Construction Permits at a Six Year Low by September

The number of construction permits witnessed a yearly drop of 12.51% to reach its lowest level in 6 years at 11,227 in the first 9 months of the year, compared to a higher level of 12,833 during the same period last year. In the same context, the construction area authorized by permits (CAP) recorded a 13.26% year-on-year (y-o-y) decline, amounting to 9.15M sqm by September this year, compared to 10.55M sqm by September 2014.

 Noting that permits are usually issued at least 6 months after applications are filed, the fall in construction activity  is due to the ongoing slowdown in the whole economy attributed to the slump in Foreign Direct Investments (FDIs), the drops in tourism since 2011, and the regional and domestic instability. The six-month moving average of the number of construction permits (pictured below) illustrates the decline witnessed in the sector since 2011.  

The average area per transaction barely ticked down from 822.21 sqm/permit in 2014 to 815.20 sqm/permit by September of this year.

 In September alone, the number of permits stood at 1,413, a 6.92% y-o-y fall from September 2014’s level. Similarly, CAP witnessed a 10.44% yearly decline to 934,360M sqm from 1.04M sqm registered in September of last year. In terms of regions, Mount Lebanon grasped 39.84% of total permits, while South Lebanon and Nabatiye took respective shares of 18.19% and 14.79%.

 

Monthly Number of Construction Permits

Construction Permits at a Six Year Low by September

Source: Orders of Engineers in Beirut and North

 

 

 

 

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