Dozens of apartments were sold in Downtown last year, but the number of sales has since eased up. (Credit; Elie Abi Hanna)
Apartment sales in Downtown Beirut were sluggish from 2018 to 2019 before picking up in 2020.
Dozens of apartments were sold last year, and most of the buyers paid in banker’s checks to get their savings out of the banking system after commercial banks began imposing informal capital controls. The situation has calmed again since then.
In the vicinity of Saint George’s Bay, the apartments continue to be among the most expensive in Beirut, and buyers are mainly Lebanese expats who are ready to break their piggy bank to buy a quality property. The prices can range from $3,500 to $5,500* per square meter, compared with $4,500 to $7,500 per square meter in 2019.
“Today the few [apartments] that are up for sale are mostly concentrated in a handful of buildings, including Beirut Terraces and 3Beirut” says Raja Makarem, the founder of Ramco Real Estate Advisers.
The latest sales in Downtown include a 587-square-meter furnished apartment located in the area surrounding Zaitunay Bay, which was just sold at more than $5,900 per square meter.
“This sale does not necessarily mean that it is the actual value,” says Walid Moussa, the president of the Real Estate Syndicate of Lebanon (REAL).
On Omar Daouk St., a few apartments await buyers in 3Beirut, designed by the architectural firm Foster + Partners. An 830-square-meter apartment located above the 10th floor is advertised at $4,819 per square meter, while a two-bedroom, 210-square-meter apartment is listed at $5,275 per square meter. Some prices have remained almost the same as in 2019.
“The sellers have a large real estate portfolio, including several apartments in Beirut. Some are ready to sell them in order to invest elsewhere, but not at a discount,” a real estate agent in Beirut says.
There are other options in Beirut Terraces, near the Phoenicia Hotel. Quality apartments’ prices range from $4,100 to $5,600, depending on the floor and sea view. In 2019, the prices ranged from $5,000 to $8,500 per square meter if paid for in banker’s checks.
“There is demand for Downtown. But similar to the other parts of Beirut, buyers are looking for good deals. Thus, there won’t be any sales unless the price is nearly 50 percent lower than that of 2019,” Moussa says.
“An apartment near Starco purchased in 2019 at $1.1 million [in banker’s checks] is on the market for $650,000. It’s too expensive to be able to attract a potential buyer,”says Joe Maatouk, the CEO of JM Properties.
Some agents believe the asking prices will adjust to this new reality over time.
For example, “a 1,400-square-meter duplex advertised at $14 million is now offered at $9.8 million. It has lost 30 percent of its value in six months,” says Tony Abou Rizk, a real estate agent.
*All dollar prices stated in this article are in terms of “fresh dollars,” or dollars that retain their full value on the parallel exchange market.
This article was originally published in French in L’Orient-Le Jour. Translation by Joelle El Khoury.
Dozens of apartments were sold last year, and most of the buyers paid in banker’s checks to get their savings out of the banking system after commercial banks began imposing informal capital controls. The situation has calmed again since then.
In the vicinity of Saint George’s Bay, the apartments...