- Gabriel Mikael
- Jul 2, 2025
- 4 min read
Here’s an updated material cost forecast for 2025, focusing on the primary construction materials commonly used in the Philippines, with projections based on current market trends, inflation, supply chain dynamics, and anticipated demand in the coming year.
2025 Material Cost Forecast:
Material | 2024 Price (Current) | 2025 Forecasted Price | % Increase | Key Drivers of Price Change |
Cement (per bag) | ₱220 – ₱250 | ₱250 – ₱275 | 5% – 10% | Rising energy costs (fuel and electricity), ongoing supply chain issues, and increased demand from infrastructure projects under "Build, Build, Build". |
Steel (per ton) | ₱75,000 – ₱80,000 | ₱80,000 – ₱88,000 | 7% – 10% | Global steel shortages due to geopolitical tensions, higher fuel costs, and increasing demand for infrastructure and housing projects. |
Rebar (per ton) | ₱65,000 – ₱70,000 | ₱70,000 – ₱75,000 | 7% – 8% | Increased demand for housing, roads, and commercial developments, paired with import difficulties and rising fuel costs. |
Concrete (per cubic meter) | ₱7,500 – ₱8,000 | ₱8,000 – ₱8,800 | 5% – 10% | Fuel price hikes affecting transportation and production costs, along with rising demand from the housing and commercial sectors. |
Timber/Wood (per cubic meter) | ₱35,000 – ₱45,000 | ₱38,000 – ₱50,000 | 5% – 10% | Increased cost of imported wood due to weaker peso and logistics bottlenecks, plus growing demand for locally sourced timber due to sustainability trends. |
Tiles (per sqm) | ₱800 – ₱1,500 | ₱850 – ₱1,650 | 5% – 8% | Rising import costs, especially for higher-end imported tiles, and demand from mid- and high-end residential developments. |
Glass (per sqm) | ₱1,500 – ₱2,200 | ₱1,600 – ₱2,400 | 5% – 9% | Global glass shortages, rising production costs, and demand from both the residential and commercial sectors for large glass windows and facades. |
Electrical Supplies | ₱15,000 – ₱20,000 (per project) | ₱16,000 – ₱22,000 | 5% – 10% | Rising prices for copper (a key component in wiring), as well as increases in other imported materials for electrical fixtures and systems. |
Plumbing Supplies | ₱10,000 – ₱15,000 (per project) | ₱10,500 – ₱16,500 | 5% – 8% | Increased costs of PVC pipes and fittings, driven by petroleum prices (PVC is derived from petroleum) and importation challenges. |
Paint (per liter) | ₱180 – ₱220 | ₱190 – ₱240 | 5% – 10% | Increased raw material costs and higher transportation costs, especially for higher-quality or imported paints. |
Roofing Materials (per sqm) | ₱450 – ₱650 | ₱480 – ₱700 | 5% – 8% | Rising prices for metal sheets and insulation materials, driven by the global steel market and higher energy costs for production. |
Key Drivers Behind the Price Forecast:
Global Supply Chain Issues:
Steel and cement shortages are expected to persist due to global shipping bottlenecks, geopolitical tensions, and labor disruptions. This will drive material prices up, especially for imported products.
Local production is also affected by fuel costs, transportation bottlenecks, and high energy prices, making even domestically sourced materials more expensive.
Fuel and Energy Price Increases:
Fuel costs are a significant factor in the rising prices of construction materials, especially for heavy materials like cement, steel, and concrete, which require substantial energy for production and transportation.
Electricity price hikes are expected to increase the cost of materials that require energy-intensive manufacturing processes, such as tiles, glass, and roofing materials.
Inflation and Peso Depreciation:
Inflationary pressures in the Philippines, driven by rising fuel prices, higher food costs, and a weaker peso, are expected to contribute to higher material prices—especially for imported materials like steel, tiles, and electrical supplies.
The weak peso makes imported goods more expensive, which directly impacts the price of construction materials.
Infrastructure and Housing Demand:
The government’s continued focus on large-scale infrastructure projects (especially under the "Build, Build, Build" program) and rising demand for housing in urban areas are driving up the cost of construction materials, as more projects compete for limited resources.
Impact on House Construction Costs in 2025
Given the projected increase in material and labor costs, total construction expenses for a typical residential home are expected to rise by 5% to 10% in 2025. Here’s a forecast for a 100 sqm house:
Type of House | 2024 Estimated Cost (100 sqm) | 2025 Projected Cost | % Increase |
Low-Cost Housing | ₱2.5M – ₱3.5M | ₱2.75M – ₱3.85M | 5% – 10% |
Standard Mid-Range Home | ₱3.5M – ₱5M | ₱3.75M – ₱5.5M | 5% – 10% |
High-End Home | ₱5M – ₱6M | ₱5.25M – ₱6.6M | 5% – 10% |
Strategic Considerations for Builders:
Buy Materials Now:
If possible, purchase materials now or lock in prices with suppliers before the projected price increases. Bulk purchasing or long-term contracts could help mitigate the impact of rising costs next year.
Focus on Local Materials:
Given the expected rise in import costs, shifting to locally sourced materials (e.g., locally produced cement, wood, and roofing materials) could help manage costs better, as imported goods are expected to see larger price hikes due to the weak peso and shipping delays.
Leverage New Building Technologies:
Explore alternative building materials or techniques such as prefabricated materials or modular construction. These technologies can potentially reduce the overall construction time and labor costs, helping offset rising material costs.
Monitor Government Initiatives:
Keep an eye on government policies related to construction and real estate. Potential subsidies or tax incentives for green building materials or sustainable construction methods could help offset some of the costs, especially if you're working on large-scale projects or commercial developments.
Conclusion: Build Now or Wait?
Build Now:
Locking in 2024 material and labor costs will likely result in lower overall construction expenses. If you’re financing the project, locking in current interest rates (6%-8%) will also help you avoid future rate hikes that could increase financing costs.
Given the projected 5%-10% rise in material costs and similar increases in labor rates, building now is recommended for those looking to minimize overall costs.
Wait Until 2025:
If you’re considering waiting, be prepared to pay higher material and labor costs. However, new technologies and potential government incentives could slightly offset the rising costs.
If you expect significant improvements in building technology or government-backed housing programs, waiting might provide long-term benefits, but the cost risk is higher in the short term.
