Developers flooded the market with giant apartments no one wanted, needed or could afford.
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"We are suffering," says Mireille Korab Abi Nasr, head of business development at FFA Real Estate and vice president of the real estate developers' association REDAL.At the high end of the residential market, prices are said to have dropped some 30 percent off their 2010-11 highs.A drop in the price of oil takes over a year and a half to manifest itself in nonresident deposits.Nassereddine also points to steady demand for smaller apartments.While the drop at the high end of the market has put downward pressure on the price of smaller apartments, Nassereddine says, the latter is coming down more slowly, due in part to this demand. By the time developers realized what was going on, many large-apartment projects were already underway and would continue to come online for years to come, flooding the market with giant apartments no one wanted, needed or could afford.According to RAMCO's research, there were some 3,600 unsold apartments in Beirut proper as of Nov. 20 . This translates to 900,000 square meters of residential space with a value of $3.6 billion, Makarem says.
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