8,981 planning applications presented in COVID year, down by 10%

Demand for new planning permits took a relatively small dip during the pandemic year but requests for new permits remain higher than in every year between 2011 and 2016.

Despite the COVID-19 pandemic, in 2020 the number of permits submitted remained more than four times higher the number of applications presented in 2011, a year also dominated by an international economic crisis triggered by the collapse of financial markets.

The number of planning applications has dropped by 10 percent from 10,003 in 2019 to 8,981 in 2020. Zoning applications meant to set future parameters for future developments have declined by a more substantial 31% from 120 in 2019 to 82 in 2020.

But statistics indicate that the decline in planning applications predated COVID, with the number of planning permits already declining by 13% from 11,480 in 2018 to 10,003 in 2019. The number of zoning applications had also declined by 25% from 161 in 2018 to 120 in 2019.

The number of planning and zoning applications only offers an indication of the state of the construction industry. This is because planning permits are submitted for a wide range of works, ranging from new residential blocks to agricultural reservoirs.

Moreover, not all permits are approved and the number of planning applications does not result in the immediate commencement of works. In fact, permits remain valid for five years after being issued and owners may bide for time to commence works. But the number of planning applications does offer an indication of confidence in the property market and willingness of owners and developers to take risks.

Stakeholders in the sector confirmed that the construction sector has remained resilient during the pandemic, albeit suffering from what is described as a ‘cooling-off’ period following a peak in 2018.

The number of planning permits being issued also raises issues of sustainability especially when one considers that the PA has received a staggering 49,556 permit applications in the past five years – nearly triple the amount of permit applications presented in the previous five years.

The upsurge in planning applications also reflected the more liberal planning policies approved since 2013 which included design guidelines which practically allowed five-storey developments within development zones and outside urban conservation areas.