Fiji’s construction sector is experiencing a robust expansion, with a remarkable 10.2% increase in total construction activity for the quarter ending in June, bringing the total valuation to $144 million. According to ANZ’s recent Pacific Insight report, there has been a notable year-on-year growth of 17.2% when comparing this quarter in 2025 to the same period last year. Senior Pacific Economist Kishti Sen highlighted that overall construction activity rose by 5.6% on a moving annual total basis, reaching $491 million.
The driving force behind this growth is civil engineering construction, which includes vital projects in transport, utilities, mining, and heavy industry. The report indicates a 9.9% year-on-year increase in the value of work completed in this sector, amounting to $283 million. Additionally, non-residential building construction—covering commercial and industrial facilities—demonstrated an impressive rise of 10.8% in value, reaching $195 million for the year ending in June 2025.
Conversely, the residential building sector has shown stability, maintaining around $30 million per year without notable growth. Nevertheless, Sen remains optimistic that non-residential building projects will be the key driver of construction growth beginning in 2026. The increasing spatial demands in Fiji have catalyzed investment in hotels, office buildings, shopping centers, warehouses, and factories.
Various factors are fueling this construction boom, including Fiji’s enhanced status as a regional distribution hub, improved access to financing, reduced borrowing costs, and heightened interest from foreign investors. This positive trend in construction and building permits reflects an optimistic outlook for the Fijian economy, as augmented investment promotes sector growth while potentially lifting living standards and creating job opportunities.
The findings of this report align with earlier evaluations noting that building approvals have surged in recent months, expected to surpass records from previous years. However, challenges exist, particularly labor shortages as construction workers increasingly turn to overseas opportunities. Tackling this issue may involve importing skilled labor and enhancing visa processing to sustain this upward trend in Fiji’s construction industry.
As Fiji navigates these challenges and opportunities, the construction sector is set to emerge as a critical player in driving economic growth and fostering community development in the years to come.