BUSINESS OPPORTUNITIES IN LEBANON YEAR VIII Real Estate In Greater - PowerPoint PPT Presentation

BUSINESS OPPORTUNITIES IN LEBANON – YEAR VIII Real Estate In Greater Beirut 1

Outline • Methodology • General Indicators • Supply/Demand • Selected Area Highlights • Price Evolution • Conclusion/Future Outlook 2

Methodology

Methodology • InfoPro Databases – Project Monitor – Classified Ad Monitor – Properties (bi-annual magazine) • InfoPro Surveys • Desk Research 4

Methodology - Limitations - • Street to street • Floor levels • Quality of amenities • Construction stage • View 5

General Indicators

General Indicators • Real Estate Transactions CAGR: +7.54% 30% increase 7

General Indicators • Real Estate Transactions CAGR: +15.96% 85% increase 8

General Indicators • Real Estate Transactions 9

General Indicators • Real Estate Transactions 10

General Indicators • Construction Permits CAGR: +8.79% Double 11

Supply/Demand

Supply/Demand Overview Greater Beirut Supply Demand Size Ashrafieh BCD Ras Mazraa Mousseitbeh Mousseitbeh 1 2 Beirut Up to 99 2% 0% 2% 0% 7% 0% 100 – 149 7% 9% 2% 21% 11% 0% 150 - 199 20% 11% 2% 57% 32% 4% 200 - 249 15% 9% 22% 13% 29% 16% 250 - 299 16% 23% 20% 4% 14% 12% 300 - 349 19% 11% 18% 2% 0% 16% 350 - 399 5% 12% 2% 2% 4% 30% 400 - 449 5% 4% 6% 0% 0% 9% 450 + 11% 23% 24% 0% 4% 14% 13

Future Supply Greater Beirut – Number of units to be delivered 1073 994 872 14

Absorption rates Beirut : Metn : • Apartment for sale: 8 • Apartment for sale: 7 • Apartment for rent: 8 • Apartment for rent: 9 • Land for sale: 6 • Land for sale: 8 Kesrouan : • Apartment for sale: 8 • Land for sale: 6 15

Price Evolution

Price Evolution CAGR: +19% CAGR: +16% Y-o-Y: +24% Y-o-Y: +32% 17

Select Areas Highlights Gemmayzeh: Ashrafieh: Rmeil: Average Price: $ 4,100 Average Price: $ 3,300 Average Price: $ 2,900 Sursock: Sodeco: Average Price: $ 4,500 Average Price: $ 4,400 Furn El Hayek: Average Price: $ 3,600 Nazareth: Sioufi: Average Price: Average Price: $ 2,700 $ 2,400 Sassine: Hotel Dieu: Average Price: Average Price: $ 2,700 $ 3,600 18 18 18 18

Price Evolution CAGR: +17% Y-o-Y: +3% 19

Select Areas highlight Beirut Central District: Average Price: $ 6,700 Marfaa: Average Price: $ 6,200 Bab Idriss: Average Price: $ 7,600 Minet El Hosn: Average Price: $ 6,900 Nejmeh: Average Price: $ 6,750 Saifi: Average Price: $ 5,500 Wadi Abou Jmil: Average Price: $ 6,000 20 20 20

Price Evolution CAGR: +23% CAGR: +17% Y-o-Y: +15% Y-o-Y: +14% 21

Select Areas highlight Mousseitbeh 1: Zarif: Average Price: $ 2,850 Average Price: $ 2,750 Karakol El Druz: Average Price: $ 3,000 Aisha Bakkar: Mar Elias: Average Price: $ 2,600 Average Price: $ 2,800 22 22 22

Price Evolution CAGR: +20% CAGR: +19% Y-o-Y: +5% Y-o-Y: +9% 23

Select Areas Highlights Mousseitbeh 2: Average Price: $ 5,000 Ain El Tineh: Average Price: $ 4,550 Koraytem: Average Price: $ 5,000 Tallet El Khayat: Average Price: $ 4,100 Ramlet El Baida: Average Price: $ 6,000 Unesco: Average Price: $ 4,500 24 24 24

Price Evolution CAGR: +18% CAGR: +19% Y-o-Y: +13% Y-o-Y: +10% 25

Select Areas highlight Mazraa: Average Price: $ 2,300 Bourj Abi Haidar: Average Price: Barbir: $ 1,900 Average Price: $ 1,800 Barbour: Average Price: $ 2,300 Taril El Jdide: Horch Beirut: Average Price: $ 2,000 Average Price: $ 3,000 26 26 26

Price Evolution CAGR: +16% CAGR: +19% Y-o-Y: +8% Y-o-Y: +7% 27

Select Areas highlight Ras Beirut: Ain Mreisseh: Average Price: $ 5,100 Average Price: $ 6,100 Manara: Average Price: $ 5,500 Clemenceau: Average Price: $ 4,500 Hamra: Average Price: $ 4,500 Sanayeh: Average Price: $ 3,750 Raouche: Average Price: $ 6,150 28 28 28

Growth Rates Area 2008 to 2009 2009 to 2010 Ashrafieh 19% 32% Beirut Central District 8% 3% Mousseitbeh 1 14% 14% Mousseitbeh 2 21% 9% Mazraa 14% 10% Ras Beirut 27% 7% 29

Beirut Suburbs Rabieh: Old : $ 2,000 Bir Hassan: New : $ 2,750 Old : $ 2,450 New : $ 2,750 Monte Verde: Old : $ 2,100 Hazmieh: New : $ 2,500 Old : $ 1,900 New : $ 2,000 Bchamoun: Baabda: Old : $ 1,000 Old : $ 1,900 New : $ 1,350 New : $ 2,800 Daouhet Aramoun: Aramoun: Old : $ 1,000 Old : $ 1,100 New : $ 1,250 New : $ 1,200 30 30 30

Conclusion

Conclusion • Will there be future repercussions on supply and demand due to the current political situation? • How will shrinking supply of land in major cities affect the real estate sector? • How will bank lending affect the real estate sector? • What are the future booming areas? 32

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