Is Tagaytay property worth buying Philippines?

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Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in the Philippines. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Filipino real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Manila, Cebu, and Tagaytay. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

How much do properties in Tagaytay cost per square meter compared to Manila, Cebu, and other cities?

Tagaytay residential lot prices range from ₱14,000 to ₱15,500 per square meter for standard developments as of September 2025.

Luxury developments like Tagaytay Highlands command premium prices up to ₱40,000 per square meter for prime locations with lake views and exclusive amenities. Average condominium prices in Tagaytay center sit around ₱15,605 per square foot, which translates to approximately ₱168,000 per square meter.

Compared to Metro Manila, Tagaytay properties cost significantly less than prime Makati and BGC areas where prices reach ₱200,000 to ₱500,000+ per square meter. However, Tagaytay pricing aligns closely with midrange Manila districts that typically cost ₱120,000 to ₱250,000 per square meter.

When comparing to Cebu City, Tagaytay properties are notably more expensive than non-prime Cebu areas which range from ₱70,000 to ₱140,000 per square meter. This price differential reflects Tagaytay's positioning as a premium weekend destination for Manila residents.

It's something we develop in our Philippines property pack.

What are the average rental yields in Tagaytay for different property types?

Traditional long-term rental yields in Tagaytay are relatively modest at 1–1.3% gross yield for condominiums according to current market data.

Short-term rental properties deliver significantly higher returns, with well-managed Airbnb units achieving 6–10% annual yields when properly marketed and maintained. The average annual short-term rental revenue reaches approximately ₱321,000 (US$5,000) per property based on 2024-2025 performance data.

Airbnb properties in Tagaytay maintain an average occupancy rate of 31% throughout the year, with daily rates averaging ₱2,597. Top-performing properties can achieve occupancy rates exceeding 57% during peak seasons while commanding daily rates up to ₱8,600 for premium listings.

These short-term rental yields exceed the national Philippine average for similar property types, making Tagaytay particularly attractive for investors focused on vacation rental income. However, traditional long-term rentals underperform due to seasonal demand fluctuations and increasing supply from new developments.

How many new developments are under construction and what's their market impact?

Multiple large-scale mixed-use developments are currently under construction in Tagaytay, including La Bella, Alta Monte, Wind Residences, and expansions of Tagaytay Highlands.

Developer	Project Name	Development Type
Vista Land	Crosswinds Expansion	Residential & Commercial
Cityland	Multiple Projects	Mixed-Use Development
SM Group	Tagaytay Highlands Phase 2	Luxury Residential
Don Tim	Alta Monte	Mid-Market Residential
Various Developers	Wind Residences	Condominium Complex

These developments will significantly increase residential and commercial supply over the next 2-3 years, creating potential short-term oversupply conditions in the mid-market segment. The pipeline expansion is expected to moderate capital appreciation rates, particularly for properties in the ₱15,000-₱25,000 per square meter range.

The increased supply will likely benefit buyers with more options and competitive pricing, while existing property owners may experience slower appreciation rates until demand catches up with new inventory levels.

What are the historical property appreciation trends over the past 10-15 years?

Tagaytay has experienced substantial property value appreciation since 2010, with residential lot prices increasing from approximately ₱6,000–₱8,000 per square meter to current levels of ₱14,000–₱40,000 per square meter depending on location and development quality.

The most significant growth periods occurred during 2012-2016 when infrastructure improvements and increased tourism drove demand, followed by another strong appreciation cycle from 2021-2023 during the post-pandemic recovery phase. Property values in prime developments like Tagaytay Highlands have seen the strongest appreciation, often outpacing the broader market.

Price growth has decelerated since 2023 as new development launches have increased available inventory and market competition. The appreciation rate has normalized from double-digit annual increases to more modest single-digit growth patterns.

Historical data indicates that properties in established, well-managed developments have maintained stronger appreciation patterns compared to standalone lots or properties in newer, unproven subdivisions.

How stable is property demand during peak and off-seasons?

Tagaytay property demand shows significant seasonal variation, with peak periods occurring from December through March and during weekends throughout the year when Metro Manila residents seek cooler climate retreats.

Short-term rental properties experience the most dramatic seasonal fluctuations, with top-performing units maintaining 57%+ occupancy during peak months but potentially dropping below 20% during lean periods like the rainy season from June to September. December consistently shows the strongest performance while July typically represents the weakest demand period.

End-user demand from retirees, local families purchasing vacation homes, and OFW buyers remains more stable year-round compared to the rental investor segment. These buyer categories are less affected by seasonal tourism patterns and focus more on long-term lifestyle and investment considerations.

The rental market vulnerability to oversupply shocks is most pronounced during off-seasons when increased inventory meets reduced demand, creating downward pressure on both occupancy rates and daily rates for short-term rental operators.

What are the typical property taxes, association dues, and maintenance costs?

Annual property taxes in Tagaytay range from 1-1.5% of assessed property value, which is generally lower than comparable rates in Metro Manila municipalities.

1. **Condominium Association Dues**: ₱60-₱120 per square meter monthly2. **Subdivision Association Fees**: ₱800-₱2,000 monthly depending on amenities3. **Luxury Development Fees**: Premium communities like Tagaytay Highlands charge higher monthly dues4. **Maintenance Costs**: Generally 10-20% lower than Metro Manila equivalents5. **Utilities**: Similar to national averages with reliable power and water services

Maintenance costs are typically lower than Metro Manila due to reduced labor costs and less intensive wear from pollution and traffic. However, luxury developments with extensive amenities like golf courses, clubhouses, and landscaped common areas may have higher ongoing fees that can reach ₱3,000-₱5,000 monthly for premium units.

Property owners should budget approximately 15-20% of gross rental income for taxes, dues, and basic maintenance when calculating net investment returns.

How accessible is Tagaytay from Metro Manila and what infrastructure improvements are planned?

Current travel time from Metro Manila to Tagaytay ranges from 1.5 to 2.5 hours depending on traffic conditions and departure times, with weekend and holiday travel significantly longer due to heavy recreational traffic.

The most significant infrastructure improvement is the Cavite-Tagaytay-Batangas Expressway (CTBEx) project, scheduled for completion by 2026, which will substantially reduce travel times and improve accessibility for Manila residents. Additional road widening and improvement projects are ongoing to handle increased traffic volume.

Public transportation options remain limited outside of private vehicles, chartered vans, and occasional bus services. Most property owners and visitors rely on private cars or ride-sharing services for transportation to and from the area.

The improved accessibility from infrastructure projects is expected to increase demand for Tagaytay properties, particularly benefiting short-term rental operators and weekend home buyers who value convenient access from the capital region.

It's something we develop in our Philippines property pack.

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.

What natural hazard risks affect property values and insurance costs?

Taal Volcano presents the most significant natural hazard risk for Tagaytay properties, with ongoing eruption and ashfall potential affecting both property values and insurance premiums.

Property insurance costs in Tagaytay are typically 10-20% higher than non-volcanic areas when purchasing comprehensive coverage that includes volcanic activity protection. While volcanic events are insurable, premiums spike following major eruptions and supply chain interruptions can delay repairs and maintenance.

Earthquake and landslide risks exist but are generally manageable, with Tagaytay's elevated terrain providing structural stability for most developments. However, certain slope areas are prone to landslides during heavy rainfall seasons, particularly affecting properties built on steep inclines without proper drainage systems.

Property values and market liquidity typically experience temporary declines immediately following natural events but recover as tourism and local activity rebound. Well-constructed properties in established developments have shown resilience and faster value recovery compared to older or poorly-built structures.

What types of buyers are most active and how does this affect resale liquidity?

The most active buyer segments in Tagaytay include affluent Metro Manila families purchasing weekend homes, overseas Filipino workers (OFWs) investing in retirement properties, local retirees seeking cooler climate living, and domestic investors focused on rental income opportunities.

1. **Local Holiday Home Buyers**: Affluent Manila families (40% of market)2. **OFW Investors**: Overseas workers buying for future retirement (25% of market) 3. **Local Retirees**: Domestic retirees relocating permanently (20% of market)4. **Rental Investors**: Income-focused property buyers (10% of market)5. **Foreign Investors**: Limited by ownership restrictions (5% of market)

Foreign investment participation is constrained by Philippine property ownership laws that restrict land ownership to Filipino citizens, though foreigners can own condominium units in buildings where foreign ownership doesn't exceed 40% of total units.

Liquidity is strongest for residential lots and condominium units in established, branded developments with proven track records and quality amenities. Mid-segment properties face increasing competition from new supply, potentially extending time-on-market for resale properties.

High-end developments and well-located properties maintain the best resale prospects and value retention, while oversupplied market segments may require longer marketing periods and competitive pricing strategies.

How strong is the short-term rental market through platforms like Airbnb?

The Tagaytay short-term rental market shows robust activity with approximately 2,876 active Airbnb listings as of July 2025, indicating strong investor and operator participation.

Average daily rates (ADR) vary significantly by property quality and location, with median rates around ₱2,597 per night, premium properties achieving up to ₱8,600 nightly, and entry-level units starting near ₱1,800 per night. Seasonal variations can push peak-season rates 30-50% higher than off-season pricing.

Occupancy performance shows wide disparity based on property management quality and positioning, with top 10% of properties maintaining 57%+ annual occupancy, median properties achieving 19% occupancy, and poorly managed units falling to 9% occupancy rates.

The regulatory environment remains relatively lenient for short-term rentals, though some condominium associations have implemented internal restrictions or additional fees for Airbnb operations. Property investors should verify STR permissions before purchasing units specifically for rental income purposes.

What zoning regulations and restrictions apply in tourist and lake view areas?

Tagaytay enforces strict zoning regulations in tourist areas, lakefront properties, and conservation zones to protect the natural environment and maintain the city's appeal as a destination.

Building height restrictions are implemented near Taal Lake and in designated scenic areas to preserve view corridors and environmental integrity. New developments must comply with ecological management requirements and tourism master plan guidelines established by the local government unit.

Environmental buffer zones around Taal Lake limit development density and require special permits for construction activities. Properties within these zones may face restrictions on modifications, expansions, or commercial use that could affect long-term investment flexibility.

Commercial and mixed-use development nodes have been designated for business investments, but major projects must undergo comprehensive review processes to ensure compliance with environmental protection and tourism development objectives.

Investors should verify specific zoning classifications and development restrictions before purchasing properties, particularly those intended for commercial use or significant modifications.

Which developers have the strongest track records for long-term investment security?

The most reputable developers operating in Tagaytay include SM Group (Tagaytay Highlands), Brittany/Vista Land (Crosswinds), Cityland, Ayala Land, Megaworld, and Suntrust Properties, each with established track records and quality development standards.

Developer	Notable Projects	Investment Security Level
SM Group	Tagaytay Highlands	Highest - Premium positioning
Vista Land/Brittany	Crosswinds	High - Proven track record
Ayala Land	Various developments	High - National reputation
Cityland	Multiple projects	Moderate-High - Regional focus
Megaworld	Mixed-use developments	High - Established brand

Properties in developments by these established developers typically maintain stronger appreciation rates, better liquidity during resale, and more reliable property management services compared to smaller or newer developers without proven track records.

Developer reputation directly influences property values, with branded developments commanding premium pricing and maintaining value better during market downturns. Investors should prioritize properties from developers with strong financial backing, quality construction standards, and comprehensive after-sales support services.

It's something we develop in our Philippines property pack.

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.

Sources

1. OnePropertee - Tagaytay Lot Sales
2. Numbeo - Property Investment Tagaytay
3. RichestPH - Tagaytay Highlands Analysis
4. OnePropertee - Overlooking Tagaytay Properties
5. BambooRoutes - Average Rent CALABARZON
6. DMCI Homes - Best Cities for Condo Investment
7. Airbtics - Airbnb Revenue Tagaytay
8. AirROI - Tagaytay Market Report
9. Airbtics - Airbnb Rules Tagaytay
10. BambooRoutes - Rental Yields CALABARZON