The Department of Economy, Planning and Development projects a construction slowdown in Central Visayas due to rising costs for steel, cement, and fuel, alongside the potential for increased interest rates.
Extreme heat from El Niño may disrupt construction schedules and impact structural durability, as work shifts to nighttime hours and concrete curing faces risks from high temperatures.
Regional residential construction values fell by 21.85 percent to P3.24 billion, though Mandaue City saw a 314.58 percent increase and Bohol recorded a 7.3 percent rise in construction value.
CONSTRUCTION activity in Central Visayas is expected to slow further in the coming quarters as geopolitical tensions drive up the cost of key building materials while the prospect of higher interest rates dampens investor appetite for capital-intensive projects.
According to the Central Visayas Regional Economic Situationer for the first quarter of 2026, the Department of Economy, Planning and Development (DepDev) said the conflict involving the United States, Israel and Iran could increase steel and cement prices, driving up the cost of new developments.
Fuel, a major input in cement and steel production, is also becoming more expensive, raising logistics and transportation costs for construction materials.
The agency also warned that the possibility of interest rate hikes could make investors more cautious in pursuing large-scale construction projects, further tempering activity in the sector.
Adding to the risks, extreme heat associated with El Niño could disrupt project implementation as construction work shifts to nighttime to avoid high daytime temperatures. Excessive heat may also weaken concrete curing, increasing the risk of cracking and affecting the durability of structures, according to DepDev.
Residential construction
Despite the challenging outlook, residential construction remained the region’s largest segment in the first quarter.
Approved residential construction projects in Central Visayas totaled 2,271 permits with a combined value of P3.24 billion, although this was 21.85 percent lower than a year earlier. Cebu Province accounted for P1.16 billion in residential construction value despite the decline.
Bohol stood out as the lone bright spot, posting a 7.3 percent increase in residential construction value to P976.31 million, suggesting larger and higher-value housing projects during the quarter. In contrast, residential construction values declined in Cebu City and Lapu-Lapu City by 33.58 percent and 29.01 percent, respectively.
Meanwhile, Mandaue City recorded the biggest gain in residential construction value, surging 314.58 percent, reflecting robust housing and condominium development.
Non-residential construction across the region weakened, with approved construction value falling 21.24 percent year on year. Cebu Province bucked the trend, posting a 47.06 percent increase to P1.53 billion, while Mandaue City also logged a 494.25 percent jump, supported by continued commercial and industrial investments.
Construction additions also accelerated, with approved construction value climbing 462 percent to P65.04 million, led by Cebu Province. Alteration and repair activities likewise remained strong, driven by rehabilitation work following the northern Cebu earthquake and typhoon Tino, with Cebu Province posting a 307.15 percent increase in construction value. / KOC