Approved building permits inched up by 0.8% year on year in 2025, as construction activity moderated amid macroeconomic headwinds and the flood control mess in the second half of the year. Data from the Philippine Statistics Authority showed the number of building permit approvals rose to 181,832 in 2025 from 180,341 a year earlier.
This was the weakest pace in two years, slower than the 5.3% growth in 2024. Construction projects covered 45.24 million square meters of floor area, up 5.6% from 42.84 million square meters in 2024. Approved building projects were valued at P601.42 billion in 2025, 6.7% higher than the P563.89 billion logged in the previous year.
Residential buildings made up the bulk of the total number of projects, inching up by 1.2% last year to 117,832 from 116,427 in 2024. The total value of residential projects reached P253.64 billion, up by 2% from P248.65 billion a year earlier. Single-type houses rose by 3.1% year on year to 100,552 in 2025 from 97,490.
Nonresidential construction projects dipped by 0.6% annually to 38,991 last year from 39,238 in 2024. This accounted for 21.4% of the total number of constructions in 2025. The value of these nonresidential projects totaled P278.65 billion, 11.1% higher than P250.86 billion in 2024.
Regions like Calabarzon logged the highest number of approved building permits at 44,819, making up 24.6% of all permits. Central Luzon followed with 24,889 (13.7% share) and Ilocos Region with 14,048 (7.7% share). Construction projects may see a lift in the second semester, but it may take time for pre-crisis growth to return, according to analysts.
The sector is expected to pick up at a modest, measured pace this year with easing rates and continued infrastructure spending. In short, the sector is not losing steam; it's transitioning to a more sustainable, regionally driven growth path, analysts said.
Experts noted that risks to the downside include elevated borrowing rates and building material costs along with subverted economic confidence. However, they also pointed out that regions like Calabarzon and Central Luzon continue to lead because of improving infrastructure, proximity to Metro Manila, and the steady shift of economic activity outward.
