoods like Tondo, Novaliches, and outer Quezon City tend to have the cheapest 1-bedroom rents in the Philippines, while Makati CBD, BGC in Taguig, and Rockwell Center command the highest.
What's the average monthly rent for a 2-bedroom in the Philippines as of 2026?
As of January 2026, the average monthly rent for a 2-bedroom apartment in the Philippines ranges from ₱32,000 to ₱45,000 (approximately $560 to $790 USD or €525 to €740 EUR).
The realistic range for 2-bedroom rents in the Philippines spans from about ₱18,000 ($315 USD / €295 EUR) in budget cities to ₱160,000 or more ($2,800 USD / €2,620 EUR) for larger or furnished units in prime Metro Manila locations.
Outer districts in Cavite, Laguna, and Bulacan tend to offer the cheapest 2-bedroom rents, while Rockwell Center, Forbes Park, and BGC in the Philippines remain the most expensive.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in the Philippines.
What's the average rent per square meter in the Philippines as of 2026?
As of January 2026, the average rent per square meter in the Philippines is approximately ₱450 to ₱650 (around $8 to $11 USD or €7 to €11 EUR), blending cities and segments nationwide.
The realistic range for rent per square meter in the Philippines goes from about ₱250 ($4.40 USD / €4.10 EUR) in provincial cities to over ₱900 ($16 USD / €15 EUR) in prime Makati and Taguig.
Compared to other major cities in Southeast Asia, the Philippines sits in the mid-range, with prime Manila rents higher than Bangkok or Jakarta but lower than Singapore or Hong Kong.
Properties in the Philippines that push rent per square meter above average typically feature premium building management, reliable backup power, fiber internet readiness, and proximity to business districts or international schools.
How much have rents changed year-over-year in the Philippines in 2026?
As of January 2026, the estimated year-over-year rent change in the Philippines is roughly 0% to +3% nationwide, with Metro Manila averaging about -1% to +2% and prime areas like Makati CBD and BGC seeing +2% to +6%.
The main factors driving rent changes in the Philippines in 2026 include elevated vacancy in oversupplied pockets like the Bay Area, stabilizing supply as fewer new condos complete, and continued demand from BPO workers and returning expats.
This year's rent change in the Philippines is slightly more positive than 2025, when Colliers projected a roughly 1.2% rent correction due to high vacancy and unsold ready-for-occupancy units.
What's the outlook for rent growth in the Philippines in 2026?
As of January 2026, the projected rent growth in the Philippines is expected to be modest at +1% to +4% for most markets, with prime, well-managed, furnished units potentially achieving +4% to +8%.
The key economic and demographic factors likely to influence rent growth in the Philippines include slowing supply (only about 3,600 new condo units per year from 2026 to 2028), steady BPO employment, and the Bangko Sentral ng Pilipinas inflation-targeting framework that keeps extreme price surges unlikely.
Neighborhoods in the Philippines expected to see the strongest rent growth include Makati CBD, Rockwell Center, BGC, and resilient pockets of Ortigas Center where vacancy remains below 15%.
Risks that could cause rent growth in the Philippines to differ from projections include a sudden economic downturn, unexpected supply surges in specific corridors, or changes in expat and BPO demand patterns.
We have made this infographic to give you a quick and clear snapshot of the property market in the Philippines. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods rent best in the Philippines as of 2026?
Which neighborhoods have the highest rents in the Philippines as of 2026?
As of January 2026, the top three neighborhoods with the highest average rents in the Philippines are BGC in Taguig (₱800 to ₱1,000+ per sqm / $14 to $18 USD / €13 to €16 EUR), Makati CBD around Ayala Center (₱750 to ₱950 per sqm / $13 to $17 USD / €12 to €16 EUR), and Rockwell Center in Makati (₱800 to ₱1,000 per sqm / $14 to $18 USD / €13 to €16 EUR).
These neighborhoods command premium rents in the Philippines because they combine walkability, corporate density, high security, lifestyle retail, and well-maintained building management.
The tenant profile that typically rents in these high-rent neighborhoods in the Philippines includes expats, multinational executives, senior BPO managers, and high-income local professionals who prioritize convenience and quality of life.
By the way, we've written a blog article detailing what are the current best areas to invest in property in the Philippines.
Where do young professionals prefer to rent in the Philippines right now?
The top three neighborhoods where young professionals prefer to rent in the Philippines are BGC in Taguig (modern towers and nightlife), Poblacion in Makati (vibrant dining and nightlife scene), and Kapitolyo in Pasig (trendy food and café culture).
Young professionals in the Philippines typically pay between ₱18,000 and ₱35,000 per month ($315 to $615 USD or €295 to €575 EUR) for studios or 1-bedroom units in these neighborhoods.
The specific amenities and lifestyle features that attract young professionals to these neighborhoods in the Philippines include walkable streets, coworking spaces, fitness gyms, rooftop bars, and easy access to offices in major business districts.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in the Philippines.
Where do families prefer to rent in the Philippines right now?
The top three neighborhoods where families prefer to rent in the Philippines are Alabang in Muntinlupa (quiet villages and international schools), Greenhills in San Juan (established residential feel with city access), and Capitol Commons in Pasig (newer condos with family-friendly amenities).
Families in the Philippines typically pay between ₱40,000 and ₱90,000 per month ($700 to $1,580 USD or €655 to €1,475 EUR) for 2 to 3-bedroom apartments in these neighborhoods.
The specific features that make these neighborhoods attractive to families in the Philippines include larger unit sizes, green spaces, lower traffic density, proximity to reputable schools, and a safer, quieter environment compared to dense CBDs.
Top-rated schools near these family-friendly neighborhoods in the Philippines include Brent International School Manila near Alabang, Xavier School near Greenhills, and Beacon Academy accessible from Capitol Commons.
Which areas near transit or universities rent faster in the Philippines in 2026?
As of January 2026, the top three areas near transit hubs or universities that rent fastest in the Philippines are Katipunan Avenue (near Ateneo and Miriam College), the Taft Avenue corridor (near DLSU and CSB), and Cubao/Araneta City (major MRT interchange and jobs hub).
Properties in these high-demand areas in the Philippines typically stay listed for only 20 to 35 days, compared to 45 to 60 days in less accessible locations.
The typical rent premium for properties within walking distance of transit or universities in the Philippines is about 10% to 20% higher (₱2,000 to ₱5,000 more per month / $35 to $90 USD / €33 to €82 EUR) compared to similar units farther away.
Which neighborhoods are most popular with expats in the Philippines right now?
The top three neighborhoods most popular with expats in the Philippines are BGC in Taguig, Makati CBD (especially Legazpi and Salcedo Villages), and Rockwell Center in Makati.
Expats in the Philippines typically pay between ₱50,000 and ₱120,000 per month ($875 to $2,100 USD or €820 to €1,970 EUR) for 1 to 2-bedroom furnished apartments in these neighborhoods.
The specific features that make these neighborhoods attractive to expats in the Philippines include proximity to multinational offices, international schools, English-speaking communities, high-quality building management, and reliable utilities.
The nationalities and expat communities most represented in these neighborhoods in the Philippines include Americans, Koreans, Japanese, Indians, and Europeans working in BPO, finance, and multinational corporations.
And if you are also an expat, you may want to read our exhaustive guide for expats in the Philippines.
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Who rents, and what do tenants want in the Philippines right now?
What tenant profiles dominate rentals in the Philippines?
The top three tenant profiles that dominate the rental market in the Philippines are local professionals (corporate, BPO, and healthcare workers), young couples and small households, and students living near university belts.
Local professionals represent roughly 45% to 50% of the rental market in the Philippines, young couples and small households account for about 25% to 30%, and students make up around 15% to 20%.
Local professionals in the Philippines typically seek 1 to 2-bedroom condos near CBDs, young couples prefer studios or 1-bedrooms with lifestyle amenities, and students usually rent bedspaces or studio units near their schools.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in the Philippines.
Do tenants prefer furnished or unfurnished in the Philippines?
In the Philippines, approximately 55% to 60% of tenants in Metro Manila CBDs prefer furnished rentals, while unfurnished or semi-furnished units dominate in family-oriented suburbs and provincial areas (about 60% to 65% preference).
The typical rent premium for furnished apartments in the Philippines is about ₱5,000 to ₱10,000 per month ($90 to $175 USD or €82 to €165 EUR) higher than unfurnished units of similar size and location.
The tenant profiles that tend to prefer furnished rentals in the Philippines include expats, young professionals relocating for work, and short-term renters who value convenience and move-in readiness.
Which amenities increase rent the most in the Philippines?
The top five amenities that increase rent the most in the Philippines are reliable backup power, fiber internet readiness, high-quality security and lobby management, dedicated parking, and well-maintained gym and pool facilities.
In the Philippines, backup power can add ₱2,000 to ₱4,000 per month ($35 to $70 USD / €33 to €65 EUR), fiber internet readiness adds about ₱1,000 to ₱2,000 ($18 to $35 USD / €16 to €33 EUR), quality security adds ₱1,500 to ₱3,000 ($26 to $53 USD / €25 to €49 EUR), parking adds ₱3,000 to ₱6,000 ($53 to $105 USD / €49 to €98 EUR), and gym/pool access adds ₱1,500 to ₱3,000 ($26 to $53 USD / €25 to €49 EUR).
In our property pack covering the real estate market in the Philippines, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in the Philippines?
The top five renovations that get the best ROI for rental properties in the Philippines are aircon upgrades with insulation fixes, kitchen refreshes (countertops and fixtures), bathroom upgrades (water heater and shower pressure), fresh paint with modern lighting, and waterproofing or mold prevention treatments.
In the Philippines, aircon upgrades typically cost ₱15,000 to ₱40,000 ($265 to $700 USD / €245 to €655 EUR) and can increase rent by ₱2,000 to ₱4,000 per month, kitchen refreshes cost ₱30,000 to ₱80,000 ($525 to $1,400 USD / €490 to €1,310 EUR) and add ₱2,000 to ₱5,000 to rent, and bathroom upgrades cost ₱20,000 to ₱50,000 ($350 to $875 USD / €330 to €820 EUR) and add ₱1,500 to ₱3,000 per month.
Renovations that tend to have poor ROI and should be avoided by landlords in the Philippines include overly customized or luxury finishes that exceed the neighborhood standard, structural changes that require permits and long timelines, and trendy design elements that may not appeal to mainstream tenants.
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.
How strong is rental demand in the Philippines as of 2026?
What's the vacancy rate for rentals in the Philippines as of 2026?
As of January 2026, the estimated vacancy rate for rental condos in Metro Manila is approximately 24% to 26%, though this average masks significant variation across neighborhoods.
The realistic range of vacancy rates across different neighborhoods in the Philippines goes from over 50% in oversupplied areas like the Bay Area to below 15% in resilient submarkets like Makati CBD, Rockwell Center, and parts of Ortigas Center.
The current vacancy rate in Metro Manila is still elevated compared to the historical average of around 10% to 15%, largely due to the post-pandemic supply surge that outpaced absorption.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in the Philippines.
How many days do rentals stay listed in the Philippines as of 2026?
As of January 2026, the estimated average number of days rentals stay listed in the Philippines is approximately 35 to 50 days, though this varies widely by location and pricing.
The realistic range of days on market across different property types and neighborhoods in the Philippines spans from about 20 to 35 days for correctly priced units in prime areas like Makati and BGC, to 60 to 120+ days in oversupplied zones or for overpriced listings.
The current days-on-market figure in the Philippines is roughly similar to one year ago, as the market remains in a stabilization phase following the 2024-2025 supply surge.
Which months have peak tenant demand in the Philippines?
The estimated peak months for tenant demand in the Philippines are January to February (job moves and expat rotations) and May to August (school-related relocations, especially near university belts like Taft, Katipunan, and España).
The specific factors that drive seasonal demand patterns in the Philippines include corporate hiring cycles that start in Q1, the academic calendar that runs from June to March for most schools, and expat assignment rotations that typically align with the calendar year.
The months with the lowest tenant demand in the Philippines are typically March to April (between hiring cycles) and September to November (mid-school year with fewer relocations), though October to November sees a smaller bump from pre-holiday moves.
Buying real estate in the Philippines can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What will my monthly costs be in the Philippines as of 2026?
What property taxes should landlords expect in the Philippines as of 2026?
As of January 2026, the typical annual property tax amount landlords should expect in the Philippines is around ₱20,000 to ₱50,000 ($350 to $875 USD or €330 to €820 EUR) for a mid-range condo valued at ₱4 million to ₱8 million.
The realistic range of annual property taxes in the Philippines depends on property value and location, spanning from about ₱10,000 ($175 USD / €165 EUR) for smaller provincial properties to ₱100,000+ ($1,750 USD / €1,640 EUR) for high-value Metro Manila condos.
Property taxes in the Philippines are calculated based on assessed value (not market value), with the basic Real Property Tax rate capped at 2% for cities and Metro Manila, plus a Special Education Fund levy that brings the effective rate to around 3% of assessed value.
Please note that, in our property pack covering the real estate market in the Philippines, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What utilities do landlords often pay in the Philippines right now?
The estimated utilities landlords most commonly pay on behalf of tenants in the Philippines include association dues (for condos), building maintenance charges, and sometimes basic garbage or administrative fees.
The typical monthly cost for landlord-paid utilities in the Philippines is about ₱3,000 to ₱8,000 ($53 to $140 USD or €49 to €130 EUR) for association dues and ₱500 to ₱1,500 ($9 to $26 USD or €8 to €25 EUR) for miscellaneous building fees, depending on the condo development.
The common practice in the Philippines is for tenants to pay electricity, water, and internet separately, while landlords cover association dues and building charges, though furnished short-term rentals sometimes bundle water or a capped electricity allowance.
How is rental income taxed in the Philippines as of 2026?
As of January 2026, rental income in the Philippines is subject to income tax under either graduated rates (ranging from 0% to 35% depending on total taxable income) or the 8% flat rate option for eligible self-employed individuals and small lessors earning below ₱3 million annually.
The main deductions landlords can claim against rental income in the Philippines include depreciation, property repairs and maintenance, association dues, property taxes, mortgage interest, and other ordinary and necessary expenses directly related to the rental activity.
A common tax mistake landlords in the Philippines should avoid is failing to register their rental activity with the BIR, which can trigger penalties, or misunderstanding the VAT exemption thresholds, as residential leases below ₱15,000 per month per unit are typically VAT-exempt but still require proper documentation.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in the Philippines.
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 the Philippines, 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 |
|---|---|---|
| Colliers Philippines Q3 2025 | Colliers is a global real estate research house, and this is a named, dated market report with clear metrics on Metro Manila residential. | We used it for the most concrete supply-and-demand numbers, including vacancy rates by submarket. We also used its 2025 rent correction call to anchor our 2026 rent-growth outlook. |
| JLL Philippines | JLL is a top-tier global consultancy whose research is widely used by investors and lenders. | We used it to anchor prime condominium rent levels (per sqm) in Makati and Taguig. We also cross-checked vacancy and recent rent growth in the higher-end segment. |
| Bangko Sentral ng Pilipinas | BSP is the Philippines' central bank and sets the inflation framework that affects mortgage and rent dynamics. | We used it to frame why rent growth in 2026 is likely to be moderate rather than runaway. We also used it as a reality check when forecasting rent growth for typical household budgets. |
| Philippine Statistics Authority | PSA is the national statistics office, and CPI is the standard official inflation benchmark. | We used it as the official reference point for how housing costs are tracked nationally. We used that framing to keep our rent-change estimates consistent with the broader price environment. |
| Meralco | Meralco is the largest power distributor in Metro Manila and publishes tariff updates directly. | We used it to estimate a realistic electricity bill line item for typical renters and landlords in Metro Manila. We then converted the published per-kWh rate into monthly peso ranges for common consumption levels. |
| Manila Water | Manila Water publishes official tariff tables for the East Zone, and these are meant to be auditable. | We used it to ground water-cost expectations with a real tariff document rather than guesses. We then translated it into typical monthly bill ranges for small households. |
| ABS-CBN News | It's a major national newsroom, and it cites MWSS regulatory actions and figures. | We used it to cross-check that the tariff environment is actually changing and by how much, which matters for all-in monthly costs. We used it as a second-source verification alongside the tariff table. |
| Republic Act 7160 (Local Government Code) | This is the governing law for real property tax and sets the legal ceiling for local rates. | We used it to explain property tax in plain English, including basic tax plus SEF and the maximum rates. We then built a practical peso-per-year estimate using typical condo assessment mechanics. |
| BIR Revenue Regulations No. 13-2018 | It's an official BIR issuance that spells out how VAT applies to residential leasing scenarios. | We used it to explain when residential rent is VAT-exempt versus when it may trigger VAT or other taxes. We then converted it into a simple decision tree for small landlords. |
| BIR RMO No. 23-2018 | It's an official BIR document describing the 8% income tax option's administration. | We used it to explain the 8% option versus graduated rates at a high level for small lessors who register as self-employed. We then linked that back to what landlords should budget monthly for taxes. |
| BIR Revenue Regulations No. 8-2018 | This is BIR's implementing guidance for post-TRAIN individual income tax rules. | We used it to frame the income tax side of rental income in a way that matches BIR's own implementing language. We then simplified the practical implications for a landlord earning rent as personal income. |
| BIR Tax Code Portal | It's BIR's official hub pointing taxpayers to the governing tax law references. | We used it as the official source-of-truth pointer for readers who want to verify the tax rules themselves. We also used it to keep our tax explanations aligned with BIR's own framing. |
| Inquirer Business | It's a major national newspaper, and this piece explicitly attributes its claims to Colliers research. | We used it as a cross-check that the 2026 direction (vacancy easing) is consistent with Colliers' own published narrative. We then reflected that in our 2026 rent-growth outlook. |
| Department of Finance | DOF is a core economic agency, and its releases typically cite PSA's official inflation prints. | We used it to cross-check the latest inflation context going into 2026, which is the background climate for rent negotiations. We then translated that macro context into a simple view of what this means for tenants and landlords. |
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