CV construction value falls 12.8% despite more permits

CEBU, Philippines — Construction activity in Central Visayas weakened in the first quarter 2026 despite an increase in building permits, as higher material and fuel costs, rising logistics expenses and global economic uncertainty dampened project values.

Data from the Philippine Statistics Authority (PSA) showed approved building permits in the region rose 7.4 percent in the January-to-March period.

However, the total value of approved construction projects fell 12.8 percent to P6.47 billion from P7.42 billion a year earlier, indicating developers remained cautious amid rising costs.

Cebu Province remained the region’s largest construction market, accounting for P2.83 billion in approved projects. Bohol followed with P1.53 billion, although its construction value declined 22.8 percent from a year earlier.

Among the highly urbanized cities, Cebu City posted the largest construction value at P902.6 million, despite a 50.8 percent decline. Lapu-Lapu City saw construction value fall 57.7 percent to P376.8 million.

In contrast, Mandaue City emerged as the region’s fastest-growing construction market. Total construction value surged 439.3 percent, while approved floor area expanded 442.4 percent, driven by strong residential, commercial and industrial developments.

Mandaue City’s residential sector recorded a 314.6 percent increase in construction value, the highest in Central Visayas, reflecting robust demand for housing and condominium projects.

Commercial construction grew even faster. Non-residential construction value climbed 494.3 percent to P454 million, bucking the regional trend as investments continued to flow into commercial and industrial facilities.

Across Central Visayas, approved non-residential construction value fell 21.2 percent to P3.01 billion, signaling weaker investment in business establishments.

Cebu Province accounted for the largest share at P1.53 billion, while Cebu City and Lapu-Lapu City posted declines of 73.2 percent and 67.9 percent, respectively. Bohol’s non-residential construction value also dropped 47.1 percent.

Residential construction also slowed across the region. The number of approved residential permits declined 4.5 percent, while construction value fell  9.3 percent.

Cebu Province remained the largest residential market with P1.16 billion in approved construction value despite a 21.9 percent decline. Bohol, however, posted a 7.3 percent increase to P976.3 million, while residential floor area expanded 48.5 percent, suggesting a shift toward larger and higher-value housing projects.

Cebu City and Lapu-Lapu City recorded declines in residential construction value of 33.6 percent and 29 percent, respectively.

Other construction categories provided some support. The value of approved building additions jumped 462 percent to P65 million, led by Cebu Province. “Other construction” projects, which include demolition and landscaping works, rose 256 percent to P163.3 million, with Mandaue accounting for the largest share.

Meanwhile, alteration and repair works remained concentrated in Cebu Province and Cebu City, partly driven by reconstruction efforts following the Northern Cebu earthquake and Typhoon Tino.

The PSA said construction activity could weaken further in the coming quarters as higher steel, cement and fuel prices continue to raise development costs.

It also warned that geopolitical tensions, extreme heat linked to El Niño and the possibility of higher interest rates could slow investment in capital-intensive projects.