According to the data from the Orders of Engineers in Beirut and Tripoli, the total construction permits witnessed a year-on-year (YOY) remarkable increase of 58.10% to reach 13,347 permits by October 2021. Notably, the Construction Area Authorized by Permits (CAP) soared by an annual 88.41% to 6,370,671 square meters (sqm), mainly reflecting the high interest of investors in investing in real tangible assets.
Compared to the same period last year, construction activity witnessed a prominent increase regionally. Across the governorates, Mount Lebanon, grasped 39.37% of the total permits, and accounted for 5,155 permits compared to 3,137 by October 2020. However, for the South, it constituted 28.79% of the total permits, its respective number of permits reached 3,770 permits comparing to 2,451 permits same period last year. In Nabatieh which holds 19.89% of the total permits, its share accounted for 2,605 by October 2021. In Bekaa, 1,213 construction permits were issued by October 2021 up from 749 in the same period last year, while in Beirut only 239 construction permits were issued by October 2021.
Overall, the number of construction permits is largely considered a macroeconomic indicator as it typically increases in time of economic expansion. However, in Lebanon the building permits industry is rather reflecting the large desire of the Lebanese to hedge their deposits in buildings and houses. Yet, Beirut occupied a negative trend in construction permits which highlights the need for a government plan to revive the capital of Lebanon and implement policies to attract foreign investors.
Number of Construction Permits by October 2021
Source: Orders of Engineers in Beirut & Tripoli