Two real estate indices
are launched by InfoPro

Price Index down, Inventory Index up

InfoPro Research has launched the Residential Real Estate Price Index and Residential Real Estate Inventory Index. The two indices are primary indicators of the housing market’s health. The indices track price evolution and apartment inventory of new residential stock across Administrative Beirut, Beirut suburbs, and the main urban and coastal areas of the Metn, Baabda, Keserouan, and Aley cazas.

The Price Index tracks the asking price and not the sales price of apartment units. The Inventory Index tracks the total number of available apartment units that are for sale. The index calculation, which will be published every six month, has 2012 as a base year. A nominal value of 100 is assigned for the year 2012, and then the value of each half year is plotted to show fluctuations in asking prices and unit inventory across the various areas.

The Price Index demonstrates a downward trend in prices for Beirut with results for the first half of 2016 showing that prices have regressed by 12 points compared to the first half of 2012, and by five points when compared to the first half of 2015. The prices for Beirut suburbs have declined at a lower rate, with the index showing a decline of 4.6 points when compared to the first half of 2012, and by 2.4 points when compared to the first half of 2015.

The index registered price stability in Metn when compared to the baseline and a decrease for Baabda, Keserouan, and Aley.

The Inventory Index shows an upward trend in the availability of apartments for Beirut. Results for the first half of 2016 show supply in Beirut has increased 75 points when compared to the first half of 2012. When compared to the first half of 2015, the index increases ten points. In Beirut suburbs, the index indicates that the supply since the first half of 2012 has doubled, while year-on-year results register an increase of 36 points, translating into approximately 2,000 new units.

The inventory of the Aley, Baabda, Metn, and Keserouan cazas demonstrates that Aley has doubled its stock in the past year. Baabda shows a similarity to Beirut with the Inventory Index registering a 16 point year-on-year increase. The lack of available apartments for both Beirut and Baabda are unsurprising since both areas have almost depleted their stock of available land. When comparing sales for all the above areas, results show that supply is commensurate to demand in the past year across all areas except for Aley where supply has outrun demand.