The City of Calgary records third-highest year for building permits in 2011

January 06, 2012 06:10 AM

City of Calgary building permit values for the year ending December 31, 2011, totalled $4.54 billion.

Values are up 56 per cent year-over-year ($4.54 compared to $2.91 billion in 2010), up 10 per cent
compared to the 5-year average (2007 – 2011: $4.12 billion) and up 27 per cent compared to the 10-year average (2002-2011: $3.58 billion).

“2011 marked a big shift for Calgary, a city transitioning from a time of reduced spending. Estimated construction
values are at some of the highest levels we’ve seen. Contributing factors this year are the increase in new builds over improvements, a significant source
coming from apartments and commercial segments, says David Watson, general manager, Planning, Development and Assessment.

Permits for new residential units in 2011 total 9,812 compared to 7,026 in 2010, a 40 per cent increase. Of the 9,812 units, 3,412 are for new apartments, which is a 189 per cent increase compared to the previous year.

Additionally, this year the city of Calgary experienced an increase of 190 per cent in the value of new commercial construction permits.  In 2010, the total value was $151 million compared
to $438 million in 2011. There were also significant gains in the commercial improvements segment, with a total estimated value of $240 million. This is an
increase of 45 per cent in estimated value in 2011.

 “In just one year the city has bounced back from a three-year decline in building permit values thanks in part to big gains in the commercial and apartment sectors. In general, new commercial and apartment spending is a good sign for Calgary’s economy,” says
Watson.

The city hit peak building permit levels in 2007 with $5.62 billion in estimated construction value. This was followed by three years of decline to a 5-year low of $2.91 billion in 2010.This year also saw a two-fold increase in projects valued over $10 million (44 projects in 2011 compared to 22 in 2010). Some of these projects include the airport’s International Facilities
Project ($596 million), Eight Avenue Place – West Tower ($195 million), University Residential Towers ($55 million) and Mount Royal Conservatory and
Concert Hall ($53 million).

The month of December 2011 also marked a strong ending to the year, where overall estimated values of permits doubled compared to December 2010. The month saw overall estimated values jump 105 per cent to $490 million in contrast to $239 million in the previous year.

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Building permits are a barometer of intentions in the construction industry and are not actual construction starts. 

Source: City of Calgary Development and Building Approvals