Total real estate transactions (local and foreign transactions) stood at 28,722 by June, with a 14.97% yearly drop from 33,780. In addition, those total transactions were worth $3.59B, declining by an annual 20.00%, over the same period.
The decline in demand for real estate has been quite prominent following the Arab Spring in 2010 and the Syrian conflict in 2011, as the six-month moving average by June 2015 had tumbled by 35.87% from June 2010. In addition, the six month moving average depicts a seasonal effect as the main drops are experienced in H1 of each year, ensued by a recovery in the second half of the year. However, this seasonal effect confirms the declining drift in the real estate with peak points illustrating drops from year to year. The reason for this fall in demand could be attributed to the pent up demand that was exhausted during the four years prior to the Syrian crisis and the implications of the latter mainly on foreign demand for the Lebanese real estate.
In contrast, figures revealed that foreigners’ share of total real estate transactions went up annually from 1.51% to 2.33% by June 2015. This progression probably is due to the improving security situation in Lebanon relative to other countries in the region, which positively affected tourism.
On another note, average value of real estate transactions went down by 5.91% y-o-y from $132,748 by May 2014 to $124,905 in the same period this year.
Total Real Estate Transactions by June