The residential sector has become more active at the level of the secondary market with brokers reporting an increase in sales especially of previously owned apartments. According to the ‘Residential Real Estate Survey’ conducted in July 2023 by InfoPro Research, 61 percent of real estate brokers said the number of sales transactions of apartments in Greater Beirut has increased over the previous 12 months. This represents a significant improvement compared to the findings of a similar survey conducted by InfoPro last year when only four percent reported an increase in sales. Small apartments in prime areas are the ones most in demand. They are mostly sought as an income-generating investment. A number of buyers, especially those who were hoarding cash in homes, purchase them in order to rent them out. Many are buying in anticipation of expected increases in prices which still are 30 percent to 50 percent below pre-crisis price levels. Developers’ appetite has slightly increased but development work is still in stagnation to a large extent.
Small is beautiful
Around half the brokers interviewed said that the number of owners looking to sell apartments has increased in the previous 12 months and 62 percent of them said that inquiries for buying apartments rose over the same period, according to the survey which involved a sample of 50 developers and 25 real estate consultants and brokers. The purposes for buying apartments include a safe-haven investment for savings, rental income, and owning a residence or moving to a bigger one. Small apartments are witnessing the most active trade as they could be easily rented out or be resold and, CEO of S-Gestion a property brokerage and management company. Kanaan has seen most activity in Ashrafieh where his offices are located as well as in the Faraya/Kfarzebian (Fakra) area, a secondary home destination for Beirut residents and expatriates.
