By Heather Caitlin P. Mañago, Researcher
APPROVED constructing permits inched down 2.2% 12 months on 12 months in February, as high material costs and weaker residential demand weighed on construction activity.
Preliminary data from the Philippine Statistics Authority (PSA) showed constructing projects covered by the permits numbered 14,996 in February from 15,341 a 12 months earlier.
This was a turnaround from the three.2% expansion in February 2025 and the revised 1.6% growth in January 2026.
This was the weakest pace in two months or for the reason that 2.6% drop in December 2025.
In February, construction projects covered 3.58 million square meters (sq.m) of floor area, down 3.5% 12 months on 12 months from 3.71 million sq.m.
These constructing projects that received approval were valued at P56.34 billion, 28.1% higher than a 12 months earlier when it reached P43.99 billion.
“Downbeat economic recovery prospects and mounting constructing materials costs weighed on construction project appetite for February,” Marco Antonio C. Agonia, an economist on the University of Asia and the Pacific, said in an e-mail.
“The dip in approved constructing permits in February was mainly driven by weakness on the residential side,” Ser Percival K. Peña-Reyes, director of the Ateneo Center for Economic Research and Development, said in a Viber message.
Mr. Peña-Reyes attributed the contraction to a mixture of high rates of interest dampening housing demand, softer household spending, and cautious developers.
“It was largely the results of tighter financing conditions and softer housing demand outweighing modest gains in nonresidential construction.”
In February, permits for residential projects, which accounted for 61.8% of the entire, fell 5.8% to 9,273.
These projects were valued at P16.42 billion, down from P18.67 billion a 12 months earlier.
Single homes, which accounted for 81.7% of the residential category, fell 9.4% 12 months on 12 months to 7,578.
Applications for apartment buildings also plunged 24.4% to 1,020 from 1,350 in February last 12 months.
Meanwhile, applications for duplex or quadruplex homes soared 381.6% to 549 during that month.
Nonresidential projects, alternatively, increased 3.4% 12 months on 12 months to three,542 from 3,426 in February 2025. This accounted for 23.6% of the entire.
These permits were valued at P36.41 billion, rising 67% from a 12 months earlier when it reached P21.81 billion.
Meanwhile, approved industrial construction applications inched up 0.3% to 2,426. These made up 68.5% of all nonresidential projects.
Industrial permits also rose 13.7% to 308, while institutional projects climbed 17.6% to 595 approvals.
Agricultural projects totaled 171 approvals, 24.8% higher than the 137 approvals a 12 months earlier.
Meanwhile, other nonresidential works declined 54.8% 12 months on 12 months to 42 approvals in February.
Permits for additions, or construction that increases the peak or area of an existing constructing, also fell 4.1% to 514 approvals.
Alteration and repair permits totaled 1,098 in February, 8% lower from a 12 months earlier and were valued at P2.46 billion.
By region, Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) had probably the most approved construction projects in the course of the period, accounting for 27.4% of the entire with 4,113 permits.
This was followed by Central Luzon (13.9% share with 2,090 permits), and Ilocos Region (9.3% share with 1,390 permits).
“The larger project shares in Calabarzon, Central Luzon, and Ilocos Region show property developers’ preference for projects in suburban areas outside of the dense Metro Manila core,” said Mr. Agonia.
Mr. Peña-Reyes added that this trend likely reflects aggressive decentralization and infrastructure projects unlocking recent growth corridors.
“We expect further declines in the approaching months as the results of the Middle East war weighs on property demand and pushes up construction costs,” Mr. Agonia said.
He also noted that elevated borrowing costs resulting from the conflict are also hampering developer appetite.
Mr. Peña-Reyes, meanwhile, said that while a continued sharp decline is unlikely, a “weak-to-flat trend” is the more realistic near-term outlook.
“One can expect mixed data in March and a gradual recovery over the remaining of 2026, slightly than a powerful rebound,” he added.
The PSA said construction statistics are compiled from the copies of original application types of approved constructing permits in addition to from demolition and fencing permits collected monthly by the agency’s field personnel from the offices of local constructing officials nationwide.