The Philippines Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q1 2025)
Summary
The Philippine construction industry is expected to expand by 6.8% in real terms in 2025, supported by an increase in construction loans and building permits issued, coupled with public and private investments in the development of transport infrastructure and energy projects. According to the Bangko Sentral ng Pilipinas (BSP), the average value of the Philippine banking system’s loans outstanding for construction grew by 12.9% year on year (YoY) in 2024, preceded by an annual growth of 8.9% in 2023. Growth in 2025 is also expected to be supported by an increase in the budgetary allocation for the development of the construction industry. However, high construction material prices, rising debt, falling Foreign Direct Investment (FDI), coupled with cessation of major projects due to non-compliance with project timelines expected to pose downside risk to the construction industry over the short term. According to the Board of Investments (BOI), the total FDI received in the country fell by 38.9% YoY in 2024, falling from PHP889.2 billion ($16.2 billion) in 2023 to PHP543.6 billion ($9.9 billion) in 2024.
GlobalData expects the construction industry in the Philippines to register an annual average growth rate of 7.2% between 2026 and 2029, supported by the development of transport infrastructure, coupled with investments in energy projects and institutional projects as part of the country’s public-private partnership (PPP) projects. In January 2025, the government reported that it has currently 174 PPP projects in various stages of pipeline with a combined value of PHP2.5 trillion ($49.2 billion). Major ongoing projects are North-South Commuter Railway and Metro Manila Subway Project which are scheduled to become operational by the end of 2028. Growth over the forecast period will also be supported by the government’s focus to increase the share of renewable energy in the total power mix from 22% in 2023 to 35% by 2030 and 50% by 2040
GlobalData’s Construction in the Philippines - Key Trends and Opportunities to 2029 (Q1 2025) report provides detailed market analysis, information and insights into the Philippine construction industry, including -
- The Philippine construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Philippine construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline
This report provides a comprehensive analysis of the construction industry in the Philippines. It provides -
- 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
- 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 GlobalData's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
- 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
- 7.1 What is this Report About?
- 7.2 Definitions
- 7.3 CRI Methodology
- 8 About GlobalData
- 9 Contact Us
- List of Tables
- Table 1: Construction Industry Key Data
- Table 2: The Philippines, Key Economic Indicators
- Table 3: The Philippines, Commercial Construction Output by Project Type (Real % Change), 2020–29
- Table 4: The Philippines, Top Commercial Construction Projects by Value
- Table 5: The Philippines, Industrial Construction Output by Project Type (Real % Change), 2020–29
- Table 6: The Philippines, Top Industrial Construction Projects by Value
- Table 7: The Philippines, Infrastructure Construction Output by Project Type (Real % Change), 2020–29
- Table 8: The Philippines, Top Infrastructure Construction Projects by Value
- Table 9: The Philippines, Energy and Utilities Construction Output by Project Type (Real % Change), 2020–29
- Table 10: The Philippines, Top Energy and Utilities Construction Projects by Value
- Table 11: The Philippines, Institutional Construction Output by Project Type (Real % Change), 2020–29
- Table 12: The Philippines, Top Institutional Construction Projects by Value
- Table 13: The Philippines, Residential Construction Output by Project Type (Real % Change), 2020–29
- Table 14: The Philippines, Top Residential Construction Projects by Value
- Table 15: The Philippines, Key Contractors
- Table 16: The Philippines, Key Consultants
- Table 17: The Philippines, Construction Output Value (Real, $ Million)
- Table 18: The Philippines, Construction Output Value (Nominal, PHP Billion)
- Table 19: GlobalData Construction Market Definitions
- Table 20: Risk Dimensions
- Table 21: Ratings, Scores and Definitions
- List of Figures
- Figure 1: South-East Asia, Construction Output (Real % Change), 2023–29
- Figure 2: The Philippines, Construction Output by Sector (Real % Change), 2023–25 and 2026–29
- Figure 3: The Philippines, Risk Summary
- Figure 4: The Philippines, Risk Regional Comparison
- Figure 5: The Philippines, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020–29
- Figure 6: The Philippines, Construction Output Value, by Sector (Real, $ Million), 2020–29
- Figure 7: The Philippines, Construction Value-Add (PHP Billion, 2018 Constant Prices)
- Figure 8: The Philippines, Gross Fixed Capital Formation in Construction (PHP Billion, 2018 Constant Prices)
- Figure 9: The Philippines, Construction Materials Retail Price Index in the National Capital Region (2012=100)
- Figure 10: The Philippines, Loans Outstanding for Construction (PHP Billion)
- Figure 11: The Philippines, Approved Building Permits (PHP Billion)
- Figure 12: The Philippines, Construction Projects Momentum Index
- Figure 13: South-East Asia, Construction Projects Momentum Index
- Figure 14: The Philippines, Commercial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 15: The Philippines, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 16: The Philippines, Accommodation and Food Service Activities Value-Add (PHP Billion, 2018 Constant Prices)
- Figure 17: The Philippines, Loans Outstanding for Accommodation and Food Service Activities (PHP Billion)
- Figure 18: The Philippines, Wholesale and Retail Trade Value-Add, at 2018 Constant Prices, % Change YoY
- Figure 19: The Philippines, Industrial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 20: The Philippines, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 21: The Philippines, Mining and Quarrying Value-Add (PHP Billion, 2018 Constant Prices)
- Figure 22: The Philippines, Manufacturing Value-Add (PHP Billion, 2018 Constant Prices)
- Figure 23: The Philippines, Loans Outstanding for Manufacturing (PHP Billion)
- Figure 24: The Philippines, Total Exports ($ Billion)
- Figure 25: The Philippines, Infrastructure Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 26: The Philippines, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 27: The Philippines, Transportation and Storage Value-Add (PHP Billion, 2018 Constant Prices)
- Figure 28: The Philippines, Loans Outstanding for Transportation and Storage (PHP Billion)
- Figure 29: The Philippines, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 30: The Philippines, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 31: The Philippines, Electricity Generation, Steam, Water, and Waste Management Value-Add (PHP Billion, 2018 Constant Prices)
- Figure 32: The Philippines, Information and Communication Value-Add (PHP Billion, 2018 Constant Prices)
- Figure 33: The Philippines, Loans Outstanding for Electricity, Gas, Steam and Air-Conditioning Supply (PHP Billion)
- Figure 34: The Philippines, Institutional Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 35: The Philippines, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 36: The Philippines, Education Value-Add (PHP Billion, 2018 Constant Prices)
- Figure 37: The Philippines, Human Health and Social Work Activities Value-Add (PHP Billion, 2018 Constant Prices)
- Figure 38: The Philippines, Loans Outstanding for Education (PHP Billion)
- Figure 39: The Philippines, Loans Outstanding for Human Health and Social Work Activities (PHP Billion)
- Figure 40: The Philippines, Residential Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 41: The Philippines, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 42: The Philippines, Real estate and Ownership of Dwellings Value-Add (PHP Billion, 2018 Constant Prices)
- Figure 43: The Philippines, Loans Outstanding for Real Estate Activities (PHP Billion)
- Figure 44: The Philippines, Real Estate Price Index (2014=100)
- Figure 45: The Philippines, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 46: The Philippines, Headquarters of Key Consultants (% of Total Project Pipeline)
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