The number of building licenses issued in the Kingdom during the first half of 2026 rose by 3.2% year-on-year, while the licensed area for residential purposes recorded a 10% increase, according to data from the Department of Statistics (DoS).
Rise in the Number of Building Licenses
According to the DoS report on construction activity and building licenses, the number of licenses issued during the first six months of the year reached 12,070, compared to 11,700 during the same period in 2025.
The total licensed building area reached 4.87 million square meters, compared to 4.77 million square meters during the first half of last year, marking a 2% increase.
Growth in Residential Areas
The licensed area for residential purposes increased to approximately 4.03 million square meters, compared to 3.66 million square meters during the same period in 2025—a 10% rise.
In contrast, the licensed area for non-residential purposes dropped by 24% to around 846 thousand square meters, down from 1.11 million square meters in the first half of last year.
Residential areas accounted for 82.6% of the total licensed area, compared to 17.4% for non-residential purposes.
Central Region Accounts for 73% of Total Licensed Area
Regionally, the Central Region captured 73% of the total licensed building area, up by 1.1 percentage points compared to the same period in 2025. The Northern Region held a 21% share (up by 1 percentage point), while the Southern Region stood at 6% (down by 2.1 percentage points).
The Capital Leads in Residential Areas
By governorate, the Capital registered the highest share of newly licensed residential areas at 15.7%, while Zarqa recorded the lowest at 2.7%.
The per capita share of newly licensed residential space reached 0.337 square meters nationwide. The Capital ranked first with 0.490 square meters per capita, followed by Balqa with 0.440 square meters, while Zarqa registered the lowest share at 0.083 square meters per capita.
Decline in New Buildings and Additions
New buildings and additions to existing structures represented 57.5% of the total licensed building area in the first half of the year, compared to 42.5% for existing buildings.
The area for new buildings and additions reached approximately 2.80 million square meters, down from 3.03 million square meters during the same period in 2025—a decrease of 7.6%.
Building Permits as an Indicator of Construction Activity
Building permit data provides key indicators regarding construction activity in the Kingdom, including the number of licenses, licensed areas, and types of land use by governorate. This aids planners, policymakers, and decision-makers in tracking the construction sector’s momentum.
Building permit metrics reflect the actual reality of construction activity because obtaining a permit typically implies the actual commencement of construction. Conversely, design contracts and engineering blueprints relied upon by other entities represent future plans and licensing stages that may not ultimately be completed.
