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THE

LEBANON BRIEF

ISSUE 955

Week of February 8 - 13, 2016

ECONOMIC RESEARCH DEPARTMENT

BLOMINVEST Bank Headquarters

Bab Idriss, Beirut, Lebanon

T (01) 991 784/2 F (+961) 1 991 732

[email protected]

www.blom.com.lb

S A L

ISSUE 955 Week of February 08-13, 2016

S A L

TABLE OF CONTENT

FINANCIAL MARKETS 1

Equity Market 1

Foreign Exchange Market 3

Money & Treasury Bills Markets 3

Eurobond Market 4

ECONOMIC NEWS 5

Commercial Banks’ Asset Growth in 2015: The Slowest Since 2006 5

Lebanon’s Balance of Payments Deficit in 2015: The Highest in More than Two Decades 5

Construction Permits Fell by a yearly 9.43% in 2015 6

Registration of Commercial Cars Boosts New Car Market in January this Year 7

CORPORATE DEVELOPMENTS 8

IFC Grants a $7M Loan to the Leasing Arm of Fransabank Group 8

FOCUS IN BRIEF 9

In-Depth Review of the Lebanese Real Estate Sector in 2015 9

This report is published for information purposes only. The information herein has been compiled from, or based upon sources we believe to be

reliable, but we do not guarantee or accept responsibility for its completeness or accuracy. This document should not be construed as a

solicitation to take part in any investment, or as constituting any representation or warranty on our part. The consequences of any action taken on

the basis of information contained herein are solely the responsibility of the recipient.

The Lebanon Brief Page 1 of 21


S A L

FINANCIAL MARKETS

Equity Market

Stock Market

12/02/2016 05/02/2016 % Change

BLOM Stock Index* 1,162.40 1,159.14 0.28%

Average Traded Volume 218,411 116,653 87.23%

Average Traded Value 2,005,291 1,148,959 74.53%

*22 January 1996 = 1000

For the second week running, the Lebanese stock

market managed to show positive weekly

performance on the account of the better than

expected results by Lebanese banks and despite

the continuing retreat in global equity markets.

The BLOM Stock Index (BSI) ended the week

0.28% higher at 1,162.40 points after reaching its

highest level since January 18, 2016 on Friday.

Hence, the BSI managed, over this week’s four

sessions, to narrow its year to date loss to a mere

0.61%.

The daily average volume of trades almost doubled

from last week’s level of 116,653 shares worth

$1.15M to 218,411 shares worth $2.01M. With

respect to the market capitalization, it rose on a

weekly basis by $26.94M to $9.60B.

On the international and regional equity markets,

the partial recovery witnessed last week on fading

expectations of the Fed raising interest rates this

year was counterbalanced by substantial selloff

trends that reflected investors’ flight to safety. In

fact, concerns regarding global economic growth

amid bearish oil prices hit most of the global

indices of which S&P Pan Arab Composite Large-

Mid-Cap Index that shed by a weekly 3.30%

compared to respective drops of 3.58% and 3.03%

for the Morgan Stanley Emerging Markets Index

(MSCI) and the S&P AFE 40 Index.

The Arab stock markets followed the trend as most

of the bourses dipped into the red. Oil-exporting

Saudi Arabia and Dubai show respective weekly

declines of 5.23% and 2.52% on skepticism of

weakening oil prices. However, the biggest decline

was depicted on the Egyptian stock exchange that

revealed a 6.26% weekly drop. In contrast, and

besides the Lebanese stock exchange, Muscat and

Amman were the sole weekly winners recording

respective gains of 2.24% and 0.12%.

On the Beirut Stock Exchange, the banking sector

accounted for 93.92% of the week’s traded value,

while the real estate and industrial sectors

respectively contributed to 5.90% and 0.18% of the

total.

Banking Sector

Mkt 12/02/2016 05/02/2016

%

Change

BLOM (GDR) BSE $10.00 $9.80 2.04%

BLOM Listed BSE $9.60 $9.40 2.13%

BLOM (GDR) LSE $10.00 $9.81 1.94%

Audi (GDR) BSE $6.10 $6.10 0.00%

Audi Listed BSE $6.17 $6.10 1.15%

Audi (GDR) LSE $6.70 $6.10 9.84%

Byblos (C) BSE $1.65 $1.64 0.61%

Byblos (GDR) LSE $75.00 $75.00 0.00%

Bank of Beirut (C) BSE $18.75 $18.80 -0.27%

BLC (C) BSE $1.70 $1.70 0.00%

Fransabank (B) OTC $27.00 $27.00 0.00%

BEMO (C) BSE $1.90 $1.90 0.00%

Mkt 12/02/2016 05/02/2016 % Change

Banks’ Preferred

Shares Index *

106.01 106.01 0.00%

Audi Pref. F BSE $102.00 $102.00 0.00%

Audi Pref. G BSE $100.90 $100.90 0.00%

Audi Pref. H BSE $101.50 $101.50 0.00%

Byblos Preferred 08 BSE $101.00 $101.00 0.00%

Byblos Preferred 09 BSE $101.00 $101.00 0.00%

Bank of Beirut Pref. I BSE $26.50 $26.50 0.00%

Bank of Beirut Pref. H BSE $26.50 $26.50 0.00%

Bank of Beirut Pref. J BSE $26.50 $26.50 0.00%

BLOM Preferred 2011 BSE $10.15 $10.15 0.00%

BEMO Preferred 2013 BSE $100.00 $100.00 0.00%

* 25 August 2006 = 100

1100

1120

1140

1160

1180

1200

1220

1240

Feb-15 May-15 Aug-15 Nov-15 Feb-16

BLOM Stock Index

HI: 1,236.40

LO: 1,108.49



S A L

Real Estate

Mkt 12/02/2016 05/02/2016 % Change

Solidere (A) BSE $10.06 $10.15 -0.89%

Solidere (B) BSE $10.00 $10.47 -4.49%

Solidere (GDR) LSE $9.65 $10.00 -3.50%

In the banking sector, the listed shares of Audi,

Byblos and Bank of Beirut (BoB) registered weekly

increases of 0.33%, 0.61% and 3.30% to $6.10,

$1.64 and $18.80, respectively. In addition, the

Global Depository Receipts (GDR) of BLOM rose by

a weekly 1.55% to settle at $9.80.

Manufacturing Sector

Mkt 12/02/2016 05/02/2016 % Change

HOLCIM Liban BSE $14.35 $14.41 -0.42%

Ciments Blancs (B) BSE $3.50 $3.50 0.00%

Ciments Blancs (N) BSE $3.10 $3.10 0.00%

On the LSE, BLOM GDRs gained 1.94% during

the week to $10. Meanwhile Solidere GDRs lost

3.50% to end the week $9.65.

On another front, the BLOM Preferred Shares

Index (BPSI) remained at last week’s level of

106.01 points as no price changes were recorded

on the Lebanese preferred shares this week.

In the industrial sector, HOLCIM shares

decreased by 0.42% to end the week at $14.35.

As the Lebanese bourse remains intact to the

global headwinds that characterized 2016 since

its beginning, reaching a political consensus

regarding the presidential elections will remain

the main factor to shape the Beirut Stock

Exchange’s performance in the coming period.

Retail Sector

Mkt 12/02/2016 05/02/2016 % Change

RYMCO BSE $3.23 $3.23 0.00%

ABC (New) OTC $27.00 $27.00 0.00%

Tourism Sector

Mkt 12/02/2016 05/02/2016 % Change

Casino Du Liban OTC $323.00 $323.00 0.00%

SGHL OTC $7.00 $7.00 0.00%



S A L

Money & Treasury Bills Markets

Money Market Rates

Treasury Yields

11/02/2016 04/02/2016

Change

bps

3-M TB yield 4.39% 4.39% 0

6-M TB yield 4.87% 4.87% 0

12-M TB yield 5.08% 5.08% 0

24-M TB coupon 5.84% 5.84% 0

36-M TB coupon 6.50% 6.50% 0

60-M TB coupon 6.74% 6.74% 0

11/02/2016 04/02/2016 Change bps

Overnight Interbank 3.00% 2.75% 0

BDL 45-day CD 3.57% 3.57% 0

BDL 60-day CD 3.85% 3.85% 0

During the week ending on January 28th, broad Money M3

decreased by LP 100B ($66.32M) to reach LP 185,628B

($123.14B). M3 registered a 5.08% yearly growth and a

0.52% year-to-date downtick. Similarly, M1 regressed by

LP 90B ($59.70M) over the mentioned period, due to the

decrease in demand deposits by LP 57B ($37.81M) and

the LP 33B ($21.89M) drop in money in circulation. Total

deposits (excluding demand deposits) dropped by LP

10.53B ($6.98M) during the week, given the $70M

contraction in deposits denominated in foreign currencies

and the LP 95B increase in term and saving deposits.

Over the above mentioned period, the broad money

dollarization rate ticked down from to 57.78% on the 21st

of January to 57.75% on the 28th of January. According to

the Central Bank, the overnight interbank rate steadied at

3.00% by the end of October 2015.

In the TBs auction held on the February 04, 2016, the

Ministry of Finance (MoF) raised LP 377.87B ($250.66M),

through the issuance of bills and notes maturing in 12M

and 5Y. The highest demand was achieved on the 5Y

notes, which grasped an 87.44% share of total

subscriptions, while the 12M bills captured the remaining

12.56%. The discount rate on the 12M bills stood at

5.08%, while the coupon rate on the 5Y notes registered

6.74%. New subscriptions exceeded existing maturities by

LP 124.47B ($82.57M).

Foreign Exchange Market

Lebanese Forex Market

12/02/2016 05/02/2016 % Change

Euro / Dollar 1.1296 1.1195 0.90%

Sterling / Dollar 1.4545 1.4535 0.07%

Dollar / Swiss Franc 0.9784 0.9974 -1.90%

Dollar / Yen 112.95 117.42 -3.81%

NEER Index** 167.55 167.76 -0.13%

*Close of GMT 09:00+2

**Nominal Effective Exchange Rate; Base Year Jan 2006=100

**The unadjusted weighted average value of a country’s currency relative to all major

currencies being traded within a pool of currencies. The NEER represents the approximate

relative price a consumer will pay for an imported good.

Demand for the Dollar in the Lebanese Forex Market remained

unchanged over the past week as the value of the Lebanese

Pound steadied at $/LP 1,513-1,514 with a mid-price of $/LP

1,513.5.

Foreign assets (excluding gold) of the Central Bank fell by a

monthly 1.91% to $37.09B at the end of December 2015. The

dollarization ratio of private sector deposits fell from 65.71% in

2014 to 64.88% in 2015.

By Friday 12th

of February, 2016, 10:30 am Beirut time, the euro

appreciated against the dollar-pegged LP as the exchange rate

added 0.90%, over the last week, from €/LP 1,687.65 to €/LP

1,702.87 . As for the Nominal effective Exchange Rate (NEER), it

decreased by a weekly 0.13% to 167.55 points.

Nominal Effective Exchange Rate (NEER)

The Euro rose by a weekly 0.90% against the dollar as it appears

investors are rushing to buy safe-haven currencies on account of

growing concerns over global economic risks. The euro-dollar

might go back in favor of the dollar if the upcoming US retail sales

data for January is robust.

The rush for safety pushed gold prices higher from last week’s

$1,148.50/ounce to $1,240.36/ounce this week.

140

143

146

149

152

155

158

161

164

167

170

173

Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16



S A L

Eurobond Market

Eurobonds Index and Yield

11/02/2016 04/02/2016 Change Year to Date

BLOM Bond Index (BBI)* 102.650 102.648 0.002% -1.40%

Weighted Yield** 6.41% 6.40% 1 139

Weighted Spread*** 528 512 16 98

*Base Year 2000 = 100; includes US$ sovereign bonds traded on the OTC market

** The change is in basis points ***Against US Treasuries (in basis points)

Lebanese Government Eurobonds

Maturity - Coupon

11/02/2016

Price*

04/02/2016

Price*

Weekly

Change%

11/02/2016

Yield

04/02/2016

Yield

Weekly

Change bps

2017, Mar - 9.000% 104.25 104.56 -0.30% 5.00% 4.79% 21

2017, Oct - 5.000% 99.63 99.63 0.00% 5.23% 5.23% 0

2018, Jun - 5.150% 99.38 99.38 0.00% 5.43% 5.43% 0

2018, Nov - 5.150% 99.25 99.25 0.00% 5.44% 5.44% 0

2019, Apr - 5.500% 98.38 98.38 0.00% 6.06% 6.06% 0

2020, Mar - 6.375% 100 99.88 0.12% 6.37% 6.41% -3

2020, Apr - 5.800% 97.88 97.75 0.13% 6.38% 6.42% -3

2021, Apr - 8.250% 107.5 107.5 0.00% 6.51% 6.52% -1

2022, Oct - 6.100% 97.25 97.13 0.12% 6.62% 6.64% -2

2023, Jan - 6.000% 96.25 96.25 0.00% 6.68% 6.68% 0

2024, Dec - 7.000% 101.38 101.25 0.13% 6.79% 6.81% -2

2025, Feb - 6.200% 96 95.75 0.26% 6.80% 6.84% -4

2026, Nov - 6.600% 96.63 96.63 0.00% 7.05% 7.05% 0

2027, Nov - 6.750% 97.13 97.25 -0.12% 7.11% 7.10% 2

2030, Feb - 6.650% 95.38 95.38 0.00% 7.18% 7.18% 0

Mid Prices ; BLOMINVEST bank

The activity on the Lebanese Eurobonds market was subdued over the past week as the BLOM Bond Index (BBI) rose by a minor

0.002% to 102.65 points. The Lebanese gauge was able to outperform the JP Morgan Emerging Markets’ Bond Index which

dropped by a weekly 0.8% to 663.72 points.

The yield on the 5 Year Lebanese Eurobonds steadied at 6.50% while the yield on the Lebanese Eurobonds maturing in 10 Years

slid by 1 basis point (bp) to 6.93%.

In light of increased global economic risks, safe-haven assets gained appeal over the past week. Higher demand was registered for

medium and long term US Treasuries as the yields on the 5Y and 10Y US Treasuries slid by 14 bps and 24 bps to 1.11% and 1.63%,

respectively.

Accordingly, the spread between the yields on the 5Y and 10Y Lebanese Eurobonds and their US comparable widened from 525

bps and 507 bps to 539 bps and 530 bps, respectively.

5Y CDS 11/02/2016 04/02/2016

Mid-Price Mid-Price

Lebanon 472 455

KSA 193 272

Dubai 264 174

Brazil 506 473

Turkey 310 275

5.00%

5.50%

6.00%

6.50%

7.00%

Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16

Weighted Effective Yield of Eurobonds



S A L

ECONOMIC NEWS

Commercial Banks’ Assets, In $M

Source: BdL

Lebanon’s Balance of Payments: Historical Data

Source: BdL

Commercial Banks’ Asset Growth in 2015: The Slowest

Since 2006

According to the Central Bank of Lebanon, the assets of

commercial banks grew by a yearly 5.86% to $185.99B in 2015.

Claims on the resident private sector increased by a yearly 5.90% to

$48.05B and claims on the non-resident private sector deposits

grew by a yearly 11.71% to $6.18B in 2015.

Lebanese banks’ exposure to Eurobonds rose by an annual 8.18%

to $17.65B while their subscription to Treasury bills in Lebanese

pounds declined by a yearly 4.18% to $20.06B.

On the liabilities side, resident private sector deposits grew by

4.9% y-o-y from $114.12B in 2014 to $119.73B while non-resident

private sector deposits grew by 5.14% from $30.30B in 2014 to

$31.86B in 2015. The dollarization ratio of private sector deposits

fell from 65.71% in 2014 to 64.88% in 2015.

Lebanon’s Balance of Payments Deficit in 2015: The

Highest in More than Two Decades

According to the Central Bank of Lebanon, Lebanon’s Balance of

Payments deficit widened from $1.41B in 2014 to $3.35B in 2015.

This deterioration came about as the net foreign assets of the

Central Bank dropped by $473.4M and as those of commercial

banks declined by $2.89B. The worsening of Lebanon’s external

position is the result of lower capital inflows following the unrest in

neighboring Syria and local turmoil.

In December, Lebanon’s Balance of Payments registered a deficit

of $372.4M compared to a deficit of $115.5M in the same month

last year.

0%

2%

4%

6%

8%

10%

12%

14%

120,000

130,000

140,000

150,000

160,000

170,000

180,000

190,000

200,000

2010 2011 2012 2013 2014 2015

Commercial Banks' Assets Yearly Growth

-4,000.0

-2,000.0

0.0

2,000.0

4,000.0

6,000.0

8,000.0

10,000.0



S A L

Monthly Number of Construction Permits

Source: Orders of Engineers in Beirut and North

Construction Permits Fell by a yearly 9.43% in 2015

Construction activity showed further contraction in 2015 as

revealed by the number of permits that witnessed a 9.43% year-on-

year (y-o-y) slip to 15,092. In the same context, the construction

area authorized by permits (CAP) declined by a yearly 10.56%,

amounting to 12.12M sqm in 2015, compared to 13.55M sqm in

2014.

Noting that permits are usually issued at least 6 months after

applications are filed, the fall in construction activity is most

probably caused by the lingering political and security

developments, on both the local and regional fronts. As a matter of

fact, the appetite for construction weakened starting 2011, as the

process of selling became much harder and the access of

contractors, with small market share, to construction loans became

tougher given their poor standing in the market.

As for the average area per transaction, it slightly decreased from

812.92 sqm/permit in 2014, to 802.77 sqm/permit by the end of

2015. In terms of regions, Mount Lebanon grasped 41.07% of total

permits, followed by South Lebanon and Nabatiyeh with respective

shares of 17.04% and 13.32%.

Looking at December alone, the number of permits stood at 1,365

in December, a 4.36% y-o-y increase from December 2014’s level.

Similarly, the CAP witnessed a 9.42% yearly increase to 1.08M

sqm up from 986,113 sqm registered in the same month of last

year.

900

1,100

1,300

1,500

1,700

1,900

2,100

Dec-10

Ap

r-11

Au

g-11

Dec-11

Ap

r-12

Au

g-12

Dec-12

Ap

r-13

Au

g-13

Dec-13

Ap

r-14

Au

g-14

Dec-14

Ap

r-15

Au

g-15

Dec-15

Monthly construction permits

6-Month Moving Average



S A L

Car Brands, Share in Total New Passenger Cars

Source: Association of Car Importers in Lebanon

Registration of Commercial Cars Boosts New Car

Market in January this Year

According to the Association of Lebanese Car Importers (AIA), the

number of newly registered commercial and passenger cars in the

first month of 2016 increased by an annual 1.3% to 2,595 cars. In

details, the registration of new passenger vehicles slid by a yearly

1.1% to 2,409 cars while the registration of new commercial cars

increased from 125 cars in January 2015 to 186 cars in January

2016.

Downturns in the registration of new passenger vehicles were

witnessed across all brands in January. The leading Japanese cars

saw a fall in registration from 1,182 cars in January 2015 to 937

cars in January 2016. The registration of Korean cars also shrunk

from 1,037 cars in January 2015 to 707 cars in the same month in

2016. European and American vehicles also saw their registration

numbers respectively fall from 699 and 171 in January 2015 to 624

and 133 in January 2016.

Buyers of new commercial cars are also looking to benefit from the

attractive prices of European and Japanese cars due to the

depreciation of the euro and the yen. In the European segment,

Dacia led the increase in commercial cars registration with 33 Dacia

registered in January 2016 compared to 13 registered in January

2015. While no commercial Mercedes cars were registered in the

first month of 2015, 9 were registered in the first month of this

year. In the Japanese segment, the number of commercial Isuzu

registration more than doubled from 6 in January 2015 to 17 in

January 2016 and the number of commercial Nissan registration

rose from 4 to 13 over the same period.

In January 2016, NATCO, the importer of Kia, retained the highest

market share of 17.65%. BUMC came in close second with a share

of 16.15%, followed by 12.60% for Bassoul Heneine, 9.63% for

Century Motor Co and 9.21% for Rymco.

19.01%

15.61%

10.17%

8.14% 4.82%

4.77%

4.19%

3.78%

3.28%

26.23%

Kia Toyota Hyundai Nissan

Suzuki Renault BMW Mercedes

Mazda Others



S A L

CORPORATE DEVELOPMENTS

IFC Sustainable Energy Finance Program

Source: IFC, Fransabank

IFC Grants a $7M Loan to the Leasing Arm of

Fransabank Group

As part of its Sustainable Energy Finance Program, the International

Finance Corporation (IFC), a member of the World Bank Group, with

the support of the Government of Canada, extended a $7M loan to

the Lebanese Leasing Company (LLC), the leasing arm of

Fransabank Group.

According to Fransabank’s official press release, The IFC’s initiative

is designed to “strengthen the capacity of banks and financial

institutions to extend sustainable energy financing to the private

sector”. $3.5M are to be disbursed from the IFC’s own account and

the remaining $3.5M will be paid by the IFC-Canada Climate Change

Program. The IFC already granted two other Sustainable Energy

Finance (SEF) loans with a value of $10M and $3M to Fransabank

and LLC respectively in May 2014, which were fully utilized

according to the same statement.

125 Financial Partners

135 Sustainability and Climate

Projects

Across 37 countries

$4.5 Billion in Financing

Reduction of over 30 million tons of

greenhouse gas emissions



S A L

FOCUS IN BRIEF

In-Depth Review of the Lebanese Real Estate Sector in 2015

Following five years of outstanding performance, the Lebanese economy entered a new era of distress starting 2011, resulting

from an internal instability and a political deadlock. The eruption of the Syrian war amplified this downturn bringing real GDP

growth down from 8% in 2010 to 2% in 2011, 2.5% in 2012 and 1.5% in 2013 as core drivers of growth such as construction,

real estate and tourism were negatively impacted by the worsening regional and domestic conditions. GDP growth is estimated

to have reached a negligible level of 0.5% during 2015 and could have turned negative if not for the initiatives of the Lebanese

Central Bank.

Still, the Lebanese real estate market remained, even in the darkest times, one of the backbones of the Lebanese economy.

Bearing in mind that the last 4 years were not the best of times for real estate activity, the sector kept on revealing its high

resilience and its ability to adjust to the new realities. As a matter of fact, real estate maintained its considerable stake of Gross

Domestic Product (GDP) in 2013 at 14%, despite the lingering political impasses and the worsening security situation on both

the domestic and regional fronts.

Regardless of its ability to survive the political and security shocks that negatively impact the whole economy, the spillovers of

the worsening economic situation on the Lebanese property sector hardly went unnoticed. This has been the case in 2011,

when the political and economic instabilities weakened investors’ appetite. The latter kept on deteriorating up until 2014 when

the market got a little breathing space, hand in hand with a marginal pick-up in economic activity following the election of a

new Cabinet. However, 2015 sent the real estate sector back to the red zone, showing that the slight improvement witnessed a

year earlier was no more than a minor alteration in the bearish trend that started during the previous years.

In reality, the performance of the property market highly reflected the economic activity during 2015 as confirmed by the BLOM

Purchasing Managers’ Index (PMI) that tracks business conditions in the private sector. Hence, the PMI hit 46.9 in November

2015, worsening from a previous 49.5 reading in the same month of 2014, digging further below the neutral reading of 50 that

separates expansion from contraction.

Real estate demand was heavily impacted by the regional turmoil as shown by the number and value of transactions recorded

at the real estate registry. The total number of real estate transactions (built-up units and lands) reached a 5-Year low of 73,925

transactions by November 2015, dropping by a yearly 5.1% from the same period in 2014. Similarly, the total value of real

estate transactions tumbled by 14.2% year-on-year (y-o-y) to reach $7.49B in the first eleven months of 2015, down from a

previous $8.73B by November 2014.

Total Number and Value of Real Estate Transactions by November

Source: Lebanese Cadastre Registry

8.10

8.45

8.35

8.73

7.49

100,355

87,827

83,017 77,917

73,925

-

20,000

40,000

60,000

80,000

100,000

120,000

$6.8

$7.2

$7.6

$8.0

$8.4

$8.8

$9.2

2011 2012 2013 2014 2015

Total Value of Real Estate Transactions ($B) Total Number of Real Estate Transactions



S A L

The analysis below will be divided into 2 major sections: the first will be related to the built

property sector, while the second part will focus on the dynamics of the raw land market.

Built Units: Dwindling Performance in 2015 amid Persisting New Trends

Back in time, 2007-2011 was a booming period for the Lebanese real estate market characterized by a pent-up demand

outpacing supply levels. Supply tried to catch up over the mentioned period; however projects need time to be designed,

licensed and constructed. Consequently, real estate prices skyrocketed after being well below the regional levels for a long

time. Real estate demand was hindered starting late 2011 by pressures from the war in Syria and the fragile domestic situation

that continued through 2013.

After 2011, demand stagnated while supply continued its uptrend, catching up with demand and even surpassing it in 2014.

The period 2011-2013 can be described by an improving supply that took time to adapt to demand levels. In 2014, real estate

supply rose at a faster pace than demand, with prices stagnating at their previous levels. However, the residential market

began an adjustment phase as realtors started to adapt to the new market dynamics. Demand for built property worsened in

2015. Investors’ appetite for built property units declined 10% in both volume and value reaching 31,186, and $4.42B,

respectively.

As real estate lost its lure in 2015, Lebanese expats and Gulf investors seem to have shied away from the market. Given that

the mentioned buyers are the prime clientele of big and luxurious apartments in Beirut, the shaky confidence of the Lebanese

expats and the Gulf nationals in the market heavily affected the luxurious segment of the residential property market. In

specific, the situation worsened after GCC countries issued travel warnings against their citizens traveling to Lebanon. This

pushed Gulf nationals and even Lebanese expats to hold back any new real estate investment in Lebanon, waiting for a clearer

view of how events will materialize. As a result, and given that demand of wealthy Gulf nationals and Lebanese expats was

oriented towards Beirut Central District (BCD), the average price per SQM is estimated to have declined by almost 11%

between 2011 and 2013.

However, the heightening regional security turbulences, mainly in Syria and Iraq, have pushed nationals of these war ridden

countries to penetrate the Lebanese property market in 2015. Most probably, Syrian and Iraqi nationals are progressively losing

hope in any approaching improvement in the lingering situation of their countries. Consequently, many of them started to

consider acquiring an apartment in Lebanon, after hanging around for 4 years in the rental market.

This was translated by a slight progress in foreign demand in 2015, following several years of dwindling performance. Even

though minimal, foreign built property transactions took 3.7% of total built real estate transactions by November 2015

compared to a lower stake of 2.8% by November 2014. It was noticeable that foreign demand’s share in 2015 was the highest

in 5 years. In absolute terms, the number of built units’ transactions went up from 973 by November 2014 to reach 1,156

transactions in 2015, near 2011’s level. The value of these transactions rose by 2.7% y-o-y to $384.99M by November 2015.

The Central Bank’s Stimulus Package Partially offset the Declining Activity

Lebanese commercial banks succeeded in attracting additional borrowers for their housing loans in 2015. The continuous

support of the financial sector and more specifically the Lebanese Central Bank’s (BdL) stimulus packages to the private sector

that continued through 2015 pushed households to borrow from commercial banks.

In addition, Lebanese banks were implementing aggressive and competitive marketing strategies to boost lending activity by

lengthening the loans’ repayment schedules and providing lower interest rates following the financial crisis. Actually, the

Lebanese commercial banks are mainly providing 2 types of subsidized loans: the Central Bank subsidized loan and the

program in cooperation with the Public Corporation for Housing (PCH). Given that the former is usually offered at relatively

higher interest rate, Lebanese citizens tend to apply for PCH loans, known as “Iskan” loans as they are more designed for low-

to middle- end households.



S A L

Thus, housing loans maintained their upbeat performance, yet at a slower pace with their total value standing at $10.4B by July

2015, a 5% increase since year start. Worth mentioning that housing loans almost constituted 18% of total outstanding private

loans by July 2015 compared to 6% in 2008. In addition, housing loans at Lebanon’s commercial banks almost doubled from

2011’s level of $5.98B with the number of borrowers rising by more than 25,000 over the 5-Year period. As a result, the average

value per housing loan stood at $94,332 by November 2015, slightly higher than the $93,965 recorded a year earlier.

Housing Loans Evolution

Source: BdL

Buyers are shifting to small apartments outside Beirut as a result of the substantially high prices and enormous spaces in the

capital. The average asking price in Beirut Central District (BCD) records the highest market price at $6,679 per SQM for 1st

floor apartments averaging 331 SQM. Accordingly, developers are offering one apartment for $2,210,749 on average. Outside

BCD, high-end neighborhoods (Ain el Tineh, Sursock …) charge between $4,900 and $5,250 per SQM while mid-market

neighborhoods of Ashrafieh post prices around $2,600 per SQM. It’s worth mentioning that all of the prices above don’t take

into consideration the negotiation margins that actually take place on the market.

Due to its high prices, Beirut continued to grasp an important share of the built property transactions’ value, but for a much

smaller number of transactions. In terms of value, Beirut grasped 27% of the total value of built property transactions by

November 2015. This could be explained by the scarcity of land in the Capital which has bolstered realty prices during the past

years. However, the number of built property transactions in Beirut constituted 11% only of the total number of built unit

transactions. This has sent the average value per built realty transaction to $350,084, almost three times higher than the

average of total Lebanese Cazas.

However, prices in Beirut are declining as the number of unsold apartments increased. A study conducted by RAMCO Real

Estate Advisers covering 345 residential buildings across Municipal Beirut revealed that the average price of a 1st floor for an

under-construction residence is of $3,720 per SQM. This figure marks a 4% drop on the average price between 2014 and 2015.

The study also revealed that out of 1,213 completed residential apartments in Municipal Beirut, 24% were unsold in 2014 and

were valued at $480M. In details, the census was based on 56 completed projects throughout 51 neighborhoods in the capital.

Hence, the sales ratio1 stood at 76% in 2014 comparing to 78% and 82% in 2013 and 2012, respectively.

1 residential area sold out of the total residential stock under construction

5.98

7.27

8.53

9.88

10.4 33%

22%

17%

16%

5%

0%

5%

10%

15%

20%

25%

30%

35%

$0

$2

$4

$6

$8

$10

$12

2011 2012 2013 2014 Jul-15

Housing Loans (In $B) Growth Rate (In %)



S A L

The annex table 1 discloses the real situation of apartments in the neighborhoods of the capital in terms of size and price. In

reality, there is almost no neighborhood in the capital that revealed prices below $2,000 per SQM. In addition, the smallest size

noted for an apartment was 165 SQM on average and was recorded in Getaoui where the estimated apartment price is around

$492,000. This is one example of what is really happening in Beirut and reveals the reasons why developers are facing

obstacles to liquidate their units. The fact that the average size of apartments in Beirut tends to be large with prices never

below $2,000 per sqm, leads the minimum price a potential buyer can find to always exceed $300,000.

Hence, and given that residential property demand was mainly limited to that of young Lebanese households (newly married in

specific), new buyers became more interested in buying real estate units in the outskirts of Beirut for 2 main reasons. First,

apartments outside Beirut are sold at substantially lower prices. Second, the requirements of housing loans were partly

dictating borrowers’ preferences and choices.

Apartments outside Beirut are sold at substantially lower prices.

The top 2 destinations of real estate buyers by November 2015 were Metn and Baabda Cazas as they took respective shares of

18% and 14% of the total number of real estate transactions. However, and given the rising demand for real estate in both

Cazas (Metn and Baabda), realty prices in those 2 regions slightly augmented by an average of maximum 2% (as revealed in the

Annex Graph 2), yet remaining substantially lower than that of Beirut.

The requirements of housing loans were partly dictating borrowers’ preferences and choices.

Average Value per Built Property in the Lebanese Cazas by November 2015

Source: BLOMINVEST, Lebanese Cadastre Registry, BdL

The table above ranks the averages of built-unit transactions by region, and shows where the average value of a housing loan

and that of a PCH loan fit into the list. The credit facilities appear to cover apartments in most cazas, however, buying a

residential apartment in Beirut, or even in Metn, is almost out of reach for the majority of Lebanese households and more

specifically the newly married couples.

Region Average Value

Beirut $ 350,084

Metn $ 172,795

PCH Housing Loan $ 162,000

Baabda $ 159,748

Jounieh $ 143,483

Aley $ 123,234

Byblos $ 109,934

Average Housing Loan $ 94,332

Shouf $ 89,143

Zahleh $ 85,954

Rachaya $ 75,812

South $ 73,163

Tyr $ 71,092

North 2 $ 50,419

North 1 $ 47,011

Nabatiyeh $ 46,807

Akkar $ 40,811

Baalbek $ 40,246

Marjeyoun $ 39,446



S A L

Developers’ Concerns were on the Rise Triggering Construction Activity into a 5-Year Low

Moving to the supply side, most indicators were on the decline in 2015. A slowing construction activity was highlighted by

shrinking volumes of cement deliveries in addition to decreasing levels of construction permits.

Primarily, the conclusion of Port of Beirut’s expansion project, the absence of any new major infrastructure project led by the

public sector, and in part the shrinking of illegal construction, were the main reasons behind the fall of cement deliveries in

2015. Cement deliveries, which are one of the earliest barometers of construction activity, revealed weakening performance

during 2015. They kept on declining for the second year in a row, shedding 20% y-o-y in the first three quarters of 2015 to

reach 3.38M tons. In fact, the persisting political standstill in 2015 hindered the initiation of any new large scale infrastructure

project.

The sluggish performance of construction was also translated by a decreasing number of new construction permits during the

first eleven months of 2015. The six-month moving average of the number of construction permits (pictured below) illustrates

the decline witnessed in the sector since 2011, following the eruption of the Arab spring. In fact, a 10.6% yearly drop was

recorded in the number of construction permits by the end of November 2015 to 13,727, registering a 5-Year low.

Cement deliveries Up to September (In Million tons)

Source: Banque du Liban

Worth mentioning that construction permits are an early indicator of developers’ perspective regarding the future of the real

estate market. The fact that permits are usually issued 6 months after applications are filed reveals that the change in the

number of authorized permits does not reflect the actual market’s sentiment, but the one that investors perceive for the future

period. In addition, the issuance of a new permit does not imply that new construction projects will be directly launched after

the issuance of the permit as the latter remains valid for almost 5 years. Accordingly, the actual retreat witnessed in the

number of permits does not reveal slower activity on the short run but alludes to the dwindling confidence of contractors in the

future performance of the real estate market.

5.10 4.94

5.45

4.22

3.38

2011 2012 2013 2014 2015



S A L

Monthly Number of Construction Permits

Source: Orders of Engineers in Beirut and the North

Number of Construction Permits by November

Source: Orders of Engineers in Beirut and the North

The progress of construction loans during 2015 does not indicate an improving activity

Construction is considered a key sector in the Lebanese economy and the second largest loan beneficiary in the private sector.

Thus, construction loans made up 18% of the total loans granted in the financial sector up to July 2015. The value of these

loans amounted to $9.99B by July, rising by 4.08% since year-start. Similarly, the number of borrowers also rose by 5% since

the beginning of 2015 to hover near the 13,000 mark by the end of July 2015. Accordingly, the average loan value per borrower

revealed a marginal 1.2% year-to-date downtick to $768,462 by July 2015.

However, the increase in construction loans is not an indication of better activity in the construction industry but is rather linked

to the changing aspects of the construction sector starting 2007.

900

1,100

1,300

1,500

1,700

1,900

2,100

Monthly Construction Permits 6-Month Moving Average

16,892 16,681

15,407 15,355

13,727

6%

-1%

-8%

0%

-11%

0

4,000

8,000

12,000

16,000

20,000

2011 2012 2013 2014 2015

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Number of Construction Permits Growth Rate (In %)



S A L

$826,283

$810,192

$814,624

$777,643

$768,462

2011 2012 2013 2014 Jul-15

7.13

8.14

9.18 9.6 9.99

13%

14%

13%

5% 4%

0%

2%

4%

6%

8%

10%

12%

14%

16%

2011 2012 2013 2014 Jul-15

0

2

4

6

8

10

12

Construction Loans (In $B) Growth Rate (In%)

Value of Construction Loans (In $B) Average Value per Construction Loan

Source: BDL (credit to the private sector)

As a matter of fact, when the real estate market was witnessing a period of pent up demand between 2007 and 2011,

developers were selling their projects on blueprint and trying to increase their stock to meet the high levels of demand that

outpaced by far the supply.

After the market slumped following the Arab Spring in 2011, the leading players of the industry were the only ones to survive

the downturn as they were capable of self-financing or resorting to construction loans provided by the banking system. Smaller

players had to escape the market as the process of selling became much harder and their access to construction loans became

tougher given their poor standing in the market.

In addition, the increase in the value of construction loans is taking place at slower pace. Yearly growth rates of construction

loans’ value seemed to be undergoing a bearish trend from 14% in 2012 to 13% in 2013, 5% in 2014 and 4% by the end of July

2015.

Adapting in the Meantime to the Changing Demand

Despite the slackening demand for residential apartments, contractors were still trying in 2015 to adapt to the shift of realty

buyers’ preferences towards smaller and more affordable apartments outside Beirut.

Despite the slight slip in 2015, the decreasing trend of the average area authorized per permit, which started right after 2010,

can better reflect the real change in contractors’ perspective in favor of residential projects, which required smaller plots of

land. While the average area per permit barely inched down from 818 sqm/permit by November 2014 to 804 sqm/permit by

November 2015, it is still 18% lower than that recorded by November 2010.

Construction permits issued in 2015 revealed that contractors took into consideration the regional preferences of the changing

residential demand when applying for new permits. Therefore, Mount Lebanon remained the region to uphold the biggest

stake of construction permits by November 2015 (42% of the total number of construction permits) given its proximity to the

capital Beirut and its relatively lower prices. South Lebanon and Nabatiyeh followed with respective shares of 17% and 13%.

Negotiation is the Name of the Game with Real Estate Prices Given the bearish activity since 2011, price negotiations characterized a buyer’s market where transactions were actually being

concluded at discounted prices well below the originally listed unit prices. After reaching their peak in 2011, levels of prices

seemed to have stagnated, yet sellers became more open for negotiations; especially when it comes to large apartments. In

reality, considerable discounts, which can reach up to 20% of the unit price, were being offered to serious buyers.



S A L

As a result, the real prices of units sold are expected to be much lower than those of 2011, even if the overall transaction value

in 2015 averaged that of the previous year. This could be partly linked to the changing regional preferences of buyers, but not

to the altering market dynamics. Actually, the average regional value per built unit transaction almost stagnated when

compared to the previous year as it slipped by a marginal 0.1% y-o-y to $141,556.

For instance, the survey of prices in Beirut represented in the annex table 3 shows that most of the prices in 2015 were lower

than those reported in 2013. This table is the only available information on the evolution between 2013 and 2015 of residential

prices in the neighborhoods of Beirut. Although we have several reservations on the survey, out of the 19 mentioned

neighborhoods in Beirut, 11 witnessed declines in the average price of SQM between 2013 and 2015, while 7 revealed price

increases and only one showed no change in price. The registered price increases mainly resulted from the renovation of

numerous old neighborhoods in the capital. Though, it is worth mentioning that the highest prices were registered at the

seafront of the capital Beirut. From Manara to Ramlet el Baida, average prices rose around 10% on average between 2013 and

2014 to vary between $5,500 and $6,300 per SQM.

Still, the average variation of the listed prices in the 19 selected neighborhoods was -2.2%, supporting our views of

considerable discounts on actual transaction prices ranging from 15% - 20%.

Developers Tried to Resort to Retail and Office Markets to Offset and Hedge the Losses Occurring in the

Residential Segment

The slowdown in the residential market, amid a mismatch between demand and supply, pushed investors towards commercial

projects that seemed more income appealing; given the shortage in stock within the market. The real estate consultant

RAMCO lately released a publication about office buildings under construction in Beirut. The study enclosed 37 office projects

with a total office space representing 195,694 square meters (sqm) under construction across the capital. Moreover, this

census reflects a 32% increase in office construction from September 2013 due to the stagnation of the residential market in

Beirut, where developers are becoming progressively more oriented towards the office market. Worth mentioning that prices

ranged from $3,500 per sqm to $7,500 per sqm across the capital depending on the location and if the offices are offered core

and shell or just with basic finishing.

Ashrafieh constituted the neighborhood enclosing the largest number of projects with 23 projects (67% of total projects area)

and with a total area tallying about 130,752 sqm. Quotes can vary from $3,500 per sqm all the way to $5,500 per sqm. With the

lowest number of office developments across Beirut at 5 projects (22% of total project area) covering an area of 43,331 sqm,

RAMCO revealed that Beirut Central District’s (BCD) prices hovered between $5,500 per sqm to $7,500 per sqm. Finally in the

Western region of Beirut, the publication exposed 9 projects (11% of total project area) summing to 21,611 sqm under

construction, with prices floating between $5,000 and $5,500. In terms of average size, BCD held the most spacious projects at

8,666 sqm per project while Ashrafieh and Western Beirut were at 5,684 sqm and 2,401 sqm, respectively.

The Rental Commercial Market in Focus

While maintaining their high levels, commercial rentals in Lebanon showed substantial declines in 2014. In details, and amid a

slowdown in the residential market, investors were more oriented towards commercial projects. Those investments have

become more income appealing in terms of sales and rents given the shortage in stock.

Cushman & Wakefield latest annual report showed that retail rents in the main Lebanese locations hovered between $500 -

$1,600 per SQM/Year, however considerably declining (between 15% and 30%) during 2014. Yet, ABC Centre Achrafieh, which

was 2014’s most expensive retail location in Lebanon, preserved 2013’s level of $1,583 per SQM/Year.The Lebanese mall

ranked 37th among 64 countries and stood just after Biblioteksgatan - Sweeden ($1,636 per SQM/Year) and Rue Neuve -

Belgium ($1,750 per SQM/Year). ABC Achrafieh rental was higher than that of Grand Rue – Luxembourg ($1,500 per SQM/Year)

and Shopping Centre - Kazakhstan ($1,330 per SQM/Year).

On the local front, Beirut Central District and Rue Verdun rental prices followed ABC Centre Achrafieh at respective prices of

$792 per SQM/Year (a 16.7% yearly decline) and $633 per SQM/Year (a 20.0% y-o-y drop). Rue Hamra and Kaslik ranked fourth

in Lebanon with similar rental price of $554 per SQM/Year.



S A L

Separately, commercial areas seemed to be reshuffling in Beirut’s main streets hand in hand with the changing perception for

hotspot locations of the Food & Beverage (F&B) industry’s operators. According to RAMCO, 4 examples can clearly reveal the

new trend that is painting retail locations such as Maarad, Gemmayze, Mar Mikhael and Badaro areas.

Starting with Maarad Street, the report showed that the previously known tourist hotspot street was severely affected by the

deteriorating tourism activity especially due to the mass-marketing strategy used in the F&B industry that only focuses on a

targeted clientele. In details, restaurants that used to be located in Maarad Street were mainly depending on GCC tourists and

the Lebanese diaspora that were nowhere to be seen in the last few years. This pushed several restaurants such as Le Relais

de L’Entrecôte and Casper to leave the area despite the expected declining trend in rental values that should not exceed the

average $300-$400 range per SQM per Year.

Similarly, and after standing as Beirut’s top nightlife destination, Gemmayze Street lost its momentum with restaurants and

pubs relocating towards new areas such as Makdessi Street in Hamra, the neighboring Mar Mikhael Street and Uruguay Street

in Beirut Central District (BCD). RAMCO declared that the resulting slump in rentals sent values in Gemmayze near those of

2005 and 2006, at an average of $200-$300 per SQM per Year.

In the last 2 years, average rentals almost doubled in Mar Mikhael as the area became one of the most desired destination for

entertainment. F&B operators are willing to rent units in the location despite the substantial jump in prices that reached an

average of $400-$700 per SQM per Year.

Lately, Badaro is standing as new home for nocturnal clientele after restaurants and pubs started opening their doors there.

The unexpected interest in the neighborhood mainly took place following the rising rental prices in Mar Mikhael, and the

accessibility of Badaro street from several areas across Beirut which could easily bolster the targeted clientele. Accordingly,

rentals in Badaro are considered affordable for F&B’s professionals as they are currently standing around $300-$400 per SQM

per Year with high expectations of growth in the coming period.

The Lebanese Land Market: Is Investing in Earth Still the Best Investment on Earth?

Demand for Land Parcels in 2015: Worst Performance in 5 years

The overall negative investment sentiment kept on dictating raw land activity in 2015. However and besides the repercussions

of frail political and security environment, the scarcity of empty and well located parcels for construction weighed over raw land

transactions in 2015. The available land plots were either substantially expensive, unmanageable or considerably remote from

the capital Beirut which made them unappealing for real estate investors.

Constituting 31% of total real estate transactions, land transactions saw their number fall by 28.2% between November 2011

and November 2015. It is worth noting that the number of raw land transactions fell by a yearly 15.1% by November 2015 alone

to reach 37,062, which is almost equal to the total decrease over the prior 4 years.

Number of Land Transactions by November

Source: Lebanese Registry Cadastre

51,604

44,022 42,701 43,646

37,062

2011 2012 2013 2014 2015



S A L

In terms of value, the total worth of land transactions stood at $2.32B in the first eleven months of 2015, down from $2.81B by

November 2014. Raw land plots located in Metn, Beirut and Baabda grasped together more than 40% of total value. This could

be explained by the fact that most developers widened their interest to include, not only Beirut, but also its suburbs when

undertaking residential and retail projects.

Unlike residential prices, land pricing succumbed to the market’s waning activity. Correspondingly, the average value per land

transaction went down from $64,387 by November 2014 to settle at $62,626 by the end of November 2015. Beirut revealed the

highest average per land transaction at $2.21M by November 2015, edging down by 23% from the same period a year earlier.

Metn came second in terms of prices, posting an average value per land transaction of $156,852 by November 2015, slipping

from a previous $161,281 by November 2014. The average value per land transaction in Baabda ranked third at $134,468 by

November 2015 compared to $159,382 over the prior year.

Unsurprisingly, foreigners’ interest in Lebanese raw land investments remained low in 2015, yet timidly improving to 2011 and

2012’s levels. It is essentially due to the long process needed for a foreigner to get an approval to acquire a land. After reaching

0.4% by November 2014, foreigners share of the total number of land transactions inched up to 0.6% in the first eleven months

of 2015, the equivalent of 236 transactions worth $33.53M. Hence, the average value per land transaction for foreigners was

more than twofold that of Lebanese buyers. As for the top 3 locations of foreign land transactions, Zahleh took 20% of the

total, while Aley and Shouf saw respective shares of 17% and 11%, respectively.

The regional breakdown revealed that the bulk of land transactions was concentrated in Cazas relatively renowned for their low

prices such as Tripoli (19% of the total number), Baalbek (13% of the total), Zahleh (9.2% of the total) and Tyr (8.9% of the

total).

As the data previously revealed, Lebanese citizens were mostly interested in raw land transactions outside Beirut due to

several reasons:

The limited financial means of the majority of the Lebanese households pushed developers to build residential

projects outside Beirut where costs are lower such in Tripoli, Metn and Baabda.

Some of the Lebanese households bought raw land plots where they can build their apartments themselves at lower

expenses.

Speculation could be another reason for Lebanese citizens to favor cheap raw land plots, which are usually remote

from Beirut, on the expense of other real estate investments. Those buyers are mostly hoping for any major touristic

project to take place near the raw land they bought or maybe an infrastructure development, which could boost their

land price substantially.

Annex Table 1: Average Prices in Selected Beirut Neighborhoods

Average Price Per

SQM

Average Apartment

Size (SQM)

Average Apartment Price

Ramlet el Baida $ 6,750 414 $ 2,794,500

Manara $ 6,250 424 $ 2,650,000

Beirut Central District $ 6,000 333 $ 1,998,000

Ain el Mreisseh $ 5,750 412 $ 2,369,000

Raouche - Sakiet el Janzir $ 5,400 352 $ 1,900,800

Sursock $ 5,150 297 $ 1,529,550

Saifi $ 4,900 179 $ 877,100

Verdun - Ain el Tineh $ 4,575 313 $ 1,431,975

Clemenceau - Kantari $ 4,450 329 $ 1,464,050

Tallet el-Khayat $ 4,250 319 $ 1,355,750

Furn el Hayek $ 4,250 373 $ 1,585,250



S A L

Georges Haimari - Sassine $ 4,200 358 $ 1,503,600

Caracas $ 4,125 228 $ 940,500

Koraytem $ 4,100 295 $ 1,209,500

Hamra $ 4,000 217 $ 868,000

Gemmayzeh $ 3,875 336 $ 1,302,000

Sanayeh - Spears $ 3,850 222 $ 854,700

Mar Mitr $ 3,375 199 $ 671,625

Sodeco - Monnot $ 3,350 287 $ 961,450

Mar Mikhael - Kobayate $ 3,275 169 $ 553,475

Badaro $ 3,200 200 $ 640,000

Sioufi - Hay Sirian $ 3,100 202 $ 626,200

La Sagesse - Geitaoui $ 3,000 164 $ 492,000

Grand Lycee - Hotel Alexandre $ 2,975 148 $ 440,300

Rizk Hospital - Nazareth -

Corniche du Fleuve

$ 2,950 206 $ 607,700

Source: RAMCO, Le Commerce du Levant, BLOMINVEST

Annex Graph 2: Average Value per Built Real Estate Transaction per Region by November

Source: Lebanese Cadastre Registry

141,556

39,446

40,811

123,234

71,092

85,954

75,812

143,483

109,934

350,084

40,246

159,748

46,807

172,795

89,143

50,419

47,011

73,163

$141,652

$46,824

$45,227

$114,983

$78,089

$81,644

$64,163

$133,229

$105,230

$358,909

$43,616

$154,551

$54,479

$158,823

$88,090

$49,941

$51,652

$70,334

Regional Average

Marjeyoun

Akkar

Aley

Tyr

Zahleh

Rachaya

Jounieh

Byblos

Beirut

Baalbek

Baabda

Nabatiyeh

Metn

Shouf

North 2

North 1

South

2014 2015



S A L

Annex Table 3: Compiled Average Price per SQM in Selected Neighborhoods in Beirut in 2013 and

2015

Source: BLOMINVEST, INFOPRO, RAMCO, Le Commerce du Levant

Average Price Per

SQM in 2013

Average Price Per

SQM in 2015

% Change

Ramlet el Baida $ 6,300 $6,750 7.1%

Manara $5,500 $6,250 13.6%

Beirut Central District $ 6,750 $6,000 -11.1%

Ain el Mreisseh $6,000 $5,750 -4.2%

Raouche - Sakiet el Janzir $6,100 $5,400 -11.5%

Sursock $5,150 $5,150 0.0%

Saifi $5,000 $4,900 -2.0%

Verdun - Ain el Tineh $5,000 $4,575 -8.5%

Clemenceau - Kantari $4,300 $4,450 3.5%

Tallet el-Khayat $ 3,900 $4,250 9.0%

Furn el Hayek $3,900 $4,250 9.0%

Georges Haimari - Sassine $3,750 $4,200 12.0%

Koraytem $4,300 $4,100 -4.7%

Hamra $4,700 $4,000 -14.9%

Gemmayzeh $4,350 $3,875 -10.9%

Sanayeh - Spears $4,275 $3,850 -9.9%

Sodeco - Monnot $4,100 $3,350 -18.3%

Sioufi - Hay Sirian $2,900 $3,100 6.9%

Rizk Hospital - Nazareth- Corniche

du Fleuve

$3,200 $2,950 -7.8%

The Lebanon Brief

Page 21 of 21

Your Investment Reference

S A L

Research Department:

Sobhi Chatila [email protected]

Lana Saadeh [email protected]

Riwa Daou [email protected]

Marwan Mikhael [email protected]

the lebanon brief...2016/08/13 · the lebanon brief page 1 of 21 issue 955 week of february 08-13,...

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