The redevelopment of the 250-hectare Makati Central Business District (CBD)—currently 99 percent built-up and filled with aging buildings primed for redevelopment—aims not only to unlock long-term property value but also highlights the district’s character and character, cultivated over decades. This enduring charm continues to attract both foreign and local investors, distinguishing Makati from the sleek modernity of Bonifacio Global City (BGC) in Taguig.
Tam Angel, Investment and Sales Director at Leechiu Property Consultants, emphasized during the firm’s Q2 2025 Philippine Property Market Report that revised zoning laws adopted by the Makati Commercial Estate Association, Inc. (MACEA) will boost property values and promote sustainable growth within Makati CBD.
Rezoning 250 hectares
In his presentation, Angel underscored that rezoning is essential to keep Makati CBD relevant and competitive in the years ahead.
He pointed out that the revised Makati zoning laws now allow mixed-use development across nearly all lots in the CBD, a shift from the previous limitations based on designated zones.
The changes now permit residential development along Ayala Avenue—once exclusive to office use—and allow for active retail and civic plazas around MRT stations.
The new law also introduces unified and higher floor area ratios (FAR): 16 for mixed-use; up to FAR 3 for retail across all lots; and FAR 7 for transit-oriented developments.
“These zoning updates allow greater density and flexibility in development,” Angel said. “They attract both local and global investors by enabling more diverse, high-value projects.”
Naturally, Angel added, land values and demand for high-end developments are expected to rise, positioning Makati as a more competitive and dynamic urban hub.
The broader redevelopment plan also includes enhancements in mobility, expanded green public spaces, and a modernized urban design.
“Because you can extract more return by being able to build more of these properties, effectively the property values will go up. And then that’s just on a cash basis—it does not yet include the long-term effect of this massive rezoning effort, having a very positive impact on the favorability of the city,” said Angel. “So before, you had all of these multinational companies go over to BGC because it’s more modern, it’s safer to walk around BGC because of the walkways, etc. So those will all be removed from the equation.”
Makati vs. BGC
Makati, often seen as playing second fiddle to the more contemporary BGC, remains a favorite among locals due to its modernity.
“It’s shiny, it’s new, it’s aspirational, it’s walkable. You can go to a lot of places. There are parks. It’s like being in another country. That’s why the Filipinos love it. It’s modernity. The buildings are the same. The sidewalks are the same. Because it’s not something that us Pinoys are used to,” said Angel.
“But, actually, if you talk to the foreigners—Hongkis, Singaporeans—if you ask them what they like, they like Makati better than BGC,” Angel continued. “Because they can feel it. They feel the culture, they feel the charm. They see that it’s been developed over a really long period of time, which allows it a sense of character and personality.”
While BGC was developed largely from 2008 onward, resulting in uniformly modern architecture, Makati’s evolution dates back to the 1960s, creating a layered urban landscape.
“But combine the old charm and the improvements in design, walkability, parks, and the zoning revisions—Makati CBD becomes a step up, but not another BGC. It may still be second fiddle to BGC for Filipinos, but the investing community will love the culture and history of old Makati,” he added.
Ayala Corporation, through Ayala Land Inc. (ALI), owns both Makati CBD and BGC and is therefore committed to protecting its interests in both districts. Though only separated by EDSA, BGC has pulled attention due to its modern appeal, despite ongoing access challenges.
“So, updating Makati means bringing it to the future without losing its charm because Ayala understands that the charm of Makati is important. The weight is the same wherever one is in Makati CBD, whether you live on Apartment Bridge or Ayala Avenue,” Angel said.
Renovation imperative
With 57 percent of buildings in Makati CBD already over 31 years old, and 10 percent nearing or exceeding 50 years, redevelopment is becoming increasingly necessary.
Angel noted that in cities like Paris, older buildings are preserved and maintained rather than torn down, offering a contrast to the redevelopment approach seen in Makati. However, Makati caters to a different clientele: global corporations that demand up-to-date standards in wellness, sustainability, and amenities.
“That’s why we need to redevelop these older buildings into newer buildings that will keep attracting our customers,” he said.
He also noted that while modern buildings can last 30 to 50 years, zoning and development guidelines have changed significantly over the past three decades, further supporting the need for redevelopment.
Early impact and long-term
Even before MACEA’s rezoning laws were enacted, signs of transformation were evident across Makati. Anghel pointed to developments such as the Triangle Garden near Ayala Tower 2, Park Central (former site of the Mandarin Hotel), and Park Villas behind the Manila Peninsula. Across from the former Mandarin site, SM is also building its Makati headquarters.
“A lot of the new buildings are gonna be there,” Angel said, pointing to SM, the BDO headquarters, and other projects. “The entire Paseo de Roxas strip is going to look brand new with the old charm.”
Key leases are nearing expiration as well. The Manila Peninsula’s lease runs only until 2030, while Dusit Thani’s extends to 2027. Across the area, ALI is reacquiring the more than one-hectare Asian Institute of Management (AIM) property for redevelopment, further reinforcing the area’s transformation. The Greenbelt redevelopment is also part of preparations for this change.
The Makati CBD spans from Amorsolo Street and Legazpi Street to Makati Medical Center, stretching toward one side of Buendia and EDSA. The other side, including Salcedo Village and Jupiter Street, falls outside MACEA’s jurisdiction.
With these ongoing and planned projects, Angel emphasized the importance of positioning for long-term value—especially while the real estate market remains soft.
“As an economy, and as a real estate market, we’re a good market. If you’re going to buy, it means that you see it growing in the future, never mind that there’s a slump now,” he concluded.
