Philippines Construction Industry Report 2024: Output to Grow by 8.4% this Year - Residential, Commercial, Institutional, Industrial, Infrastructure Segments to 2028 - ResearchAndMarkets.com

The "Philippines Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.

The construction industry in Philippines is expected to grow by 8.4% to reach PHP 1.94 trillion in 2024.

This market intelligence report offers a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in Philippines, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.

Despite near-term challenges in certain construction sectors, Philippines's construction industry is poised for significant growth. The industry is expected to grow steadily over the next four quarters, with the growth momentum continuing over the forecast period. A CAGR of 3.0% is projected during 2024-2028, with the country's construction output expected to reach PHP 2.58 trillion by 2028, indicating substantial growth potential.

The construction industry in the Philippines is poised for significant growth, driven by government investment, urbanization, and a focus on sustainability. While challenges such as labour shortages and rising material costs remain, the overall outlook is positive. Senior executives should focus on leveraging infrastructure, residential, and industrial construction opportunities while adapting to the increasing demand for sustainable practices. By aligning strategies with government initiatives and market trends, stakeholders can successfully navigate the evolving landscape of the Philippine construction industry.

Residential Construction: Addressing Housing Needs

• Government Initiatives for Affordable Housing: The residential construction sector will benefit from the government's commitment to constructing one million housing units per year through the Pambansang Pabahay para sa Pilipino Housing Program. This initiative addresses the country's housing deficit and improves living conditions.
• Rising Demand for Sustainable Housing: There is an increasing emphasis on sustainable building practices within the residential sector. Developers are incorporating eco-friendly materials and energy-efficient designs to meet regulatory standards and consumer preferences, aligning with global sustainability trends.

Commercial Construction: Revitalizing Urban Spaces

• Investment in Commercial Real Estate: The commercial construction sector is expected to see increased investments in office buildings, retail spaces, and mixed-use developments. The recovery of consumer spending and the growth of e-commerce drive demand for logistics and distribution centers.
• Focus on Smart and Sustainable Buildings: Developers are increasingly adopting smart building technologies that enhance energy efficiency and tenant experience. This trend is driven by regulatory requirements and growing consumer demand for environmentally friendly commercial spaces.

Institutional Construction: Enhancing Public Services

• Increased Spending on Education and Healthcare: The institutional construction sector benefits from heightened government spending on educational and healthcare facilities. In the 2024 budget, the government allocated PHP 2.2 trillion (USD 39.8 billion) to the education sector to improve infrastructure and access to services.
• Disaster Resilience in Institutional Projects: Given the Philippines' vulnerability to natural disasters, institutional projects increasingly incorporate resilience measures. New schools and hospitals are being designed to withstand environmental challenges, ensuring continuity of services.

Industrial Construction: Supporting Economic Growth

• Expansion of Manufacturing Facilities: The industrial construction sector is experiencing growth driven by increased demand for manufacturing and logistics facilities. The government's focus on enhancing local production capabilities and reducing reliance on imports is fuelling investments in this area.
• Investment in Renewable Energy Infrastructure: Significant investments are being made in renewable energy projects, particularly solar and wind energy. The government aims to increase the share of renewables in the energy mix, which will require extensive industrial construction efforts.

Infrastructure Construction: Building for the Future

• Focus on Infrastructure Development: The government has allocated PHP 214.3 billion (USD 3.8 billion) for infrastructure programs, focusing on major transportation projects such as the North-South Commuter Railway, Metro Manila Subway Phase 1, and LRT-1 Cavite Extension. These projects are part of the Build Better More (BBM) program, which aims to enhance connectivity and economic growth.
• Public-Private Partnerships (PPP) Expansion: The newly enacted Public-Private Partnership (PPP) Code is expected to enhance collaboration between the government and private sector, facilitating the realization of high-quality infrastructure projects. As of February 2024, 117 PPP projects, valued at PHP 2.4 trillion (USD 43 billion), are in the pipeline, including significant investments in transportation and utilities.
• Major Infrastructure Projects Underway: Infrastructure construction remains a cornerstone of the Philippines' development strategy, with major projects such as the Bulacan Airport and the Metro Manila Subway progressing. These projects are crucial for improving connectivity and supporting economic activities.
• Focus on Transportation Networks: The government prioritizes transportation infrastructure, including roads, railways, and ports, to enhance logistics and trade. Investments in transportation networks are essential for facilitating economic growth and regional integration.

Scope

Market Data and Insights: This report provides market size and forecast across 40+ construction segments for ten years from 2019 - 2028 in Philippines. KPIs covered include the following:

• Market size by value
• Market size by volume of construction
• Number of units

Philippines Construction Cost Structure Analysis: 10-year market size & forecast in value terms

• Cost Analysis by Type (Material, Labour, Equipment, Others)
• By Material & Work Cost: It provides the cost outlook of material costs by type of materials used in construction (Cement, Steel, Sand, Aggregates, Bricks, Wood, Windows Glazing, Flooring, Plumbing, Electrical, Painting, Other Materials)
• By Labour Cost: It provides the cost outlook of labour costs (RCC Construction Work, Masonry and Plastering Work, Plumbing Work, Water Proofing Work, Carpentry Work, Electrical Work, Tile Fixing Work, CATV Antenna Points, Painting Work, Departmental Labour)
• By Type of Construction (New, Re-Development)
• By Material Cost: It provides the cost outlook of material costs by type of materials used in construction (Concreting Sand, Stone Aggregate, Ordinary Portland Cement, Reinforced Concrete (Grade 30 MPA), Reinforced Concrete (Grade 40 MPA), High Tensile Steel bars, Mild Steel Round Bars, Structural Steelwork, Plywood Formwork (1800*900*12mm), Clay Bricks)
• Type of Labour (Skilled vs. unskilled)

Philippines Economic Indicators

Philippines Top Cities Construction Data

Philippines Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Housing type (multi family, single family)
• Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Price point/income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)

Philippines Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Green building by Housing type (multi family, single family)
• Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Green building by Price point/income level (luxury, mid-tier, affordable)

Philippines Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office (further broken down by Grade A, Grade B, and Grade C)
• Retail (further broken down by Grade A, Grade B, and Grade C)
• Hospitality (further broken down by Grade A, Grade B, and Grade C)
• Restaurant (further broken down by Grade A, Grade B, and Grade C)
• Entertainment
• Sports facility
• Other commercial building construction
• Construction stage (new construction, re-development & maintenance)

Philippines Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction
• Other commercial green building construction

Philippines Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

• Manufacturing Plants building construction
• Chemical & Pharmaceutical building construction
• Metal & Material Processing building construction
• Construction stage (new construction, re-development & maintenance)

Philippines Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare construction
• Educational construction
• Other building construction
• Construction stage (new construction, re-development & maintenance)

Philippines Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare green building construction
• Educational green building construction

Philippines Infrastructure Construction Sectors: 10-year market size & forecast in value terms by

• Marine and inland water infrastructure
• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
• Construction stage (new construction, re-development & maintenance)

Philippines Green Infrastructure Construction: 10-year market size & forecast in value terms

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