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Water & Wastewater
November 24, 2008
By the Numbers
Number and value of Calgary building permits tumble sharply
Calgary experienced a significant decline in the number of building permits and their total value so far this year.
The City of Calgary reported that it received 19 per cent fewer building permit applications between Jan. 1 and Oct. 31, 2008, compared to the same period in 2007.
The number of applications received in the first ten months of 2008 was 12,948 versus 15,819 in 2007.
Overall construction values are down by 27 percent in the first ten months of 2008, dropping to $3.6 billion from $4.9 billion during the same period in 2007.
“Last year, the combined value of two projects alone – The Bow and Eighth Avenue Place – was $965 million,” said David Watson, general manager of planning, development & assessment with the City of Calgary.
“By comparison, the two largest projects this year – the Glenmore Water Treatment Plant upgrades and a new athletic and ice complex at Canada Olympic Park – total $229 million.”
The decline in permits indicates a shift toward smaller projects, which require as much or in some cases more work for the department in terms of review and inspections.
“Despite a clear slowdown in the number of new large residential and commercial projects, there is still a significant volume of construction activity taking place in Calgary,” said Watson.
“While projects such as The Bow and Eighth Avenue Place are still underway, we continue to receive applications for new permitted work, particularly in the area of improvements and other smaller projects. As well, we are continuing to see a good level of new activity in the industrial sector.”
New projects in the industrial sector are up 251 per cent in the first ten months of the year to $200 million.
Commercial values are down 18 per cent to $2.2 billion.
The value of residential building permit applications is down 39 per cent to $3.6 billion, representing a total of 6,136 new residential dwelling units compared to 11,560 in 2007.
However, commercial improvements are up 34 per cent to $643 million.
According to a recently released report by Statistics Canada, the value of building permits in the Calgary region declined by 13.7 per cent in September to $271.9 million from $315 million in August.
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