Construction activity was lackluster by April, as construction permits recorded a 6 year low since 2010 ahead of the rise in regional turbulence. Specifically, the number of real estate permits declined by 20.51% in the first four month of 2015 to 4,621, compared to 5,813 in 2014. Worth mentioning that permits are usually issued at least 6 months after applications are filed. Hence, this fall could be due to the ongoing clashes that occurred on the Syrian/Lebanese border during the month of October, in addition to real estate somewhat losing its appeal since the Arab spring. In parallel, the construction area authorized by permits (CAP) recorded a 19.22% yearly plunge by April to reach 3.79M sqm, compared to 4.69M sqm last year.
Notably, the average area per transaction slightly expanded by April from 806.52 sqm/permit in 2014 to 819.55 sqm/permit in 2015.
Furthermore, the number of permits in April alone tallied to 1,284, a 12.41% y-o-y drop from April’s 2014 level. CAP also revealed a 17.23% yearly slump to 1.05M sqm from 1.27M sqm recorded in April of last year. Worth noting, construction activity remained concentrated in Mount Lebanon, South Lebanon, and Nabatiye with 541 permits (42.13% of the total), 211 permits (16.43% of the total) and 148 permits (11.53% of the total), respectively.
Number of Construction Permits by April
Source: Orders of Engineers in Beirut and North