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Workplace-residential proximity will, once again, become a factor to consider as people return to on-site work. Lamudi expects residential and commercial property demand to remain robust in two of the leading commercial powerhouses in the country: Makati and Taguig.
The two cities shared the spotlight in the first half of the year due to a territorial tug-of-war. According to the Supreme Court ruling, Taguig has rights over BGC and seven other barangays that Makati had long administered, also known as the “embo” districts.
Meanwhile, in 3Q 2023, Lamudi data showed that it was a good time for Makati and Taguig—at least from an investor’s perspective. Both cities were among the top searched locations for condo properties on Lamudi, with Makati coming out first and Taguig second. Makati also had the highest supply share for condo properties in 3Q.
Makati and Taguig condo renters are willing to pay Php 60K at most per month
In 3Q 2023, both cities were considered a valuable rental market. In Makati alone, rental inquiries were 50% higher than purchase inquiries. In terms of condo rentals, units priced from Php 15K to Php 60K were the most in-demand in the city.
Makati reaches over three million in daytime population during a typical workday, as per city government data. The lack of resistance to resuming on-site work bodes well for investors and property managers with leasing activities in the area.
Condo rental seekers in Taguig were also most interested in units priced Php 15K to Php 60K. Taguig was the second most searched location for condo properties on Lamudi; a staggering 80% of its property supply on the platform for 3Q were condo units.
Taguig leads premium condo supply share in Metro Manila
Looking at the price distribution of condo rentals in Makati and Taguig for 3Q 2023, the latter had a higher supply of upscale units costing Php 60K to Php 200K. Taguig, therefore, remains a hotspot for a high-tier lifestyle.
Newer developments in the area could attract starting families with more disposable income. Meanwhile, those looking for a wider range of properties in terms of price and type would find more options in Makati.
The second most popular property type in Makati in terms of supply was house and lot, making it a viable location for affluent families in search of more privacy.
Makati is the top location for commercial property in 3Q 2023
Aside from being a condo property hotspot, Makati was the most searched location for commercial properties on Lamudi in 3Q 2023. Makati overtook Quezon City despite the latter having a larger land area of 166.2 square kilometers.
For office spaces specifically, Makati was also the most searched location in Metro Manila in the same quarter. Commercial properties in the city, including offices and retail spaces for lease, are considered high-yield investments, especially with 51% of the Philippine workforce back on-site.
Meanwhile, Taguig led the primary business districts in terms of occupied flexible workspaces in 3Q, as per Colliers’ Office Market Report. On the Lamudi platform, Taguig was the fifth most searched city for co-working facilities. Property managers and developers of flexible workspaces are encouraged to capture demand from businesses implementing flight-to-cost measures and hybrid work setups.
“Embo” districts brace for spillover effects of Makati Subway construction
CBD areas such as Taguig and Makati are expected to have higher daytime populations, which makes mobility a major concern. Transit developments like the Makati Subway would help ease congestion within these cities, all while boosting land values.
However, due to the territorial dispute between the two cities, the 10-kilometer railway was deemed no longer “feasible.” Two of the proposed railway stations will be located in West Rembo and Pembo, which Taguig now has jurisdiction over.
Nevertheless, Lamudi sees real estate opportunities in areas near the proposed subway as the Makati government reviews new plans for the project.
On the Lamudi platform, “embo” areas saw a ten percent quarter-on-quarter growth in inquiries in 3Q 2023—likely due to the expected developments surrounding these locations.
Makati and Taguig indeed present opportunities to generate ROI through higher land values. This would continue as the South sees new infrastructure and business landscapes evolve.
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