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Slow real estate market in Lebanon
9-5-2017
An Nahar newspaper drew attention today to a slowdown in the real estate market despite the relatively stable conditions, due mainly to the persisting political tension. An Nahar stressed that sluggishness in the industry is visible in new construction projects, and in the slowdown in projects under construction. The reason, the newspaper wrote, is a decline in the number of potential investors. On the subject, An Nahar spoke to Marun Helu, Head of Contractors, who pointed to the waning interest of most of the Lebanese buyers to purchase apartments under construction for lack of trust in developers. Helu said the Lebanese prefer to pay for finished ready-to-live-in-flats, added to it the absence of buyers from Arab countries, as well as Lebanese expatriates in the Arab Gulf and Africa. Helu also referred to various internal factors that negatively affect an already depressed real estate market. These include the worrying financial situation of public finances, lack of infrastructure development and the absence of growth in national economy, factors which affected real estate prices that fell by 20% to 30%. According to real estate specialist, Raja Makarem, the future of the industry is far from promising, with limited sales transactions and a handful of few under-construction projects, hoping that a political breakthrough will resolve the present crisis. In its analysis, An Nahar said the real estate market has entered a period of depression since 2015, pointing to a regression in construction of residential areas in Beirut, where the number of unsold meters (of finished and unfinished apartments ) stood at 2 million and 200 thousand square meters for areas worth USD 3,000. A recent office market study by Ramco has shown a 2% drop in inventory of offices under construction in 2017 compared to 2015, and a drop in prices and rate of sales in completed projects. (An Nahar, May 9, 2017)
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- العربية
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