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.
The analyst 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
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 analyst 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
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
