DEVELOPERS MAINTAIN POSITIVE OUTLOOK ON REAL ESTATE MARKET
Activity picks up slightly in the first nine months of 2014
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.