The analyst expects the construction industry in the Philippines to grow in real terms by 6.2% in 2025, supported by public and private sector investments to develop transport infrastructure and renewable energy projects, coupled with an increase in construction loans and building permits issued. According to the Bangko Sentral ng Pilipinas (BSP), the average value of the Philippine banking system’s loans outstanding for construction rose by 13.2% year-on-year (YoY) in January-February 2025, while the total value of building permits approved grew 22% YoY during the same period, according to the Philippine Statistics Authority (PSA). Also, as part of 2025 Budget, the government allocated PHP861.2 billion ($14.9 billion) for the development of transport infrastructure projects, followed by PHP257.1 billion ($4.5 billion) for water infrastructure projects, PHP29.3 billion ($507.9 million) for the construction of education facilities, PHP23 billion ($398.7 million) as part of Health Facilities Enhancement Program to upgrade and construct healthcare facilities, and PHP7.1 billion ($123.1 million) for development of academic buildings and school facilities.
Over the remainder of the forecast period, the construction industry is expected to register an annual average growth rate of 7.2% between 2026 and 2029, supported by investments in transport infrastructure, coupled with investments in tourism and industrial projects as part of the country’s public-private partnership (PPP) projects. In April 2025, the government added 14 new projects to its existing PPP pipeline, bringing the total projects to 187 projects valued at PHP2.6 trillion ($45.1 billion). Some of the major ongoing projects are PHP18.3 billion ($317.2 million) Iloilo Global City project and the PHP5.3 billion ($91.9 million) Subic International Airport project
The 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:
Over the remainder of the forecast period, the construction industry is expected to register an annual average growth rate of 7.2% between 2026 and 2029, supported by investments in transport infrastructure, coupled with investments in tourism and industrial projects as part of the country’s public-private partnership (PPP) projects. In April 2025, the government added 14 new projects to its existing PPP pipeline, bringing the total projects to 187 projects valued at PHP2.6 trillion ($45.1 billion). Some of the major ongoing projects are PHP18.3 billion ($317.2 million) Iloilo Global City project and the PHP5.3 billion ($91.9 million) Subic International Airport project
The 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.
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
