A Landlord's Guide: Is Renting Out a Manila Real Estate Property Profitable in 2025? Here Are 7 Key Insights
- bedandgoinc
- 1 日前
- 読了時間: 3分
May 14, 2025
As 2025 unfolds, many property owners and potential investors are asking: Is it still profitable to rent out property in Manila? With the ongoing urban expansion, increasing rental demand, and evolving tenant preferences, Manila's rental market continues to offer strong potential — but only to those who understand how to navigate it. This guide breaks down 7 essential factors every landlord should consider to maximize rental income and long - term returns in the current climate.
1. High Demand from Expats and Remote Workers
Manila remains a hub for international businesses, BPOs, and digital nomads, especially in areas like BGC, Makati, and Ortigas. The hybrid work trend fuels the need for centrally located, fully furnished units. Properties near commercial hubs with fast internet and amenities are consistently in demand. Landlords catering to this market segment can command higher monthly rates and enjoy steady occupancy.
2. Rising Rental Rates in Prime Areas
Rental prices in top - tier locations like Rockwell, Salcedo Village, and BGC have steadily increased in 2025 due to limited supply and growing demand. A studio in Makati CBD, once rented for ₱25,000, now easily fetches ₱28,000–₱40,000. This price appreciation is driving higher returns for landlords who invested early or upgraded their units to meet tenant expectations.
3. Flexibility Through Short-Term Leasing
The growth of platforms like Airbnb and travel recovery post-pandemic has reignited interest in short-term rentals. In high-tourism areas like Pasay (near MOA) or BGC, landlords offering 1–6 month leases are seeing higher income than traditional yearly contracts. If managed properly, this model can double monthly earnings while maintaining flexibility.
4. Government Support for Real Estate Growth
Manila's local governments and national infrastructure programs—like Build Build Build—continue to enhance connectivity and accessibility. New train lines, better roads, and township developments increase the appeal of once-overlooked areas. For landlords, this means previously underrated neighborhoods are now viable options for profitable rental opportunities.
5. Operating Costs Are Manageable with Smart Planning
While rental income is the main goal, landlords must also manage monthly costs such as association dues, utility bills (if covered), repairs, and occasional upgrades. Fortunately, in Manila, these costs remain relatively reasonable—especially for condominium units in well-managed buildings. Budgeting for routine maintenance, using energy-efficient appliances, and building a network of reliable service providers can keep expenses low. By planning ahead and avoiding reactive spending, landlords can preserve a healthy profit margin and maintain property value over time.
6. Tenant Behavior Favors Well-Managed Units
Today's tenants value responsive property management, clean and safe environments, and amenities such as gyms, pools, and coworking spaces. Properties with active landlord or professional management support get better reviews, longer lease terms, and fewer vacancies. Investing in these service aspects boosts rental yield and tenant loyalty.
7. Capital Appreciation Still Adds Value
Beyond monthly rental income, Manila properties— especially condominiums in central business districts — continue to appreciate in value. A unit purchased at ₱5M in 2020 may now be worth ₱6M or more, depending on location and upkeep. This dual return model (rent + appreciation) makes rental properties a highly viable investment in 2025.
So, is it profitable to rent out property in Manila in 2025? Absolutely — but success depends on location, strategy, and property management. With increasing rental rates, a strong tenant pool, and rising property values, landlords who adapt to market demands can achieve consistent returns and long-term growth. Whether you're an overseas Filipino, a local investor, or a first-time landlord, now is a promising time to get into — or expand in — the Manila rental market.
SOURCE:
Comments