The year 2022 is nearing its end under exceptional circumstances that have become familiar to us. We prepare to welcome 2023, hoping it will bring solutions on all fronts. The impact of recent years has not spared any sector, and among the most affected has been the real estate sector, which has witnessed unprecedented declines. Walid Moussa, president of the Syndicate of Real Estate Brokers and Consultants, points out that "currently we are in a phase of complete dollarization in real estate, where the prices of all properties are now in fresh dollars only."
Moussa compares today’s property prices to those before 2019, saying: "Prices in certain areas, where residents earn in fresh dollars or are expatriates with purchasing power, have decreased by about 30 to 35 percent and have stabilized at this rate. In other areas, where residents rely on incomes in Lebanese pounds, the price drop has reached 60 percent, especially in the absence of housing loans." He notes that "properties have become divided into those targeting individuals with low purchasing power due to the crisis, and those who live abroad and have incomes from outside." He adds: "The demand for real estate has never stopped, but real estate transactions are light, and there are no noticeable buying and selling activities, especially after we witnessed a kind of price recovery."
As for the predictions for the real estate market in 2023, he states: "We all know that we are facing a fateful year in Lebanon on multiple fronts, primarily economic and political. It is certain that it will have a significant impact on the real estate sector. If the country moves toward improvement, there is no doubt that we will witness improvements and an increase in real estate transactions. It is clear that the real estate sector has declined recently, and it is likely that it will either remain as it is or we will see a noticeable improvement in the upcoming period."
A key factor affecting the real estate market, according to Moussa, is that "without housing loans, there is no real estate sector. Citizens, without these loans, are unable to purchase regardless of the property price." Thus, as with everything, the state of the country governs the future of the sectors. So, what can the real estate market expect next year?
