Ac­tiv­ity picks up slightly in the first nine months of 2014

Ekaruna - - Cover Story -

De­spite spo­radic se­cu­rity in­ci­dents in the coun­try, the Le­banese real es­tate mar­ket posted a mod­est in­crease in the to­tal num­ber of trans­ac­tions in the first three quar­ters of 2014, fol­low­ing two years of con­sec­u­tive de­cline.

Ac­cord­ing to fig­ures re­leased by Le­banon’s land reg­istry, the to­tal num­ber of real es­tate sales trans­ac­tions rose 4.2 per­cent to 51,975 in the first nine months of 2014, com­pared to 49,876 deals in the same pe­riod of 2013. The ag­gre­gate value of trans­ac­tions rose year on year by 10.6 per­cent from $6 bil­lion to $6.7 bil­lion.

This mod­est year-on-year in­crease was fu­elled pri­mar­ily by the im­proved con­sumer con­fi­dence and in­vestor sen­ti­ment that fol­lowed the for­ma­tion of a na­tional unity gov­ern­ment in the first quar­ter of 2014. “Each time we see a slight im­prove­ment in the se­cu­rity and po­lit­i­cal sit­u­a­tion, con­sumers gain con­fi­dence and the mar­ket picks up mo­men­tum,” says Dagher. Hovig Yes­sayan, Chief Ex­ec­u­tive Of­fi­cer (CEO) of Yes­sayan De­vel­op­ments, states that ac­tiv­ity in the real es­tate mar­ket picked up dur­ing the first quar­ter of the year be­fore go­ing through a stag­na­tion phase. “But dur­ing the past cou­ple months, ac­tiv­ity gained mo­men­tum again,” he adds.

Since the Syr­ian armed con­flict broke out in 2011, its grad­ual spillover into Le­banon has led to a 9.2 per­cent drop in the num­ber of real es­tate trans­ac­tions in the first nine months of 2012, fol­lowed by a 5.2 per­cent de­cline in the same pe­riod of 2013.

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