The number of construction permits experienced a yearly plunge of 14.30% to reach its lowest level in 6 years at 8,652 by July 2015, compared to a higher level of 10,096 in 2014. In this context, the construction area authorized by permits (CAP) registered an 18.91% year-on-year (y-o-y) drop reaching 6.87M sqm in the first 7 months of the year, compared to 8.48M sqm last year.
Noting that permits are usually issued at least 6 months after applications are filed, the fall in construction activity, as illustrated by the six-month moving average of the number of construction permits, initiated after 2011 following the Arab spring and the Syrian unrest. In addition to that, construction permits might have taken a big hit in the past year to reach this lowly level, as there is political uncertainty on the local front.
The average area per transaction dropped by July 2015, from 839.57 sqm/permit in 2014 to 794.48 sqm/permit by July of this year.
In July alone, the number of permits stood at 1,265, a 3.88% y-o-y down tick from July 2014’s level. CAP also witnessed a 15.50% yearly plunge to 956,237 sqm from 1.13M sqm registered in July of last year. In terms of regions, Mount Lebanon grasped 44.27% of total permits, while South Lebanon and Nabatiye took respective shares of 15.10% and 12.33%.
Monthly Number of Construction Permits
Source: Orders of Engineers in Beirut and North