CENTRAL Visayas construction activity slowed in 2025, with total building value declining by 5.2 percent, reflecting softer spending amid a sharp contraction in residential projects, according TO Central Visayas 2025 Report released by the Department of Economy, Planning and Development
Data from the Philippine Statistics Authority showed total construction value fell to P37.28 billion in 2025 from P39.30 billion in 2024, while approved building permits dropped 6.4 percent to 12,670. Total floor area also declined by 5 percent to 3.10 million square meters.
The slowdown was largely driven by a steep decline in residential construction, which dropped 21.8 percent in value to P13.14 billion. The segment also posted reductions in both permits and floor area, signaling weaker housing development across the region.
Cebu City recorded the sharpest contraction, with residential construction value plunging 74.5 percent, reflecting constraints such as land scarcity and rising property costs that limit large-scale
developments.
In contrast, nearby urban centers recorded strong growth. Lapu-Lapu City and Mandaue City saw residential construction surge by 177.4 percent and 132.1 percent, respectively, pointing to a shift in housing demand toward more affordable and accessible locations outside Cebu City.
Analysts attributed this trend partly to hybrid work arrangements, particularly in the business process outsourcing sector, which allow workers to live farther from traditional business districts while maintaining access to workplaces.
Non-residential
segment expands
Despite the overall slowdown, non-residential construction provided a bright spot, growing 19.4 percent to P21.76 billion in 2025.
The increase was driven by fewer but larger-scale projects, with Mandaue City posting a 430.7 percent surge, indicating the approval of major infrastructure developments. Cebu City also recorded a 16.2 percent rise, while Lapu-Lapu City saw modest growth.
Additions and renovations decline
Other construction activities weakened significantly. Construction additions plunged 72.4 percent to P133.6 million, while alteration and repair work dropped 40 percent to P2 billion. Other construction activities declined 47.4 percent
These declines suggest smaller-scale projects and a normalization following post-pandemic upgrades.
Outlook for 2026
Looking ahead, construction activity is expected to gradually recover, supported by easing financing conditions, continued infrastructure rollout, and tourism-related investments.
Rebuilding efforts following a recent earthquake and typhoon Tino may also boost construction demand, although the pace will depend on insurance payouts, financing access, and government support. / KOC