According to the Orders of Engineers in Beirut and Tripoli, the number of construction permits declined by an annual 15.73%to settle at 7,171 permits by June 2018. The Construction Area Authorized by Permits (CAP) also slipped by 20.9% year-on-year (y-o-y) to stand at 5.01M square meters (sqm), which most likely indicates that investors are preferring smaller construction areas for their projects.
In a regional breakdown, the deterioration registered in the number of permits reflected a slowdown in the construction activity in all governorates.
In details, Mount Lebanon grasped the largest share of permits issued (38.58% of total permits), with 2,838 construction permits issued by June 2018, down by 6.03% y-o-y. The South of Lebanon (grasping 18.84% of total), witnessed a yearly decline of 7.21% in the number of construction permits, which reached 1,351 allocated permits over the same period. In Nabatiyeh (constituting 12.89% of total issued permits), 924 permits were issued in H1 2018, down 14.44% compared to H1 2017. Moreover, in the Bekaa (9.15% of total permits), the number of construction permits decreased by an annual 13.34% to reach 656 permits. Similarly, in Beirut (5.05% of total), the number of construction permits contracted by 2.95% y-o-y to stand at 362 permits in H1 2018.
In the North, the number of permits contracted from 1,824 permits by June 2017 to 1,040 permits by June 2018. The CAP also shrank from 1.5M sqm in H1 2017 to 1.05M sqm in the same period of 2018.
Number of Construction Permits in H1
Source: Orders of Engineers in Beirut & Tripoli