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As months are passing by, the situation of the latter remains the same: fluctuating demand, restrained purchasing options, few new projects, stable prices and availability of the products in the old buildings.
In fact, the stability of the supply shows that the market of Beyrouth is a renewable market rather than a market of expansion. To add up, the increasing delay in housing and sales is undeniable. Nowadays, the products of the market are stocked in inventories, since buyers had been absent for several years. Due to this situation, the promoters do not seem to be in a rush to turn into the business real estate.
The stock of the old and new products available in downtown Beirut is also important. As opposed to the false propaganda, many old or newly constructed buildings always offer a large choice of possibilities. While it is obvious that the 18 months of the opposition sit-in at Riad El Solh and Debbas did not solve any of these problems, it is important to mention that many offices had not been occupied for years even since the re-opening of the Downtown in the late 1990s.
Nevertheless, the required rent is relatively stable, fluctuating around an amount of 180 to 200 dollars for 1m2 per year, for the first floor. The drawbacks of the stock are, as a matter of fact, well-know: the absence of a parking as well as the lack of functional & well-divided spaces. The problem resides in the availability of these criteria, even in the new surfaces located in modern buildings that have been inaugurated during these last two years. The rental of these products (from 300 to 350 dollars/m2 per year, for the first floor) is almost caused by the lack of the multinational corporations’ demand.
Concerning the office sale sector, the prices make the widest variation. In fact, they easily vary from 2.500 to 4.000 dollars m2 according to the location, the quality of the building, the condition of the offices and the availability of a parking. Moreover, certain products have been offered in the market for years without finding any buyers: The stock of Ras-Beirut is increasingly growing old for lack of new projects. Hamra is still suffering as well from many unoccupied offices in its unattractive buildings. There, the rentals of old or more recent products vary from 100 to 150 dollars annually for the square meter, for the first floor. On the other hand, the prices in Achrafieh go in the opposite way: the annual rentals can reach more than 250 dollars /m2, between old buildings located in the popular areas or in the modern offices located in the avenue Charles Malek. However, the offer remains limited.
Finally, it is important to note that the office market is dynamic in the periphery of Beirut, especially in Hazmieh and Sin-El-Fil. There, access is easy, rents are more attractive than those in the central districts and still appealing for small and big business. However, despite these qualities, demand is not always fulfilled since certain companies seek surfaces ranging from 1.000 to 1.500 m2 to sell or rent and cannot find what they are looking for.
RAMCO Real Estate Advisers Tel : +961 (0) 1 349910 Fax : +961 (0) 1 753573 E-mail : mail@ramcolb.com.
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