Makati City’s Central Business District (CBD) has long been the country’s most established commercial center. With the introduction of new zoning rules, it is once again setting the stage for how prime land in the area will be used in the years ahead. The updated ordinance raises maximum floor area ratios (FAR) and allows greater flexibility for mixed-use projects, giving landowners, developers, and investors new options in shaping the city’s future.

Higher FAR Means More Space for Development

A key change in the revised zoning is the inclusion of higher FAR levels. FAR, or floor area ratio, defines how much total building space can be constructed in relation to the size of a lot. With higher limits now in place, certain sites in Makati can support more floor space than before.

This matters in a district where land is scarce and expensive. Developers can design larger projects that make better use of land, while property owners with older, smaller buildings now have stronger incentives to redevelop their sites.

More Flexibility for Mixed-Use Projects

Another important change is the broader allowance for mixed-use developments. This makes it easier to combine offices, residences, retail, and even hotels within one project.

These types of developments are increasingly in demand as they bring work, living, and leisure closer together. For companies and residents, it means more convenience. For developers, it provides multiple income streams, making projects more sustainable over the long term.

What It Means for Stakeholders

For landowners, higher FAR can increase the value of their properties by allowing bigger and more efficient projects. Developers can now justify higher acquisition costs if they can fully maximize a site’s capacity.

From an investment standpoint, the new rules make it possible to design projects that respond better to current market needs while also remaining relevant in the long term.

Better Use of Space for the Public

The updated zoning rules also encourage developments that add value beyond the properties themselves. By promoting larger and mixed-use projects, the framework creates opportunities for public spaces, wider walkways, and greener areas that improve the overall experience of people in the district.

Keeping Makati Competitive

These adjustments are designed to ensure Makati keeps pace with newer business districts by supporting larger, more modern projects. While new construction will still depend on demand, financing, and tenant activity, the framework now supports developments that meet higher sustainability standards and make more efficient use of land.

Over time, these changes will encourage the redevelopment of older properties and the rise of new, mixed-use buildings that reflect today’s market realities. For stakeholders, the higher FAR and expanded flexibility present opportunities to rethink how properties in Makati CBD can evolve in the years ahead.

Navigating Opportunities in a Changing Market

Understanding how these revised zoning rules affect property values, redevelopment potential, and long-term strategies is essential for landowners, developers, and investors. Our team offers expertise in investment sales, valuation, and development advisory to help stakeholders assess opportunities and make informed decisions in the evolving Makati market.

Considering larger or mixed-use projects under the new FAR rules? Our team provides data-backed insights on land values, project feasibility, and investment strategies to help you maximize opportunities. Email us at inquire@leechiu.com for expert guidance.