Philippines Construction Industry Report 2024: Output Expected To Reach PHP 2.58 Trillion By 2028

(MENAFN- GlobeNewsWire - Nasdaq) Dublin, Oct. 04, 2024 (GLOBE NEWSWIRE) -- 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. 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.
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. 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 Dynamics by Value, Volume, and Number of Units: This report provides a comprehensive data-centric view of size and structure, industry dynamics, and end market opportunities in Philippines's building and infrastructure construction industry.
• The report provides a detailed analysis of the residential construction market, covering various types of construction, development stages, price points, and key cities. KPIs include value, volume, and number of units, offering a comprehensive view of this sector.
• Commercial Construction Outlook: Provides construction outlook by value and volume across office buildings, retail buildings, hospitality buildings, restaurant buildings, and sports facilities.
• Institutional Construction Outlook: Provides construction outlook by value and volume across manufacturing plant buildings, metal & material processing buildings, and chemical & pharmaceutical buildings.
• Industrial Construction Outlook: Provides construction outlook by value and volume across manufacturing plants and educational buildings.
• Infrastructure Construction Outlook: This report provides growth dynamics and market analysis for three key sections: marine and inland, utility system and transport infrastructure construction.
• City Level Analysis: Provides outlook of the top 10 cities in Philippines by construction value.
• The Construction Cost Structure Analysis module in this report provides a detailed outlook on construction costs by construction value, such as material, labor, equipment, and others. At a granular level, it offers a comprehensive material cost analysis by type of materials and labor cost by type of work, ensuring stakeholders deeply understand the cost structure.

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