Real estate tumbles

Value of real estate sales in 2011 down by seven percent

The real estate sector saw a slowdown during 2011 with the total value of all sale transactions performed during the year standing at $8.84 billion. The value of real estate transactions was down by around seven percent from 2010.

The number of real estate transactions also fell by around 12 percent compared to the previous year. The number of sale transactions stood at 82,984 at the end of 2011.

The share of non-Lebanese buyers in real estate transactions in 2011 was only 1.8 percent of the total sale transactions. The share of foreigners in the correspondent transactions was around two percent in 2010 and 2.5 percent in 2009.
The average value per real estate transaction was around $106,500, six percent higher than the average value for the year 2010.

The average value per transaction in Beirut hovered at around $456,000, while it was around $171,700 in Metn, $100,800 in Baabda, and $97,400 in Keserwan.

The area of registered construction permits also fell by around seven percent during 2011. According to figures released by the Orders of Engineers of Beirut and the North, the total area of construction permits issued throughout the year stood at around 16,465,000 sqm.

Construction permits indicate the level of future supply in the real estate sector.

The area of building permits located in Mount Lebanon totaled around 8,482,000 sqm, while those in the North amounted to 2,738,000 sqm. Building permits granted in Beirut throughout 2011 totaled an area of 1,331,000 sqm. The area of permits granted in Bekaa was 1,208,000 sqm, while it was 1,638,000 sqm in the South, and 1,065,000 sqm in Nabatieh.