May 21, 2026
The Philippine Construction Market to Reach US$41.6 billion in 2026

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The Philippine construction market is valued at approximately $39.40 billion in 2024 and is projected to grow significantly to roughly $45.1 billion by 2025. The following breakdown is converted into US Dollars (USD) based on historical average exchange rates.

Construction Volume Breakdown (USD)

Year	Total Market Value	Public Construction	Private Construction
2023	$31.11 Billion	$12.35 Billion (Infrastructure)	$8.27 Billion (Permits)
2024	$39.40 Billion	$13.40 Billion (IFPs Focus)	$9.63 Billion (Permits)
2025 (F)	$45.10 Billion	$14.90 Billion (Transport Focus)	$11.10 Billion (Commercial)

(F) = Forecasted. Note: Figures for public and private sub-sectors are based on specific budget allocations (e.g., transport infrastructure) and building permit values, while the "Total Market Value" includes the full project lifecycle.

Sector Insights

1. Public Sector (Government & Infrastructure)

2023: Driven by the Philippine Development Plan 2023–2028, with initial spending focused on clearing the pipeline of 3,224 local programs.
2024: The "Build Better More" program accelerated with a focus on 207 flagship projects. The market value reached $39.40 billion, heavily supported by government-led transport and energy initiatives.
2025: The government has allocated approximately $14.9 billion (PHP 861.2 billion) specifically for transport infrastructure within the 2025 budget. Total public-private partnership (PPP) projects are valued at roughly $45.1 billion.

2. Private Sector (Residential & Non-Residential)

2023: The private sector's primary indicator—approved building permits—showed a value of $8.27 billion. Residential projects made up the largest share, valued at $3.63 billion (PHP 200.85 billion).
2024: Private investment saw a 9.4% rise in permit value to $9.63 billion. Non-residential projects (factories, malls, offices) overtook residential in growth, reaching a value of $4.28 billion.
2025: Forecasts suggest continued growth of 8.4%. While residential permits grew by 3.9%, non-residential permits surged by 11.5% in early 2025, signaling high private sector confidence in industrial and commercial development.

The Philippine construction market is projected to reach approximately $41.6 billion in 2026. While the sector is facing a short-term real-term output decline of roughly 1.5% due to rising material costs and project delays, the government has authorized record-breaking infrastructure budgets to sustain momentum.

Top 10 Infrastructure Projects Under Construction in the Philippines (2026)

1. Metro Manila Subway Project

Type: Urban Rail / Subway
Current Status: Tunnel boring, depot works, and station construction are actively progressing across Metro Manila.
Estimated Completion: Partial operations by 2028; full completion around 2031–2032
Estimated Cost: Approximately US$7.0 billion

2. North–South Commuter Railway (NSCR)

Type: Regional Railway
Current Status: Large-scale viaducts, stations, and rail systems under construction throughout Luzon.
Estimated Completion: 2028
Estimated Cost: Approximately US$15 billion

3. Bataan–Cavite Interlink Bridge

Type: Sea-Crossing Bridge
Current Status: Early construction packages and approach infrastructure works are ongoing.
Estimated Completion: 2029–2030
Estimated Cost: Approximately US$3.9–4.0 billion

4. New Manila International Airport

Type: International Airport / Aerotropolis
Current Status: Massive land development, reclamation, and initial vertical construction underway in Bulacan.
Estimated Completion: Phase 1 targeted for 2028
Estimated Cost: Approximately US$15 billion

5. MRT Line 7

Type: Urban Rail Transit
Current Status: Stations, guideways, and systems installation are nearing advanced stages.
Estimated Completion: 2026–2027
Estimated Cost: Approximately US$1.5 billion

6. LRT-1 Cavite Extension

Type: Light Rail Transit
Current Status: Extension toward Cavite continues with multiple stations approaching completion.
Estimated Completion: 2027
Estimated Cost: Approximately US$1.3 billion

7. Davao City Bypass Construction Project

Type: Expressway / Tunnel Highway
Current Status: Tunnel excavation and major road sections are actively under construction.
Estimated Completion: 2026–2027
Estimated Cost: Approximately US$1.3 billion

8. Makati Subway Project

Type: Urban Subway
Current Status: Project implementation remains under revision, though preparatory and coordination works continue.
Estimated Completion: Beyond 2028 (subject to revisions)
Estimated Cost: Approximately US$2.5 billion

9. Panguil Bay Bridge

Type: Bridge Infrastructure
Current Status: Main bridge structure is nearing final completion stages.
Estimated Completion: 2026
Estimated Cost: Approximately US$130 million

10. New Clark City Development

Type: Smart City / Government & Mixed-Use Development
Current Status: Ongoing phased development including government centers, transport links, utilities, and mixed-use districts.
Estimated Completion: Multi-phase development extending into the 2030s
Estimated Cost: Approximately US$60 billion (long-term masterplan investment)

(Reported by Building.hk)