Makati CBD Real Estate 2026: Recovery Signals and What They Mean for Buyers

After several years of softness, the Makati CBD market is showing the first concrete signs of recovery in Savills Philippines' 1Q 2026 Metro Manila Office Briefing. Office vacancy improved from 22.3% to 21.3%. Net take-up was a positive 16,400 sqm, concentrated along Ayala Avenue. And — most significantly — average asking rents rose 1.2% quarter-on-quarter to ₱984.2 per sqm, what Savills calls "a price floor stabilization after years of downward pressure."

This isn't a dramatic turnaround. Makati CBD is not the BGC story, where vacancy is already in single digits. But for the first time in a long time, the leading indicators are pointing the right way. For condo buyers, that's meaningful — Makati's residential market tends to lag the office market, which means today's pricing may not last.

This guide walks through the latest Savills data, what's actually driving the recovery, and how condo buyers and investors should think about Makati right now.

The 1Q 2026 Numbers: Makati CBD (Savills)

According to Savills' 1Q 2026 Metro Manila Office Briefing:

• Office stock: 1,680,000 sqm

• Vacancy rate (4Q 2025): 22.3%

• Vacancy rate (1Q 2026): 21.3% (improving)

• Net take-up (1Q 2026): +16,400 sqm — concentrated along Ayala Avenue

• Typical deal size: 1,000–2,000 sqm (1–2 floors per lease)

• Average asking rent: ₱984.2 / sqm / month (up from ₱972.5 in Q4 2025 — +1.2% QoQ)

• Upper rental rate: ₱1,700 / sqm / month

• Upcoming office supply (2026–2030): 76,000 sqm — relatively constrained

In Savills' own words: "The upward movement in asking rates, coupled with the positive net take-up, confirms that landlords are regaining leverage as high-quality office stock in the district begins to dwindle."

On the residential side, the Savills Panorama 2026 report identifies Makati CBD as the pricing leader for Metro Manila condominiums — a position it has held even through the broader softness.

What's Actually Driving the Recovery

Savills attributes Makati's 1Q 2026 performance to a few specific dynamics:

1. Decentralized, mid-sized deals are filling existing space

Typical deal sizes of 1,000–2,000 sqm — one to two floors per lease — signal a market shift away from massive single-tenant headquarters toward more distributed corporate occupancy. Makati is winning these because of its established corporate infrastructure and prestige address. Multiple transactions across multiple buildings, rather than one or two large leases, is the signature of organic recovery rather than a one-off.

2. Flight to quality favors Makati's Grade A stock

Savills' 1Q 2026 data shows that GREEN-certified buildings recorded +12,800 sqm of net take-up citywide — concentrated in Makati CBD and BGC. Premium, ESG-compliant Makati inventory continues to attract top-tier occupiers. This same dynamic underpins residential demand in Makati's prime addresses.

3. Constrained new supply

Only 76,000 sqm of new office supply is expected through 2030 — significantly less than Quezon City (181,800 sqm) or the Bay Area (180,000 sqm). With the existing high-quality stock dwindling, asking rates have room to rise without losing tenants to competitor districts.

What This Means for Condo Buyers

Time horizon matters

Office strength tends to lead residential strength in a CBD by 12–18 months. If Savills' 1Q 2026 office recovery holds (vacancy continuing to drop, rents continuing to firm), Makati CBD residential prices and rents should follow. Buyers who close in 2026 may see real appreciation by 2027–2028.

The Salcedo / Legazpi / Rockwell premium is real

These submarkets within Makati combine:

• Walkability to top-tier offices (the same Grade A buildings now leasing up per Savills)

• Mature retail and dining

• High-quality, well-managed buildings

• Gross rental yields of ~4.5–6%, net ~3–4.5% (above BGC's 3–4% gross)

That's a strong combination of yield and appreciation runway.

Older buildings may underperform newer ones

Even within Makati CBD, the flight to quality is real. Older buildings with weak HOAs or aging amenities can lag the market. Newer, well-managed, and sustainability-certified buildings are the better play — the same logic that's filling Grade A office space.

Makati vs. BGC for Condo Buyers in 2026

Both are prime CBDs. How do you choose? Here's how the latest Savills 1Q 2026 data lines them up:

The honest read: BGC is further along in its recovery and has the lower vacancy. Makati is earlier in its recovery — which means it may offer better entry pricing for buyers who can underwrite the next 12–24 months. The combination of slightly higher Makati rental yields plus rising office rents is the case for the Makati play in 2026.

Who Should Buy in Makati CBD Right Now

• Yield-conscious investors who also want capital defense.

• Owner-occupiers working in Makati or in the broader business/finance industry.

• OFW investors who want a recognizable, liquid resale market.

• Long-term holders who can ride the projected 2026–2028 office-to-residential recovery.

Less ideal fit:

• Buyers chasing high gross yields; those usually live in Quezon City.

• Buyers on tight budgets under ~₱5M; Makati CBD has limited inventory at that price point.

• Buyers who need brand-new construction; Makati's pipeline is thin compared to QC or Bay Area.

A Reality Check on Recovery Speed

It's important to be honest about the data. Savills' 1Q 2026 read on Makati CBD is early recovery, not full recovery:

• Vacancy is still 21.3% — far above BGC's 8.0%.

• The 1.2% QoQ rental increase is modest.

• Citywide vacancy continues to "hover around current levels" through 2026 per Savills' base case.

The signal is real, but it's an opening signal, not a confirmation. Buyers should treat 2026 as the window to enter, not the window where the recovery is already priced in.

Practical Buyer's Checklist

Before pulling the trigger on a Makati CBD condo in 2026, run through this:

• Confirm the building's actual current vacancy and tenant profile.

• Verify ongoing major repairs or special assessments.

• Check Real Property Tax (amilyar) is current.

• Compare rental comps for the same unit type in the building over the last 6–12 months.

• Stress-test net yield with realistic dues, vacancy, and tax.

• Review developer/HOA financials for older buildings.

• Confirm clean title (CCT) and absence of liens.

• Consider proximity to key Makati office clusters (Ayala Avenue, Salcedo, Legazpi, BPI Buendia corridor — where Savills' 1Q 2026 transactions concentrated).

Risks That Could Stall the Recovery

The Makati thesis is real but not bulletproof. Watch for:

• BSP rate path. If rates stay elevated longer than expected, buyer demand and developer activity could lag.

• IT-BPM trajectory. Savills notes IT-BPM is now in "optimization, not expansion" mode. A sudden contraction would pressure all CBDs.

• Pipeline acceleration. If delayed Makati or Quezon City completions land all at once later in 2026, they could pressure rents downward.

• Aging stock issues. Some 1980s–2000s Makati buildings face redevelopment or major capex pressures.

Even with those risks, Makati CBD's combination of tightening (if still high) office vacancy, rising rents, and constrained new supply makes it one of the stronger Metro Manila plays in 2026 — particularly for buyers who can take a 2–3 year view.

The Bottom Line

The Savills 1Q 2026 data is clear: Makati CBD is no longer deteriorating — it's beginning to firm. Vacancy is improving (22.3% → 21.3%), net take-up is positive (+16,400 sqm along Ayala Avenue), and rents are rising for the first time in years (+1.2% QoQ to ₱984.2). It's early-stage recovery, not full recovery — which is exactly the window where buyers can still enter at favorable prices.

If you're going to buy in Makati, the 2026 window is interesting — particularly in Salcedo, Legazpi, Rockwell, and similar pockets where the office anchor is strongest.

Find Your Makati CBD Condo on Listd.ph

Ready to take advantage of the recovery? Browse current Makati CBD listings on Listd.ph. Filter by location, building, and price per square meter — and let our AI-powered platform surface the units that match your investment or relocation strategy.

Primary source: Savills Philippines — 1Q 2026 Metro Manila Office Briefing (April 2026) and Savills Panorama 2026 (February 2026). All vacancy, net take-up, and rental rate figures above are from these reports. Supplementary context from BusinessWorld and Manila Bulletin.