Fiji’s construction sector is experiencing a notable surge, with total construction activity increasing by 10.2% in the quarter ending June, reaching a valuation of $144 million. According to ANZ’s latest Pacific Insight report, there has been a significant year-on-year increase of 17.2% when comparing the same quarter in 2025 to that of 2024. Senior Pacific Economist Kishti Sen pointed out that on a moving annual total basis, overall construction activity rose by 5.6%, reaching $491 million.
The primary driver of this growth is civil engineering construction, which encompasses transport, utilities, mining, and heavy industry. The report indicates that the value of work completed in this sector climbed by 9.9% year-over-year to reach $283 million. Furthermore, non-residential building construction, including commercial and industrial structures, saw an impressive rise of 10.8% in value for the year ending June 2025, totaling $195 million.
However, the residential building sector has shown consistency, hovering around $30 million per year without significant growth momentum. Sen expressed optimism that non-residential buildings will emerge as the main engine for construction growth starting in 2026. Increased spatial needs in Fiji have led to new investments in hotels, office towers, shopping centers, warehouses, and factories.
Several factors are contributing to this construction boom, including Fiji’s enhanced role as a regional distribution hub, easier access to finance, reduced borrowing costs, and growing interest from foreign investors. This upward trajectory in construction and building permits signifies a positive outlook for the Fijian economy, as increased investment not only boosts the sector but also has the potential to uplift living standards and generate jobs for residents.
The report resonates well with previous assessments indicating that building approvals have soared in recent months, expected to exceed prior records set in previous years. However, challenges remain, particularly with labor shortages as construction workers are increasingly drawn to overseas opportunities. Addressing this issue through the potential importation of skilled labor and improved visa processing may be essential for maintaining this upward momentum in Fiji’s construction sector.
As Fiji continues to navigate these challenges and opportunities, the construction industry is poised to become a pivotal contributor to economic growth and community development in the years ahead.