Depressed real estate market restricted to small flats

In an analysis yesterday of the real estate market in Lebanon, An Nahar newspaper noticed that the political breakthrough in the fourth quarter of 2016 has had a limited impact on the real estate market in the country. The situation worsened given the sluggish demand for residential property in the first quarter of the present year after a remarkable surge by 17.5% in the fourth quarter of 2016, according to Byblos Bank Real Estate Demand Index. The slowness in the market, An Nahar wrote, is attributed to the government’s emphasis on increasing taxes on consumption, income and profits in the first three months of 2017, in addition to the ceaseless political bickering over a new electoral law. Expounding on the subject, An Nahar spoke to the chief economist and head of economic research and analysis department at Byblos Bank Group, Nassib Ghobril, who said that consumers’ shy confidence which started in the fourth quarter of last year and affected the real estate sector, especially that demand for housing is primarily associated with consumer confidence levels, political stability and economic activity. The newspaper noted, that despite the 5-year stalemate, prices went down by only 20-25%, as per the vice-president of the Builders Association, Atef Dagher. This is mainly because former prices were inflated and higher than their normal rate, and have now retrieved to their acceptable average rate, given that property sellers abstain from selling if their profit is not adequate, Dagher observed. And while buyers interested in the 250 + square meter apartments are hesitant, the buying and selling movement is currently restricted to small flats. Big residential units, Dagher said, are still awaiting an end to the elections law deadlock. (An Nahar, June 1, 2017)

Previous related news:
Slow real estate market in Lebanon