Philippines Construction Industry Report 2025: Output to Expand by 5.1% This Year, Supported by Increased Construction Loans and Building Permits, Along with PPI in Transport and Energy Projects - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "The Philippines Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q3 2025)" report has been added to ResearchAndMarkets.com's offering.

The Philippine construction industry is expected to grow by 5.1% in real terms in 2025, supported by increased construction loans and building permits, along with public and private investment in transport infrastructure and energy projects.

According to the Philippine Statistics Authority (PSA), the total value of approved building permits rose by 5.1% year on year (YoY) in the first half of 2025. By segment, the total value of non-residential building permits grew by 11.5% YoY in January-June 2025, while residential building permits increased by 3.9% over the same period. Growth in 2025 is also expected to be supported by a higher budget allocation for the development of the construction industry. The 2025 national budget includes total government spending of PHP6.8 trillion ($117.9 billion), up 10.1% from PHP5.8 trillion ($100.5 billion) in the 2024 budget.

However, factors such as high construction material prices, rising debt, falling foreign direct investment (FDI), and the cessation of major projects due to non-compliance with project timelines are expected to pose downside risks to the construction industry in the short term. According to the Board of Investments (BOI), total FDI fell by 64.4% YoY in the first half of 2025, from PHP189.5 billion ($3.3 billion) in January-June 2024 to PHP67.4 billion ($1.2 billion).

The analyst expects the Philippine construction industry to register an average annual growth rate of 7.2% between 2026 and 2029, supported by investment in transport infrastructure and energy projects. In June 2025, the government reported 207 Infrastructure Flagship Projects (IFPs) worth PHP10.2 trillion ($176.7 billion) across several key sectors under the "Build Better More" program, along with 3,224 infrastructure programs, activities, and projects (PAPs) under the Philippine Development Plan 2023-2028 Public Investment Program.

Growth over the forecast period will also be supported by the government's goal to increase the share of renewable energy in the total power mix from 22% in 2023 to 35% by 2030 and 50% by 2040

Scope

• Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in the Philippines, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector.
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants.

Reasons to Buy

• Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
• Assess market growth potential at a micro-level with over 600 time-series data forecasts
• Understand the latest industry and market trends
• Formulate and validate business strategies using the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 Risk Profile

4 Construction Outlook

4.1 All Construction

• Outlook
• Latest news and developments
• Construction Projects Momentum Index

4.2 Commercial Construction

• Outlook
• Project analytics
• Latest news and developments

4.3 Industrial Construction

• Outlook
• Project analytics
• Latest news and developments

4.4 Infrastructure Construction

• Outlook
• Project analytics
• Latest news and developments

4.5 Energy and Utilities Construction

• Outlook
• Project analytics
• Latest news and developments

4.6 Institutional Construction

• Outlook
• Project analytics
• Latest news and developments

4.7 Residential Construction

• Outlook
• Project analytics
• Latest news and developments

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/bk0mpw

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