Construction Permits Dropped to 12,559 in the First 10 Months of 2015

The number of construction permits saw an 11.76% year-on-year (y-o-y) drop to reach 12,559 by October 2015, compared to a higher level of 14,233 during the same period last year. In the same context, the construction area authorized by permits (CAP) declined by a yearly 13.72%, amounting to 10.06M sqm in the first 10 months of 2015, compared to 11.66M sqm in 2014.

Noting that permits are usually issued at least 6 months after applications are filed, the fall in construction activity can be due to the ongoing slowdown in the whole economy attributed to the slump in Foreign Direct Investments (FDIs) and the regional and domestic instability.

As for the average area per transaction, it decreased marginally from 818.90 sqm/permit in 2014, to 800.75 sqm/permit by October of this year.

Looking at October alone, the number of permits stood at 1,332, a 4.86% y-o-y fall from October 2014’s level. Similarly, CAP witnessed an 18.07% yearly decline to 904,357 sqm from 1.10M sqm registered in the same month of last year. In terms of regions, Mount Lebanon grasped 39.64% of total permits, followed by South Lebanon and Nabatiyeh with respective shares of 18.02% and 12.84%.

 

 

Monthly Number of Construction Permits

 Construction Permits Dropped to 12,559 in the First 10 Months of 2015

 Source: Orders of Engineers in Beirut and North

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