Dublin, Feb. 23, 2026 (GLOBE NEWSWIRE) -- The "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)" report has been added to ResearchAndMarkets.com's offering.
Philippine construction industry was forecast 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.
Report Scope
- 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
Key Topics Covered:
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
For more information about this report visit https://www.researchandmarkets.com/r/1zq1o1
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