Building permit values jump in Calgary

Calgary experienced a big jump in building permit values in 2011, according to city figures released on Friday.

Values are up 56 per cent over 2010, reaching $4.54 billion.

At the height of the last economic boom in 2007, Calgary building permit levels peaked with $5.62 billion in estimated construction value.

That record was followed by three years of decline to a five-year low of $2.91 billion in 2010.

"2011 marked a big shift for Calgary, a city transitioning from a time of reduced spending. Estimated construction values are at some of the highest levels weve seen," said David Watson, the citys general manager of planning, development and assessment.

New apartments and commercial space account for a significant portion of the increase, he added.

There was a 190-per cent spike in the value of new commercial construction permitsfrom $151 million in 2010 up to $438 million in 2011.

There was also a big increase in projects valued over $10 million, from 22 in 2010 to 44 in 2011.

The jump is in part due to major projects such as the $596-million airport expansion and the $195-million Eight Avenue Place west tower.

The value of new residential permits rose by 40 per cent in 2011. Out of about 9,800 units, more than 3,400 are in new apartment projects, the city said.

"In just one year the city has bounced back from a three-year decline in building permit values thanks in part to big gains in the commercial and apartment sectors. In general, new commercial and apartment spending is a good sign for Calgarys economy," said Watson.