Beirut Faces Flat Glut After Boom?
In 2012, a total of 100 residential real estate projects were completed, the Property advisory firm RAMCO mentioned. It included 65 projects with an asking price of at least $2,800 per square meter.
A total of 18 out of the 65 residential projects have been sold out, it said. The 65 projects have 1,179 units, of which 217 units or 18.4% are still available on the market, representing a total of 404,546 of built-up area (BUA), of which 71,357 BUA or 17.6% are still available on the market.
The value of the remaining stock is estimated by RAMCO at $397.8 million.
The take-up ratio, or the ratio of sold BUA to total BUA, was 82.4% in 2012, RAMCO said, noting that projects completed in 2012 were launched between 2008 and 2009 and, therefore, benefited from a booming market.
“Last’s take-up ratio could be inflated by the high level of sales during the 2008-2010, as the volume of transactions was lower in the years and 2011 and 2012
The take-up ratio in 2012 was slightly below the ratios of around 85% posted during the real estate boom years.”
RAMCO said that it needs to monitor the market to determine whether the reduction in the ratio is a long-term change in market trends or a temporary phase.
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