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Renewable energy

Philippines Construction Market to Grow 6.2% in 2025, Supported by Public and Private Investments

Strategic Insights

— 2 min read

The construction industry in the Philippines is expected to grow in real terms by 6.2% in 2025, driven by public and private sector investments in transport infrastructure and renewable energy projects. The growth is supported by an increase in construction loans and building permits issued, with the average value of the Philippine banking system's loans outstanding for construction rising by 13.2% year-on-year (YoY) in January-February 2025. The government has allocated PHP861.2 billion ($14.9 billion) for transport infrastructure projects, PHP257.1 billion ($4.5 billion) for water infrastructure projects, and PHP29.3 billion ($507.9 million) for the construction of education facilities, among others. 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.

Key Takeaways:

  • The construction industry in the Philippines is expected to grow in real terms by 6.2% in 2025, supported by public and private sector investments.
  • The average value of the Philippine banking system's loans outstanding for construction rose by 13.2% YoY in January-February 2025.
  • The total value of building permits approved grew 22% YoY during the same period, according to the Philippine Statistics Authority (PSA).
  • The government allocated PHP861.2 billion ($14.9 billion) for transport infrastructure projects, PHP257.1 billion ($4.5 billion) for water infrastructure projects, and PHP29.3 billion ($507.9 million) for education facilities.
  • 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 and tourism projects.
  • The government added 14 new projects to its existing public-private partnership (PPP) pipeline in April 2025, bringing the total projects to 187 valued at PHP2.6 trillion ($45.1 billion).
  • Some of the major ongoing projects include the PHP18.3 billion ($317.2 million) Iloilo Global City project and the PHP5.3 billion ($91.9 million) Subic International Airport project.

Statistics:

  • The construction industry in the Philippines is expected to grow 6.2% in 2025.
  • The average value of the Philippine banking system's loans outstanding for construction rose by 13.2% YoY in January-February 2025.
  • The total value of building permits approved grew 22% YoY in January-February 2025.
  • The government allocated PHP861.2 billion ($14.9 billion) for transport infrastructure projects in 2025.
  • The construction industry is expected to register an annual average growth rate of 7.2% between 2026 and 2029.
  • The government added 14 new projects to its existing PPP pipeline in April 2025, bringing the total projects to 187 valued at PHP2.6 trillion ($45.1 billion).

Sources:

  • Bangko Sentral ng Pilipinas (BSP)
  • Philippine Statistics Authority (PSA)
  • Research and Markets
  • Philippine government's 2025 Budget
  • Bangko Sentral ng Pilipinas (BSP) - Loans Outstanding for Construction (January-February 2025)
  • Philippine Statistics Authority (PSA) - Building Permits Approved (January-February 2025)

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