According to the data from the Orders of Engineers in Beirut and Tripoli, the total construction permits witnessed a year-on-year (YOY) remarkable decrease of 51.05% to reach 5,061 permits by half 2023. Similarly, the Construction Area Authorized by Permits (CAP) plunged by an annual 63.44% to 2,038,409 square meters (sqm), mainly driven by public institution’s strike, decline of interests towards investing in real tangible assets and less overall income.
Compared to the same period last year, construction activity witnessed a significant decrease regionally. Across the governorates, Mount Lebanon, grasped 38.79% of the total permits, and accounted for 1,963 permits by end of June 2023 compared to 4,138 previous years. However, for the South, it constituted 28.16% of the total permits, its respective number of permits reached 1,425 permits compared to 2,955 permits same period last year. In Nabatieh which holds 18.63% of the total permits, its share accounted for 943 by June 2023. In Bekaa, 455 construction permits were issued by half of 2023 down from 914 in the same period last year, while in Beirut only 151 construction permits were issued by June 2023. The decrease is more remarkable given the lack of bank lending.
Overall, the number of construction permits is largely considered a macroeconomic indicator as it typically increases in time of economic expansion. However, it does not seem to be the case for Lebanon as we can certainly admit the existence of better economic circumstances currently, unless its effect takes place with a lag.
Number of Construction Permits by June 2023
Source: Orders of Engineers in Beirut & Tripoli
This article is a research document that is owned and published by Blominvest Bank SAL.
No material from this publication may be modified, copied, reproduced, repackaged, republished, circulated, transmitted or redistributed directly or indirectly, in whole or in any part, without the prior written authorization of Blominvest Bank SAL.
The information and opinions contained in this document have been compiled from or arrived at in good faith from sources deemed reliable. Neither Blominvest Bank SAL, nor any of its subsidiaries or affiliates or parent company will make any representation or warranty to the accuracy or completeness of the information contained herein.
Neither the information nor any opinion expressed in this research article constitutes an offer or a recommendation to buy or sell any assets or securities, or to provide investment advice.
This research article is prepared for general circulation and is circulated for general information only.