BEIRUT

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Value of real estate rallies as sales shoot up 23 percent

BEIRUT: National demand for properties picked up again in the first four months of this year after seeing a plunge in sales in the last two years.

According to figures released by the Finance Ministry, the value of properties up to April of this year jumped by 23.3 percent, bringing up the total value of property taxes by 11.8 percent, while construction permits reported an expansion by 11.1 percent over the period.

Bank Audi said the improvement in the real estate and construction sectors is tied to the amelioration of political and security conditions since the Cabinet formation and the successful implementation of security plans across the country.

The number of sales operations rose by 8.9 percent from 20,244 in the first four months of 2013 to 22,038 in the same period in 2014.

The value of property sales rose from $2.299 billion in the first four months of 2013 to $2.834 billion in the same period in 2014, a surge of 23.3 percent.

This is partly attributed to the increase in the average value per sale from $113,600 to $128,600 between the two periods.

Bank Audi said that despite the rise in the value of sold properties, the prices of apartments in most areas remained more or less the same.

It added that the improvement in activity on the demand side had generated more enthusiasm at the developer level, which reported an increase in construction permits in 2014 relative to 2013.

Construction permits covered an area of 4,649,655 square meters in the first four months of 2014, against 4,183,329 square meters in the same period of 2013, a yearly increase of 11.1 percent.

 
A version of this article appeared in the print edition of The Daily Star on June 03, 2014, on page 5.

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