The real estate market is in danger … The reason for the flight of capital!

Under the title "Phoenix" real estate … down ?! "" For many years, the real estate market has been the downside of the rent economy, with all financing capabilities being in the form of Treasury bonds and real estate investment. rather than subsidizing the productive sectors and the living economy, "writes Yvonne Saibi in the Nadaa Al Watan newspaper.

Today, the sector has become "inflated" by the magnitude of the explosion, or even the "fragmentation", because of the fiscal policies adopted since the 1990s. With the disruption of the real estate sector What is the fate of the rest of the rental economy, especially the benefits for the Treasury?

This is not the first time that the Lebanese real estate sector is experiencing a serious crisis and a sharp drop in prices: apartment prices have already fallen by 50% in the mid-1990s. At the time, the real estate crisis There were two reasons: the first was the wave of optimism that had accompanied the period known as the reconstruction of Lebanon after the Taif agreement, which had sparked the first spark of the short-lived real estate revolution. Those who rushed to buy the apartments came back and sold them because of the increased emigration and alienation, which produced thousands of empty apartments. The second reason is that bank interest rates have risen to 35%. Investors therefore prefer to take advantage of their bank deposits instead of investing in real estate, a situation that is repeating itself today.

The real estate sector experienced a boom between 2007 and 2011. This resulted in a crazy rise in real estate prices, which started in Beirut and quickly spread to all Lebanese regions. . In 2008, real estate demand was slightly higher than supply, leading to unprecedented price increases. Stakeholders have justified the hysterical rise in prices by the scarcity of land suitable for construction, making the prices of the remaining undeveloped properties high. In addition, foreign investment contributed to the boom in this sector, in addition to the rise in oil prices, which culminated at the time, and the rising cost of raw materials used in the economy. construction. In early 2012, real estate developers began to complain about slowing demand after reaching the level of madness. Today, investments in real estate, especially in the building sector, are no longer a refuge for many, especially as prices are falling rapidly. Limits of 50% in certain areas, according to estimates by several observers. The question of falling prices is not on the agenda today. All members of the Bank of Lebanon, from commercial banks to real estate developers, have admitted that the market was suffering from a crisis that Lebanon had not known even during the war years.

"The real problem is that the real estate sector is running out of Lebanon's balance of payments and capital flight deficit, and Lebanon has exported $ 10 billion and $ 250 million over the last 18 months, which is equivalent to funds that Lebanon expects from Cedar over a period of more than one year.Higher interest rates will result in a decrease in all badets, including real estate, with higher interest rates leading to an increase in the servicing of public debt and the absence of foreign investment. Increase the operational costs and the cost of borrowing companies and contribute to the high cost of increasing unemployment and, as a result, the lack of domestic demand for real estate and apartments ", said investment strategist Jihad al-Hakim.
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