Building permits show resilience in March 2024

The number of building permits approved in the Philippines fell 15.5% in March 2024 compared to the same month last year, according to data from the Philippine Statistics Authority (PSA).

Local building officials issued 13,320 permits in March 2024, down from 15,764 in March 2023. This follows a 2.2% decline in February 2024.

Residential buildings accounted for the largest share of permits issued in March 2024, with 8,964 permits, or 67.3% of the total. This category also saw the steepest annual decline, dropping 18.1% from 10,949 permits in March 2023. Single-family homes comprised the majority of residential permits (86.4%).

Non-residential construction permits reached 3,105, representing 23.3% of the total. This category experienced a 6.1% annual decrease. Commercial buildings were the most common type of non-residential construction, accounting for 71.2% of permits in this category.

Permits for additions, which involve expanding the height or area of existing buildings, and alterations and repairs of existing structures made up 3.1% and 6.2% of the total, respectively. Both categories saw annual declines, with additions falling 14.5% and alterations and repairs dropping 18.3%.

Construction value dips in March

The total value of construction projects in March 2024 amounted to P34.07 billion, a 24.3% decrease from P45 billion in March 2023. Non-residential buildings accounted for nearly half (48.1%) of the total construction value, with P16.37 billion. This represented a 24.5% decline from the previous year.

Commercial buildings led the way in non-residential construction value, at P8.08 billion (49.4%).

Residential buildings had a total construction value of P15.06 billion in March 2024, representing 44.2% of the total. This reflected a 23.4% decrease from P19.66 billion in March 2023. Single-family homes again held the top spot within residential construction value, at P11.18 billion (74.3%).

Construction floor area, cost see decrease

The total floor area of construction projects in March 2024 was 2.84 million square meters, a 14% decrease from 3.30 million square meters in March 2023.

The average cost of construction in March 2024, excluding alterations and repairs and other non-residential projects, was P11,142.74 per square meter. This was 11.4% lower than the P12,576.76 per square meter average cost in March 2023.

Residential buildings had the highest average construction cost per square meter (P11,812.95 )in March 2024, followed by non-residential buildings (P10,602.23 and additions (P10,364.91). Among residential buildings, condominiums had the highest average cost (P28,915.49).