According to the Orders of Engineers in Beirut and Tripoli, the number of construction permits decreased by 15.94% year-on-year (y-o-y) to stand at 12,842 permits by November 2018. The Construction Area Authorized by Permits (CAP) also fell by an annual 23.65% to 8.41M square meters (sqm), indicating investors’ growing interest in smaller construction areas for their projects.
In a regional breakdown, Mount Lebanon grasped the largest share of permits issued (37.74% of total ), with 4,846 construction permits issued by November 2018, down by an annual 9.44 %.In South Lebanon (grasping 19.71% % of total), construction permits also fell 6.29% over the same period to stand at 2,531.
The North ranked 3rd in the total construction permits with a stake of 15.04% of the total, equivalent to 1,932 permits by November 2018 compared to 1,764 by November 2017.
In Nabatiyeh (constituting 13.19% of total issued permits), 1,694 permits were issued by November 2018, also down by 15.47% compared to the same period in 2017.
Following the same trend, in the Bekaa & Beirut (9.49% and 4.83% of total), the number of construction permits contracted by an annual 12.49% and 9.36% to reach 1,219 and 620 permits respectively.
The real estate sector—a cornerstone of the economy—seems to have performed poorly in the first 11 months of 2018, with construction permits dropping significantly in all regions. However, the new awaited government should initiate necessary reforms which are needed to unlock conditional loan, boost investor confidence and kick-start the economy.
Number of Construction Permits by November
Source: Orders of Engineers in Beirut and the North