The real estate market is currently dominated by a large stock of unsold properties which has accumulated over the past period. In fact, this has impacted negatively on the overall investment climate, leading to a decline in the number of construction permits and investment projects in all governorates.
According to the Orders of Engineers in Beirut and Tripoli, the number of construction permits declined by an annual 15.74% to settle at 11,795 permits by October 2018. In parallel, The Construction Area Authorized by Permits (CAP) also fell by an annual 24.66% to stand at 7.75M square meters (sqm), which may indicate investors’ preference for meeting the new trends in demand by the Lebanese citizens. They are focusing on more compact housing units, and even office units.
In a regional breakdown, Mount Lebanon grasped the largest share of permits issued (37.84% of total permits), with 4,455 construction permits issued by October 2018, down by 9.45% y-o-y. The South of Lebanon (grasping 19.84 % of total), witnessed a yearly decline of 5.62% in the number of construction permits, with 2,336 allocated permits over the same period. In Nabatiyeh (constituting 13.28 % of total issued permits), 1,563 permits were granted by October 2018, down 15.24% compared to the same period last year. Moreover, in the Bekaa (9.45 % of total permits), the number of construction permits decreased by an annual 13.25% to reach 1,113 permits. Similarly, in Beirut (4.79 % of total), the number of construction permits contracted by 6.47% y-o-y to stand at 564 permits by October 2018.
Number of Construction Permits by October
Source: Orders of Engineers in Beirut & Tripoli