Construction Permits on the Rise!

[Beiruti]

Lebanon construction bucks global trends

Figures released by the Order of Engineers of Beirut and Tripoli reveal that construction permits totaled 1,299,310 square meters in the first two months of 2009, up by 1.7 percent relative to the same period of the previous year, according to Bank Audi’s Weekly Monitor.

“This increase reflects a slight acceleration in construction activity in the first two months 2009 relative to the same period of 2008,” Audi said.
Audi noted that this increase, although small, is deemed significant, as it comes at a time when construction and property markets are stagnating all across the globe, and specifically in neighboring Gulf countries.

“Moreover, one should highlight that this increase does not come within the context of a low base in the first two months of 2008, as back then, despite the political stagnation in Lebanon, contractors were launching new construction projects, trying to meet the hustle in real estate demand,” Audi said.

It added that the current construction activity is similar to or even slightly exceeds its level in a period of ballooning activity, meaning that the sector is undeterred by the global crisis, so far.

“As a matter of fact, the year 2008 saw the most vibrant construction activity in Lebanon since the beginning of the decade,” Audi said.

The new construction permits totaled 16,056,060 square meters, up by a major 77.7 percent as compared to the year 2007. Since the year 2000, the area of newly issued construction permits never exceeded 10 million, until the year 2008. More importantly, during the last quarter of the year, as construction activity slowed everywhere, it witnessed a continued revival in Lebanon. Newly issued construction permits totaled 7,726, 231 square meters in the last quarter of 2008 rising by more than three times when compared to the same quarter of 2007.

“It seems that construction activity in Lebanon was neither affected by unfavorable local political conditions in the first few months of 2008, nor by global economic downfalls in the last months of the year,” Audi said.

In the first months of 2009, construction activity is no longer witnessing hikes however, it stabilized at already high levels.

The North accounted for the majority of distributed construction permits in the first two months of 2009 with 36.5 percent of the total. It was followed by Mount Lebanon with 33.7 percent Beirut with 15.5 percent, South Lebanon with 12.9 percent, and the Bekaa with 11.0 percent.

The Daily Star

[Guy]

I noticed this. There are construction sites going strong all over Beirut. I was actually talking to my friend whose a developer in the states and he actually asked me "how is this even possible?" Lebanon seems to go its own way when it comes to worldwide economic trends

[Lebanese Cedar]

There is a lot of construction going around in Beirut, but construction in the Beirut Central District (BCD) appears to be at a slower pace than it once used to.

[Guy]

Originally Posted by Lebanese Cedar

There is a lot of construction going around in Beirut, but construction in the Beirut Central District (BCD) appears to be at a slower pace than it once used to.

I think because there isn't that much left to do until they finish the reclamation project

[Lebanese Cedar]

Originally Posted by Guy

I think because there isn't that much left to do until they finish the reclamation project

There is still quite a bit to do, everything from Martyr's Square, to the Beirut souks, to the Wadi Abou Jmeil neighborhood.

[Beiruti]

How many plots are still yet to be sold?