The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The value of new construction permits issued in the 2022 third quarter fell by almost 20 percent year-over-year due to a significant drop-off in new commercial projects, it was disclosed yesterday.

The Bahamas National Statistical Institute, in unveiling building construction data for the three months to end-September 2022, revealed that increased residential developments helped mitigate some of the year-over-year decline in higher value corporate projects.

Speaking to permits, which are an indicator of future industry activity, its report said: “The [total] number of new construction permits Issued in the third quarter 2022 (424) was higher than in third quarter 2021 (380) by 44 projects or 12 percent. Conversely, the value of permits Issued over this period decreased from $167m in 2021 to $135m in 2022.

“The main reason for this decrease was a drop of 59 percent in the commercial/industrial sector of $47m, which was mitigated by increases in the private/residential sector of $11m and the public sector of $4m. The third quarter 2022 permits value was shared across the islands, with New Providence representing 76 percent, Grand Bahama 20 percent and the remaining Family Islands 4 percent.”

For New Providence, the value of new construction permits issued during the 2022 third quarter fell by 28.8 percent or $41.5m year-over-year, dropping from $144.377m in the year-before period to $102.8m. However, the value of new construction permits issued on Grand Bahama more than doubled, rising from $12.837m in the 2021 third quarter to $26.69m last year. Family Island new construction permits nearly halved in value, going from $10.091m to $5.762m.

As for actual construction work, the Institute said: “The number of new construction starts [across the] Bahamas decreased by 17 when comparing the third quarter 2021 (150) and third quarter 2022 (133). During this same period, however, the value of construction starts increased by $35m or 74 percent.

“This increase in value was led by the private/residential sector and the public sector, with increases of $36m and $5,000 respectively. Contrarily, the commercial/industrial sector decreased by $645,000 or 4 percent. New Providence represented 76 percent, and Grand Bahama 24 percent, of the recorded number of new construction starts in the third quarter 2022.”

Residential construction starts were flat year-over-year at 119 for the 2022 third quarter, but commercial related projects declined year-over-year from 31 in 2021 to just 13 - a fall of 58 percent. 

“The total Bahamas number of construction completions in the third quarter 2022 (165) showed a decrease of six projects when compared with the same period in 2021 (171),” the Institute said. “The value of construction completions, however, increased by approximately $106m or 176 percent.

“There was an increase in the commercial/industrial sector of approximately $114m leading this overall increase in value. New Providence’s commercial/industrial sector construction completions value increased from $11m to $126m over this same period.”

The Institute added that its report and data were compiled using information obtained from the Ministry of Works (New Providence and Grand Bahama), the Department of Local Government, Family Island administrators and the Grand Bahama Port Authority (GBPA).