The construction sector is keeping up the pace in the Quebec City CMA. In the second quarter of 2013, the value of building permits reached $426.7 million, up 25.2% from the previous quarter. Serving as a barometer, this indicator suggests that work will be beginning on a number of major new projects in the region in the next three to six months.
The non-residential sector continues to be very robust this year as the value of building permits was up 95.1% in the second quarter. The commercial sector is the most active component thanks to improvements to various shopping centres, not to mention the arrival and/or expansion of various major retail chains. The institutional sector is also abuzz as several additional projects currently on the drawing board could take shape by December. In the industrial sector, the need to invest in order to stay competitive remains a concern throughout the region, despite the springtime lull.
The value of building permits in the residential sector was down 8.8% in the second quarter. This gradual decline is in line with our expectations. In terms of construction starts, 2012 was an exceptional year (6,416 units); this number is expected to gradually return to a more sustainable level of 5,000-5,500 new units in 2013.