The Philippines Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q4 2025)
Description
The Philippines Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q4 2025)
Summary
GlobalData expects the Philippine construction industry to expand by 3% in real terms in 2025, supported by an increase in the total value of building permits approved, coupled with private investments in the renewable and transportation infrastructure projects. According to the Philippine Statistics Authority (PSA), the total value of building permits issued grew by 6.4% year-on-year (YoY) in the first eight months of 2025, with the value of approved non-residential building permits rising by 12.9%, during the same period. However, in the short term, the Philippine construction sector is expected to experience a slight slowdown due to delays in significant projects, alongside a decrease in foreign direct investment (FDI) and the ongoing corruption scandal. As reported by the Department of Economy, Planning and Development (DEPDev), there are 43 infrastructure projects, valued at PHP13.3 billion ($230.5 million), that are classified critical because of delays stemming from budgetary and funding flow issues, as of July 2025. These projects reflect challenges within the infrastructure sector of the Philippines, include a poor business environment, weak planning and coordination, as well as challenges in financing.
The construction industry is expected to register an average annual growth rate of 6.9% between 2026 and 2029, supported by investment in transport infrastructure, renewable energy and industrial projects. Growth over the forecast period will also be driven by the government’s approved national budget for the year 2026, which includes a total spending of PHP6.8 trillion ($117.7 billion), representing a 7.4% increase compared to PHP6.3 trillion ($109.6 billion) spending announced in the 2025 national budget. Some of the major allocations under the 2026 Budget include PHP411.2 billion ($7.1 billion) for the healthcare sector, PHP182.5 billion ($3.2 billion) for rail transport development and another PHP35.1 billion ($608.2 million) for the education sector. Growth will be driven by the Philippine Energy Plan (PEP) 2023-2050, which is aimed at raising the share of renewable energy in total power mix from 22% in 2023 to 35% by 2030 and 50% by 2040. Furthermore, forecast period growth will also be bolstered by the country’s 2026 National Expenditure Program, under which the government, has allocated PHP6.4 billion ($110.9 million) for the national rural electrification program.
GlobalData’s Construction in the Philippines - Key Trends and Opportunities to 2029 (Q4 2025) report provides detailed market analysis, information, and insights into the Philippine construction industry, including -
This report provides a comprehensive analysis of the construction industry in the Philippines. It provides -
Summary
GlobalData expects the Philippine construction industry to expand by 3% in real terms in 2025, supported by an increase in the total value of building permits approved, coupled with private investments in the renewable and transportation infrastructure projects. According to the Philippine Statistics Authority (PSA), the total value of building permits issued grew by 6.4% year-on-year (YoY) in the first eight months of 2025, with the value of approved non-residential building permits rising by 12.9%, during the same period. However, in the short term, the Philippine construction sector is expected to experience a slight slowdown due to delays in significant projects, alongside a decrease in foreign direct investment (FDI) and the ongoing corruption scandal. As reported by the Department of Economy, Planning and Development (DEPDev), there are 43 infrastructure projects, valued at PHP13.3 billion ($230.5 million), that are classified critical because of delays stemming from budgetary and funding flow issues, as of July 2025. These projects reflect challenges within the infrastructure sector of the Philippines, include a poor business environment, weak planning and coordination, as well as challenges in financing.
The construction industry is expected to register an average annual growth rate of 6.9% between 2026 and 2029, supported by investment in transport infrastructure, renewable energy and industrial projects. Growth over the forecast period will also be driven by the government’s approved national budget for the year 2026, which includes a total spending of PHP6.8 trillion ($117.7 billion), representing a 7.4% increase compared to PHP6.3 trillion ($109.6 billion) spending announced in the 2025 national budget. Some of the major allocations under the 2026 Budget include PHP411.2 billion ($7.1 billion) for the healthcare sector, PHP182.5 billion ($3.2 billion) for rail transport development and another PHP35.1 billion ($608.2 million) for the education sector. Growth will be driven by the Philippine Energy Plan (PEP) 2023-2050, which is aimed at raising the share of renewable energy in total power mix from 22% in 2023 to 35% by 2030 and 50% by 2040. Furthermore, forecast period growth will also be bolstered by the country’s 2026 National Expenditure Program, under which the government, has allocated PHP6.4 billion ($110.9 million) for the national rural electrification program.
GlobalData’s Construction in the Philippines - Key Trends and Opportunities to 2029 (Q4 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
Table of Contents
55 Pages
- 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 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, Gross Domestic Capital Formation in Mining and Construction Machinery (PHP Million, 2018 Constant Prices)
- Figure 10: The Philippines, Construction Materials Retail Price Index in the National Capital Region (2012=100)
- Figure 11: The Philippines, Loans Outstanding for Construction (PHP Billion)
- Figure 12: The Philippines, Approved Building Permits (PHP Billion)
- Figure 13: The Philippines, Total Approved Foreign Investments (Current Prices, PHP Billion)
- Figure 14: The Philippines, Construction Projects Momentum Index
- Figure 15: South-East Asia, Construction Projects Momentum Index
- Figure 16: The Philippines, Commercial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 17: The Philippines, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 18: The Philippines, Accommodation and Food Service Activities Value-Add (PHP Billion, 2018 Constant Prices)
- Figure 19: The Philippines, Loans Outstanding for Accommodation and Food Service Activities (PHP Billion)
- Figure 20: The Philippines, Wholesale and Retail Trade Value-Add, at 2018 Constant Prices, % Change YoY
- Figure 21: The Philippines, Industrial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 22: The Philippines, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 23: The Philippines, Mining and Quarrying Value-Add (PHP Billion, 2018 Constant Prices)
- Figure 24: The Philippines, Manufacturing Value-Add (PHP Billion, 2018 Constant Prices)
- Figure 25: The Philippines, Loans Outstanding for Manufacturing (PHP Billion)
- Figure 26: The Philippines, Total Exports ($ Billion)
- Figure 27: The Philippines, Infrastructure Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 28: The Philippines, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 29: The Philippines, Transportation and Storage Value-Add (PHP Billion, 2018 Constant Prices)
- Figure 30: The Philippines, Loans Outstanding for Transportation and Storage (PHP Billion)
- Figure 31: The Philippines, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 32: The Philippines, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 33: The Philippines, Electricity Generation, Steam, Water, and Waste Management Value-Add (PHP Billion, 2018 Constant Prices)
- Figure 34: The Philippines, Information and Communication Value-Add (PHP Billion, 2018 Constant Prices)
- Figure 35: The Philippines, Loans Outstanding for Electricity, Gas, Steam and Air-Conditioning Supply (PHP Billion)
- Figure 36: The Philippines, Institutional Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 37: The Philippines, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 38: The Philippines, Education Value-Add (PHP Billion, 2018 Constant Prices)
- Figure 39: The Philippines, Human Health and Social Work Activities Value-Add (PHP Billion, 2018 Constant Prices)
- Figure 40: The Philippines, Loans Outstanding for Education (PHP Billion)
- Figure 41: The Philippines, Loans Outstanding for Human Health and Social Work Activities (PHP Billion)
- Figure 42: The Philippines, Residential Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 43: The Philippines, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 44: The Philippines, Real estate and Ownership of Dwellings Value-Add (PHP Billion, 2018 Constant Prices)
- Figure 45: The Philippines, Loans Outstanding for Real Estate Activities (PHP Billion)
- Figure 46: The Philippines, Residential Property Price Index (2019=100)
- Figure 47: The Philippines, Approved Residential Building Permits (PHP Billion)
- Figure 48: The Philippines, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 49: The Philippines, Headquarters of Key Consultants (% of Total Project Pipeline)
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