Construction activity showed expansion in the first month of 2016. As the latest figures released by the Orders of Engineers in Beirut and the North revealed that the number of permits rose by 16.77% year-on-year (y-o-y) to 1,135.This could partially reflect an improving sentiment in the contracting sector, which would be probably reflected in the real estate sector performance over the medium term,noting that these permits mainly remain valid between 6 and 8 years.
However, the construction area authorized by permits (CAP) contracted by a yearly 3.78% to 811,183 sqm in January this year, compared to 843,057 sqm in 2015.
As for the average area per transaction, it slightly decreased from 867.34 sqm/permit in January 2015, to 714.69 sqm/permit by January 2016. In terms of regions, Mount Lebanon grasped 37% of total permits, followed by South Lebanon and Nabatiyeh with respective shares of 19.82% and 16.39%.
Monthly Number of Construction Permits
Source: Orders of Engineers in Beirut and North