Lebanon saw a cumulative 30.88% year-on-year (YoY) drop in construction permits to 5,511 by August 2025. This decline reflects the persistence of Lebanon’s broader political and economic instability, which continued to weigh heavily on investor and household confidence. Heightened political tensions surrounding the government’s disarmament plan for Hezbollah, the subsequent cabinet rift, and deadly security incidents that further undermined sentiment. In addition, the continued fallout of the Israel-Lebanon war left many hesitant to initiate new construction projects. Despite the drop in the number of permits, the Cumulative Construction Area Authorized by Permits (CAP) rose by 13.22% to 4,948,472 square meters (sqm) by August 2025, likely reflecting a shift toward larger group projects rather than smaller, individual ones.
Moreover, construction activity declined across all governorates compared to the previous year, with the steepest fall in Beirut (-82.52%) followed by Bekaa (-50.86%) and Mt. Lebanon (-34.91%). The table below provides a detailed breakdown by governorate:
Number of Construction Permits
Source: Orders of Engineers in Beirut & Tripoli
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