Makati Real Estate: A Booming Investment in the Philippines
Date: September 20,2023
The Philippines is experiencing an unprecedented real estate boom, with property markets across the country thriving due to robust economic growth. One standout location at the heart of this boom is Makati City, particularly its Central Business District (CBD). Over the past few years, Makati has seen remarkable growth in property prices, making it an attractive destination for investors and homebuyers alike. In this blog, we'll explore the factors contributing to Makati's real estate success and why it remains a solid investment option in the Philippines.
Makati CBD: A Hub of Growth
Makati's CBD has witnessed significant growth in residential property prices, with a staggering 132% increase from 2010 to 2018. Notably, Makati's luxury 3-bedroom condominiums experienced a 15.55% price surge in 2018 alone, making the average price per square meter reach PHP 230,000 (US$4,371). This surge followed a series of consistent yearly increases, indicating the sustained demand for properties in the area.
Other major Metro Manila CBDs, such as Rockwell Center and Fort Bonifacio, have also experienced substantial price growth in their 3-bedroom condominiums. This growth has contributed to the overall success of the real estate market in the Philippines.
While property prices in Metro Manila's CBDs have seen substantial growth, nationwide trends show more moderate increases. The residential real estate price index increased by 4.4% (adjusted for inflation) during the year to Q3 2018. This suggests that the real estate boom is more concentrated in urban centers like Makati.
Demand for residential properties remains robust in Makati, driven by factors such as young professionals, starting families, and an influx of Mainland Chinese investors. In 2018, over 54,000 pre-sold condominium units were taken up in Metro Manila, surpassing the previous year's record. This sustained demand reflects the city's status as a thriving economic and cultural hub.
Makati's real estate boom is closely tied to the Philippine economy's growth. In 2018, the country's economy expanded by approximately 6.2%, positioning the Philippines as one of the fastest-growing economies in Emerging Asia. The positive economic outlook continues to attract investors to the region.
Diverse Range of Buyers
Makati stands out from other National Capital Region cities due to its ability to attract a diverse range of buyers. Unlike other areas with a dominant unit size or price point, Makati offers a wide variety of residential options. Units priced between PHP 5-10 million, PHP 10-20 million, PHP 20-50 million, and even below PHP 5 million all attract substantial interest from buyers, highlighting the city's inclusive real estate market.
Size and Demand
Makati also boasts a unique demand distribution in terms of unit size. While most National Capital Region cities have a majority of demand for studio/one-bedroom units, Makati's market sees a more balanced interest, with studio/one-bedroom units accounting for 43.3% of demand and two-bedroom condos at 34.4%.
The Estate Makati: A Prime Investment Opportunity
Source: lehner investments
One standout investment opportunity in Makati is The Estate Makati luxury condominium. This project represents a collaboration between two of the Philippines' largest developers, SM Development Corp. (SMDC) and Federal Land, Inc. It is described as the crown jewel of Philippine luxury real estate, featuring unparalleled amenities.
The Estate Makati offers a range of unit sizes, with the smallest unit at 151 square meters and three-story penthouse units occupying the top three floors, each with 225 square meters. These super-penthouse units even come with their own private pool. The project's outstanding features include its prime location and being the first Philippine development by the renowned British design firm Foster + Partners.
Makati's real estate market continues to flourish, driven by strong demand, economic growth, and a diverse range of buyers. Investors looking for a prime opportunity in the Philippines need not look further than Makati, with projects like The Estate Makati offering luxury and sustainability in one package. As the country's economy continues to thrive, Makati's real estate market is poised for sustained success in the years to come.