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
The Construction in the Philippines - Key Trends and Opportunities to 2029 (Q3 2025) report provides detailed market analysis, information, and insights into the Philippine construction industry, including:
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
The Construction in the Philippines - Key Trends and Opportunities to 2029 (Q3 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.
Scope
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
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
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
