Despite facing several headwinds due to coronavirus pandemic outbreak, Qatar’s construction sector has staged a strong bounce back in 2021. The building permits issuances have risen sharply during the last quarter of 2021, demonstrating solid recovery in the construction sector. As many as 9,500 building permits were issued during last year.
Building permits data assumes significance for measuring the economic expansion in an economy. The number of building permits issuance in the country is one of the important indicators of economic activity as it signals expansion or contraction in the construction sector. Industry watchers keep a close tab on the trend in building permits as any increase in the issuance points to recovery in the construction sector.
The number of building permits issuance increased by around 15 percent in the fourth quarter compared to the third quarter.
During the fourth quarter of last year, which includes October, November and December, 2,159 building permits were issued compared to 1,894 building permits issued in the third quarter, according to the data released by the Planning and Statistics Authority (PSA).
Building permits and building completion certificates data is considered an indicator for the performance of the construction sector which in turn occupies a significant position in the national economy.
January was the most active month for the construction sector during last year as highest number of building permits were issued during this month.
Over 1,300 building permits were issued during the first month of last year. During the second quarter, 1,580 building permits were issued. The issuance was less due to the COVID-19 outbreak. The first quarter was a busy time as 3,870 building permits were issued.
The first half of last year saw subdued economic activities due to COVID-19 pandemic, which broke out in 2020 and continued to cast its shadow on the first and second quarter of the year.
However, the situation begun to change from start of the second half the year as cases of infection started showing declining trend.
As the rate of vaccination increased, economic activities in the country also increased. Encouraged by falling cases, companies also boosted their expansion plans which led to more buying and selling assets in the country.
The current year is expected to be good period for the construction sector as Qatar’s economy is expected to witness a sharp recovery in 2022. FIFA World Cup Qatar and other mega events lined up in the coming months will drive the economic growth in the country which will also benefit construction sector.
