Residential Construction Market in the Philippines Estimated to Achieve a CAGR of 8.19% by 2016, Reports Timetric03 Jul 2012 • by Natalie Aster
Infrastructure construction was the largest market in the Philippine construction industry in 2010, accounting for 36.9% of the total industry value. The infrastructure construction market recorded a compound annual growth rate (CAGR) of 20.91% during the review period (2006–2010), which was supported by the State-of-the-Nation Address (SONA) infrastructure projects that were mostly completed by the end of 2010. The energy and communication infrastructure category is expected to be the major growth driver of infrastructure construction over the forecast period, due to the Transmission Development Plan (TDP) initiated by National Transmission Corporation. This project is expected to be complete by 2015 and involves investments to construct additional transmission infrastructure and to develop existing transmission infrastructure.
The expanding Filipino population created a surge in demand for housing, especially multi-family housing, which led to a housing backlog of 6 million in the country. With rapid urbanization, the housing dynamics of the country are registering a gradual change. In larger towns like Manila, an increase in the demand for multi-family housing is being observed, as it is a cheaper option compared to single-family housing. The new report «Construction in the Philippines – Key Trends and Opportunities to 2015» by Timetric states that the residential construction market is estimated to achieve a CAGR of 8.19% over the forecast period (2012–2016).
Construction in the Philippines – Key Trends and Opportunities to 2015
Published: April, 2012
Price: US$ 1.250,00
Commercial construction was the third-largest market with the share of 18.0% of the industry value in 2010, after recording a CAGR of 9.65% during the review period. The growth in retail buildings and office buildings, which came as a result of the growing population and expanding economy following increasing industrial activities, supported the performance of the commercial construction market. WMI expects the market will grow at a CAGR of 8.67% over the forecast period, due to the continued support from the retail buildings and office building categories. A considerable proportion of the country’s growing population is in a young and economically active age group, which is expected to make the Philippines an attractive destination for retailers over the forecast period.
Institutional construction was the fourth-largest market in the industry in 2010, after recording a CAGR of 17.56% during the review period. The market growth was largely driven by investments to develop educational institutions and healthcare facilities, which are designed to foster economic growth and to address the country’s growing healthcare demands.
Industrial construction is the smallest construction market, and accounted for 3.0% of the industry value in 2010. The market recorded a CAGR of 10.59% during the review period, since the manufacturing plants recorded a CAGR of 11.78%, and the chemical and pharmaceutical plants which recorded a CAGR of 11.86%. The market is anticipated to grow at a CAGR of 8.54% over the forecast period.
More information can be found in the report “Construction in the Philippines – Key Trends and Opportunities to 2015” by Timetric.
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