Building boom
Billions in investment in construction of small residential developments
A rebuilding boom is currently underway in the aftermath of last year’s Hurricane Melissa, especially for residential and small properties, as seen by the number of building applications being processed by municipal corporations.
“This level of activity shows that people are working quickly to rebuild. Critically also, the analysis reveals that more people are applying for building permits to ensure the structural integrity of their projects,” said Minister of Local Government and Community Development Desmond McKenzie.
He was speaking Wednesday during his contribution to the sectoral debate in the House of Representatives.
McKenzie said the most significant increase of 11 per cent was in building applications for small residential developments under 300 square metres in size.
“This signals strong activity to rebuild houses, small businesses and factories,” he said, while sharing that 71 per cent of the applications were approved within 90 days and have an investment value of $36.1 billion.
McKenzie also told the Parliament that between January and March this year, 1,377 applications valued at $68.8 billion were submitted. “This is highly encouraging and positive news. The records show that this number of applications far exceeds total applications received for all quarters, dating back to the April to June quarter of 2023,” he said.
The local government minister highlighted that in the first nine months before Hurricane Melissa hit Jamaica in October, there was significant construction activity as well as a significant number of building applications. He pointed out that over 3,700 applications were submitted, representing an 11 per cent increase with a valuation of $46.1 billion. This was an overall increase in the investment value compared to the same period in 2024.
Of note is that 81 per cent of those applications were approved within the benchmark period of 90 days. For this same period, the number of approvals was valued at $164.2 billion.
Speaking of the construction boom pre-Melissa, McKenzie said it not only demonstrated the critical expansion of the built environment, but, “when compared to the development applications and approvals figures after Melissa, they stand as an important testament to the hard work of the local authorities and agencies such as the Jamaica Fire Brigade, to push the country through the recovery phase and into the reconstruction phase”.
He boasted that despite the loss and damage to municipal buildings in at least four parishes, the approval rates were only marginally affected, with 78 per cent of post-Hurricane Melissa applications being approved within the 90-day timeline.
According to McKenzie, the continued acceleration of the development approvals process is critical to the success of the reconstruction phase.
He said the process was also tied to the duties of the municipal corporations as local building authorities, and to the improved enforcement of building standards through the revised building code, which will be rolled out during the financial year. He pointed out that a critical feature of the new code is that buildings are to be constructed to withstand Category 5 hurricanes.
“There will also be stronger enforcement powers for municipal corporations, mandatory compliance checks, and stricter penalties for illegal construction in high-risk zones,” McKenzie told the Parliament.
Additionally, he said the enforcement capacity of the local authorities will be strengthened, as the Ministry of Finance has given approval for a revised establishment structure for the corporations, which will facilitate the employment of more building officers.
“I want to emphasise that the reconstruction phase is not designed to restore what has been lost. It is to replace lost infrastructure with vastly modern, climate-smart and resilient structures that dramatically improve the lives of our citizens,” McKenzie said.
MCKENZIE…this level of activity shows that people are working quickly to rebuild.