Unlocking the Philippines' Growth Potential: Infrastructure and Real Estate in a Duterte-Dominated Senate Era

The May 12, 2025 Philippine Senate elections have delivered a pivotal shift in political dynamics, with Duterte allies poised to secure a commanding presence in the upper house. This outcome promises to accelerate policy execution, particularly in infrastructure development, federalism reforms, and China-backed projects. For investors, this is a critical moment to capitalize on sectors set to boom under a Duterte-dominated Senate.

Political Stability = Accelerated Policy Execution

The projected Duterte majority (5–7 Senate seats, with potential alliances) eliminates legislative gridlock, enabling swift passage of agenda items like the Federalism Roadmap and infrastructure spending bills. With 12 new senators joining the 24-member body, Duterte’s coalition can bypass opposition filibusters, fast-tracking projects.

Historically, infrastructure spending averaged 3.5% of GDP. With Duterte’s allies in control, this could surge to 5–6% by 2028, unlocking opportunities in construction and real estate.

Infrastructure Plays: Build, Build, Build 2.0

Duterte’s “Build, Build, Build” program remains central to his legacy. A Senate majority will greenlight projects stalled by prior political divisions, from railways to renewable energy grids. Key investment angles:

1. Construction Firms:

• DMCI Holdings (PSE:DMCI): A top-tier player in roads, bridges, and power plants.
• Metro Pacific Investments (PSE:MPCI): Dominates toll roads, railways, and utilities.

DMCI’s stock rose 22% in 2024 amid infrastructure wins. With Duterte’s support, this could climb further as contracts flow.

2. Energy and Utilities:

Federalism reforms will decentralize power, boosting demand for localized energy infrastructure. Investors should target firms like AC Energy (PSE:ACE), which is expanding solar and wind projects.

Real Estate: Urbanization Meets Federalism

Federalism reforms will empower regional governments, spurring urban development in cities like Cebu and Davao. This creates demand for residential, commercial, and industrial spaces.

Top Developers to Watch:

• SM Prime Holdings (PSE:SMPH): Leading malls and mixed-use projects in growing cities.
• Ayala Land (PSE:ALI): Focuses on high-end residential and tech hubs.

SM Prime’s revenue grew 18% in Q1 2025 as regional investment boomed—expect this to accelerate.

China-Backed Projects: Geopolitical Gains, Economic Lift

Duterte’s pro-China stance has already secured $15 billion in Belt and Road Initiative (BRI) projects. A Senate majority will fast-track agreements like the South Luzon Tollway and Subic-Clark-Tarlac Expressway, benefiting logistics firms and construction materials suppliers.

Trade has surged by 40% since 2020; expect this to climb as BRI projects materialize.

Risks: Navigating the Terrain

While Duterte’s dominance reduces legislative risk, geopolitical tensions with the U.S. and corruption scandals linger. However, the upside—driven by infrastructure-led GDP growth (projected 6–7% by 2026)—outweighs these concerns.

Conclusion: Act Now or Miss the Boom

The Duterte Senate majority is a game-changer for Philippine growth. Investors who position in construction, real estate, and China-linked infrastructure plays now will capture outsized returns as the Philippines enters a decade of transformation. The window is open—act before the rally begins.

This article is for informational purposes only. Investors should conduct their own due diligence.