This is one of our country’s paradoxes. We are going through a political crisis that never stops dragging on. The law-and-order situation is becoming more and more fragile. Our young people are still evading to other countries. In the meantime, the real estate market shows surprising vitality. Recently, with a possible nightmarish future, we are astonished by the sector’s evolution: the increasing price, the sale of under construction apartments, and the property developers’ interests on the real estate market.

The demand on new apartments is real. In order to prove this reality, many property developers have registered numerous transactions made a few days ago. Some projects, that hadn’t sold any living unit for months, have suddenly been requested. In fact, the market has woken up since the end of this summer. For example, a project in Hamra has sold six apartments in just a few weeks.

This is also the case for any under-construction building near Sassine Street, in Achrafieh. Naturally, the Lebanese expatriates, as well as the ones living between Lebanon and abroad, are of a great number. Their interest allows the under-construction apartments’ stock to be sold. Those buyers, who are seeking a pied-à-terre no matter how harsh the country’s situation is, can represent more than 50% of a project’s sales. Local customers always seek new dwellings. Their budget is lower. Those customers mainly include young married couples and middle or high class families. The Arab nationals wait for positive signs in the situation to come back and invest in our country. In fact, the profits made in the Gulf countries, especially with the surges in petroleum prices, accentuate their desire to invest in Lebanon.

The demand’s increase is also motivated by the speculations over the eventual boost of prices in case any positive outcome is encountered in the recent political crisis. Moreover, the construction costs increase as well as the high Euro cost force the property developers to always review their prices. Some of them have not waited for our new President to do that in a surprising or even in an indecent proportions, especially that they have already ordered their raw material many months ago.

The paradox is that the same property developers who have the courage to raise their prices in a frightening way are the first ones who dare to complain about the price increase in case they want to buy new parcels to develop new projects, knowing that they are the ones who contributed to this price escalation.

As we used to mention in our last heading, a rally is taking place in the real estate market. Many intermediates and agents are doing their best to find the rare pearl. The demand is important, but good opportunities are limited in the West Beirut and Achrafieh. This infatuation excites the owners and makes them raise their prices hoping to find a “pigeon”. Many of them believe that Beirut’s prices remain very attractive compared to those of Damascus and Amman for example. If the demand is strong, the majority of investors are disappointed by the available locations and the proposed prices.