Construction projects in the Philippines saw their steepest decline in eight months, falling by nearly 15 percent to over 12,500 in January 2025, due to the massive decrease in residential-building constructions.

Data from the Philippine Statistics Authority (PSA) showed that the January figure marks the largest drop since May 2024 when construction projects shrank by over 15 percent.

The January number declined from nearly 14,700 in the same month last year. It also fell by five percent from December 2024’s annual rate.

Residential buildings, which accounted for the most constructions in January 2025, marked an over 14 percent drop from over 8,900 a year ago. Residential constructions totaled nearly 7,700 or over 61 percent of the overall projects.

Most residential projects were single-type houses, with nearly 6,900 constructions or 90 percent of the total.

Similarly, non-residential buildings—ranked second in January 2025—sharply declined to over four percent. It saw a nearly 15 percent increase a year ago.

A little over 3,100 construction projects were completed in non-residential type. It accounted for over 25 percent of the total building projects last year.

Most of the non-residential constructions were commercial buildings with nearly 2,300 constructions or nearly 70 percent of the total.

Also, alterations and repairs accounted for nearly eight percent, and other projects over two percent. Both of these fell by 17 percent and nearly 70 percent, respectively.

Meanwhile, additions—height or area expansion to existing buildings—rose by nearly 25 percent. It accounted for nearly four percent of January 2025 construction projects.

Increased value

While the volume declined, the total value of constructions in January increased by over 26 percent annually to ₱48.6 billion, up from ₱38.5 billion.

Non-residential buildings were valued at ₱24.2 billion, making up nearly half of the total construction value. This marked an over 40 percent increase from ₱17.2 billion in the same month last year.

Commercial buildings led non-residential constructions in January, with a total value of almost ₱11 billion, accounting for nearly 46 percent.

Meanwhile, residential buildings in January were valued at ₱20.9 billion, making up more than 43 percent of the total. This increased by 28 percent from ₱16.4 billion a year earlier.

Over half (56 percent) the value of residential buildings were accounted for by single-type buildings which posted the largest value of constructions at ₱11.7 billion.

Floor area

The total floor area of constructions, excluding alterations, repairs, and certain non-residential constructions due to the lack of reported data, reached 3.7 million square meters (sqm).

It expanded by nearly 30 percent from 2.9 million sqm a year earlier.

“Non-residential buildings accounted for more [than] half of the total floor area of constructions,” said Divina Gracia L. De Prado, deputy national statistician and PSA assistant secretary. It covered 2.2 million sqm, nearly 60 percent of the total floor area.

This reflects an annual increase of 52 percent from the posted floor area of non-residential buildings at 1.5 million sqm in the same month of 2024.

Meanwhile, residential constructions in January made up 39 percent of the total floor area, covering 1.5 million sqm. This expanded by over eight percent from 1.34 million sqm a year ago.