675 building permits issued in February 2019

Building and construction activities in Qatar gained momentum in the month of February 2019 compared to the corresponding month last year. Some 675 building permits were issued in February 2019, showing a year-on-year growth of 5.5 percent compared to 640 permits issued in February 2018, latest official data show.

This annual surge in the construction activities reaffirms the resilience of the Qatari economy in general and the real estate sector in particular, despite the challenging environment.

Al Rayyan Municipality continued to remain on top in terms of the number of building permits issued. The municipality, which is witnessing major construction and developmental works, received 192 permits (over 28 percent of the total), showing a year-on-year l growth of over 41 percent, according to the monthly statistics bulletin for March released by the Ministry of Development Planning and Statistics.

Doha Municipality stood at the second position bagging 149 (22 percent) building permits in February, up 35.5 percent against 110 permits issued in the same month last year. Al Khor and Al Thakhira municipalities, with 51 permits issued in the moth, witnessed the highest growth, both, year-on-year (41.7 percent) as well as monthly basis (21.4 percent).

When compared on monthly basis, the total number of building permits issued in February across all the municipalities shown a decline of 14.6 percent compared to 790 new building permits issued in January 2019. However, if compared with the December 2018 (677 permits), it reflects that the contraction activities in Qatar are stable.

Data related to building permits and building completion are of particular importance as they are considered indicators for the performance of the construction sector which in turn occupies a significant position in the national economy.

Construction is one of the key sectors of any economy as it drives demand for construction materials such as steel, cement and other goods, especially items related to the mechanical, electric and plumping sector.

The real estate market, despite the ongoing unjust blockade and other challenges, remained stable in 2018. In fact the market witnessed some recovery over the last financial year.

The Qatar Central Bank’s (QCB) Real Estate Price Index, which had declined to 245.21 points in January 2018, eventually increased to 248.22 points in November before ending the year at 246.54 points in December 2018. The QCB index for the first quarter of 2019 is expected to be released soon.

In terms of type of permits issued, data indicates that the new building permits (residential and nonresidential) constitutes 54 percent (367 permits) of the total building permits issued during the month of February 2019, while the percentage of additions permits constituted 43 percent (288 permits), and finally fencing permits with 3 percent (20 permits).

Within the new residential buildings permits, villas top the list, accounting for 67 percent (198 permits) of all new residential buildings permits, followed by dwellings of housing loans permits by 21 percent (62) and apartments buildings by 7 percent (20).

Commercial buildings were found to be in the forefront of non-residential buildings permits with 47 percent (34 permits), followed by industrial buildings such as workshops and factories with 22 percent (16 permits), then governmental buildings with 21 percent (15 permits).

With regard to Building Completion Certificates, 333 certificates were issued in February 2019 against 352 in the previous month (January 2019). When analysed in terms of the types of buildings, villas’ top the list, accounting for 66 percent (152 certificates) of all new residential buildings completion certificates, followed by dwellings of housing loans certificates by 29 percent (66 certificates) and apartments buildings by 4 percent (9). On the other hand, industrial buildings such as workshops and factories were found to be in the forefront of non-residential buildings completion certificates with 32 percent (8), followed by commercial buildings with 28 percent (7), then public buildings with 24 percent (6).

Source from: The Peninsula