Building plans surge
Applications rise nearly 50 per cent despite construction slowdown
BUILDING and planning applications submitted to Jamaica’s municipal corporations (MCs) jumped to an estimated $280.9 billion in 2025, pointing to a larger development pipeline even as construction activity weakened late in the year.
The latest Economic and Social Survey Jamaica (ESSJ), published by the Planning Institute of Jamaica (PIOJ), showed that the value of applications submitted to MCs increased by approximately 49.7 per cent when compared with 2024.
The increase pointed to a sizeable pipeline of proposed residential, commercial and industrial projects, even as the construction sector faced headwinds following the passage of Hurricane Melissa last October. Construction output contracted by 2.5 per cent in the October-December quarter after previously expanding by 5.5 per cent in July-September, 1.7 per cent in April-June, and 1.4 per cent in January-March. The downturn, which extended into the first quarter of 2026, saw the sector decline by a further 1.4 per cent driven by weaker activity in both building construction and other construction components.
Despite the slowdown in actual construction activity during the latter part of 2025, the development pipeline remained strong. The ESSJ reported that applications approved during the year carried an estimated value of $201.7 billion, while applications awaiting approval at year-end were valued at $188.3 billion, pointing to a sizeable pool of proposed and approved projects that could support future construction activity.
“Municipal corporations received a total of 4,609 building/planning applications in nine of the 10 development categories. These categories are residential, commercial, mixed-use, industrial, institutional, resort, cellular tower, recreational, and other,” the report noted.
Residential developments, which continued to dominate the market, accounted for 3,989 of the building and planning applications received by municipal corporations, or 86.4 per cent of the total. Commercial developments also remained active, with more than half of the 205 commercial applications involving projects larger than 300 square metres.
“The largest number of applications was received by St Catherine MC, followed by Kingston and St Andrew MC, accounting for 16.7 per cent and 13.7 per cent, respectively. Hanover MC continued to receive the lowest number of applications accounting for 2 per cent of the total,” the report further noted.
According to the annual document, approvals also remained strong during the year, with MCs approving 3,536 applications, representing an overall approval rate of 76.7 per cent. About 80.5 per cent of approvals were completed within the targeted 90-day processing period.
Trelawny MC recorded the strongest performance, approving 94 per cent of applications within 90 days, followed by St Elizabeth at 92 per cent.
“Of the total applications received, six were refused, 34 fewer than 2024. Kingston and St Andrew MC recorded three refused applications while the Clarendon, Westmoreland, and Portland MCs each had one refusal,” the document further outlined, while noting that the year closed with 2112 applications still under review — 55.7 per cent of which exceeded the 90-day processing timeline.
Regarding subdivision activity, the ESSJ said MCs received approximately 387 of these applications, representing a 14.6 per cent decline from the previous year.
In 2025, the estimated value of subdivision applications remained relatively stable at $2.5 billion, while approved subdivisions were valued at $1.7 billion. Applications still awaiting decisions, however, totalled $13.5 billion in estimated value at year-end. Most of these subdivision proposals involved developments of nine lots or fewer, with Manchester receiving the largest share of applications.
The report, also highlighting continued improvements in environmental and development approvals processed by the National Environment and Planning Agency (NEPA), said the entity received 2,430 development applications during 2025, slightly above the previous year, when it processed 2,394 applications.
Overall processing efficiency remained high, with NEPA achieving a 98.5 per cent processing rate. Applications processed within the 90-day and 60-day targets increased by 26.8 per cent to 1,818 and by 35.7 per cent to 1,546, respectively.
Approvals processed during the year rose by 59.5 per cent to 2,492, with increases recorded across all five application categories, reflecting decisions made in 2025 on applications submitted both during the year and before.
“Environmental permit approvals accounted for 31.5 per cent of the total, while beach licence approvals registered the largest percentage increase, rising fivefold during the year,” the report noted.
According to ESSJ data, building and planning applications received by MCs grew by almost 50 per cent to an estimated value of $280.9 billion in 2025.