Lebanon Real Estate Newsletter

Vol. 3, Issue 7 - September, 2007
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The Real Estate Sector still riding the high waves



The repeated advice to our clients remains unchanged – Buy now while you can because the real estate prices in Lebanon – irrespective of the political and economical situations – would keep increasing at an average rate of 15-25% and more annually in the demanded areas of Beirut, suburbs and mountains

For instance, the average price in the year 2003 for a new apartment in Achrafieh used to vary between US$950/m2 and US$1150/m2 – whilst nowadays in 2007 the prices are ranging between US$1750/m2 and US$2200/m2 and more.

Other additional factors that would support the new increments in prices are the construction prices (25%-30%) due to high increase in building materials; the stronger Euro compared to Dollar because most materials are of European origin; and the increase in the prices of plots where in some regions in Beirut, and suburbs the prices have reached a record high of 50% - 100% in the last 2 years.

Still construction sites are growing like mushrooms wherever you look around you, but the trend is for smaller and medium size apartments (160m2 – 200m2 -250m2) particularly designed to accommodate well to do Lebanese families and mostly expatriates whose income would permit them to acquire such size apartments in good locations with adequate quality finishing, thus creating high quality living space close to downtown, to universities, hospitals, entertainment and actions.

The high life-style apartments designed for wealthy, foreign and oil-rich residents consisting of large-size apartments starting from 450m2 – 800m2 are temporarily slowed down after July 2006 war but the trend might come back as soon as the security and political situations would be improved. But when?? The major "QUESTION" drawn on the lips of each Lebanese citizen and all neighbors and friends who cherish and miss the normal Lebanese way of life, the natural hospitality, peace, tolerance, joy and tranquility. For God's sake!!! How long this Lebanese dilemma going to last? The immediate and straight forward reply that comes to our mind is that: as long as our political groups are siding and involving themselves into the regional and international powers conflict thus using our territory as a battlefield and unless we free ourselves from their grips and unite our forces to build our Lebanon on democratic principles putting in front of our eyes the interest of our country:
"Lebanon comes First"
The crisis is liable to continue...

Throughout our history, our fate in Lebanon is to accompany, co-exist and survive with all the crisis of the region.
Since our 1st Independence in 1943 and before we were able to build the structure of our political system – we were faced and dragged by Israeli- Palestinian problem in 1948 and we are still enduring its repercussions.

With the withdrawal of the Syrian troops in April 26, 2005 again we hoped we could restructure our 2nd Independence on modern and solid democratic principles. Immediately thereafter we were encountered by additional series of assassinations, threats, terrorist acts, and International conflicts on our territory that triggered the disruption and the normal course of our progress towards stability, economic prosperity, Integrity of our territory and peaceful joyful living.

The procedure to achieve this goal is not going to be easy – but with determination, perseverance, wisdom and struggle for truth, true implementation of Taef Constitution, tolerance and understanding - we can enhance our status towards a democratic state. To come back to our real estate topic, it is always worthwhile mentioning that for comparison reasons between Lebanon and other European countries for similar locations, quality finishing and materials the prices in Lebanon are still more affordable – therefore it is quite obvious and normal that whenever a peaceful political settlement is reached in Lebanon, the prices of real estate will be soaring and skyrocketing without much exaggeration.


Hayek Group
Beirut, Lebanon
 

 

 

 

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