Picture Makati. What comes to mind? High-rise buildings, bustling streets, the headquarters of major corporations, multinational companies, and financial institutions, luxurious condominiums—all symbols of wealth and economic opportunity.
When you think of Metro Manila, Makati is undoubtedly one of the first cities that comes to mind. To use a popular Filipino term, Makati lifestyle is “sosyal,” associated with high social status. But are your perceptions of Makati as polished as its skyscrapers? Maybe not.
Let me break it to you. Last year, Makati was behind Quezon City in terms of contribution to the region’s gross domestic product (GDP), according to Philippine Statistics Authority (PSA) data.
Quezon City secured the largest share of the NCR's economy. With a GDP value of P1.27 trillion, it contributed 19.3 percent to the region's total of P6.57 trillion. Makati followed with P1.18 trillion or 18 percent, trailing by P90 billion.
And here's another surprise: Makati doesn't hold the record for the fastest-growing economy in Metro Manila in 2023. Parañaque City led with an 8.7 percent economic expansion, followed by Pasay City at 6.8 percent.
Makati grew at a 6.3 percent rate, ranking third among the six fastest-growing cities in the region. The other cities were Mandaluyong (5.9 percent), Taguig (5.8 percent), and Marikina (5.5 percent). All six cities exceeded the NCR’s regional average of 4.9 percent in 2023. Where was Quezon City in this picture?
Quezon City's Traffic
Quezon City, with its prominence linked to Cubao as the “center of the universe,” also symbolizes its challenges. Frustrating traffic mirrors its relatively sluggish economic growth. Although it led the NCR economies in terms of GDP share, Quezon City only ranked 10th in terms of growth. In 2023, it posted a 4.5 percent GDP growth, falling behind the average regional growth and expanding at a slower pace compared to the previous year’s 6.6 percent.
Other services led with 43.8 percent growth, while public administration and defense dropped by 6.1 percent, with all other industries posting positive growth in 2023. On average, each person (per capita GDP) in Quezon City contributed P405,112 worth of goods and services, about four percent more than the year before. This reflects an improved economic performance. How did Makati perform in these areas?
Makati: An Elite City
According to the PSA, Makati City posted the highest per capita GDP in the Philippines. This is at a country-wide level, not just within the NCR. In 2023, the city’s per capita GDP reached P1,778,002, a 4.9 percent increase from the previous year.
The average economic output of each person residing in Makati was four times higher than in Quezon City. Among industries, accommodation and food services posted the fastest growth at 27.2 percent, followed by other services and utilities. Meanwhile, public administration, defense, and compulsory social security saw a decline.
Having said all this, will Makati maintain its throne as the economic hub of the country? Compared to Quezon City, it appears so.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC), said that Quezon City’s significant contribution to the NCR economy is likely due to its larger area and numerous new developments, including businesses, property projects, and infrastructure.
“Makati is becoming increasingly crowded, with limited land for further business and commercial developments,” Ricafort said. In contrast, land and property prices in Quezon City remain lower than in Makati.
“More township projects, including new office spaces for business process outsourcing (BPOs) and traditional businesses, along with emerging entertainment developments, are also driving faster economic growth in Quezon City,” he added.
He noted that Quezon City’s growth and development are fueled by the conversion of large industrial sites, like old factories and warehouses, into new CBDs and high-rise projects. These developments, including upscale residential and commercial spaces, improve sales, profits, employment, and other business activities.
This larger land area, he explained, allows for the construction of more malls, commercial spaces, schools, government offices, and other institutions, which could drive further development. Other features that support the city’s growth? Ricafort said it is its strategic location, including major transport hubs like the Cubao area with bus terminals linking various provinces and regions.
MRT-7, the country’s largest infrastructure project, along with other major mass transport projects, also traverses the city. In addition, Quezon City has been hosting numerous sports events and concerts near Cubao, home to major TV and radio networks. The country’s largest universities are also located there.
Now this begs the question: Are these developments in Quezon City enough to snatch Makati’s crown? Perhaps not.
“Makati is still convenient for the country’s largest businesses, wealthiest families, diplomats, and expatriates given well-established infrastructure, safety, and security for many decades,” Ricafort asserted.
While Quezon City has more mass transport systems, such as the subway and other rail lines, which make it a more affordable alternative and would allow for continued growth due to its larger available space, Makati may keep itself seated.
If anything, Makati’s closest contender is not Quezon City. According to Ricafort, it’s Bonifacio Global City (BGC) in Taguig. That could be a separate story.