Lebanon Businessnews News

InfoPro real estate indices
show more supply, lower prices
Small units most in demand
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Prices of available apartments for sale have dropped 18 percent in the past five years, according to the recently updated InfoPro Price Index. Its Inventory Index also revealed around half of apartments in new buildings is still for sale.

The Residential Real Estate Price Index and Residential Real Estate Inventory Index are primary indicators of the housing market’s health. The indices – launched for the first time six months ago and recently updated again – track price evolution and the inventory of apartments across Administrative Beirut, the suburbs, and the main urban areas of the Metn, Baabda, Kesrouan, and Aley cazas.

The Price Index tracks the asking price and not the actual sale price of apartment units. The Inventory Index tracks the total number of available new apartment units that are for sale.

The year 2012 is used as the base year by the indices. A nominal value of 100 was assigned for the beginning of that year. Both indexes are processed at Infopro’s Research Department in extensive details. Figures are available by caza, city, street, neighborhood, and apartment size.

According to the Inventory Index, small units measuring under 150 square meters (m2) are demanded the most. The stagnating sales of large units are recently showing signs of life due to the good deals on offer.

The price index reached the 81.5 mark in the first half of 2017, from 100 as a reference value set in 2012. The inventory index recorded 218 in the same period, from the 100 reference value in 2012. This means that the number of apartments available for sale has more than doubled in five years.

The average prices for Beirut dropped almost 20 percent, to $3,150 per m2, compared to the base year.

“Even when such discounts are made, clients are still hesitant to buy,” said Antoine Abu Rizk, a broker specialized in Beirut.

More than 60 percent of total sold apartments in the caza have sizes less than 220 m2.

Apartments are sold on average for $1,890 per m2 in Baabda, which witnessed a 17 percent price reduction. Kesrouan is a bit less expensive, with unit prices averaging $1,730. The stock of apartments available for sale is one of the lowest among the cazas. Unlike other cazas, prices in Metn have remained stable, at $1,920/m2.

Extensive coverage and charts about the indexes and the development of the real estate business is featured in the June issue of Lebanon Opportunities.
Reported by Yassmine Alieh
Date Posted: Jun 06, 2017
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