Real Estate Sector in Lebanon in 2012 | Outlook by Plus Properties
Mr. Chehwane believes the real estate sales in Lebanon will increase once the situation in Syria improves. More and more people are coming to Lebanon but they are not investing (yet). The main buyers of real estate in Lebanon are nationals who live abroad and come for the summer.
Interview with George Chehwane, Chairman of Plus Properties
What is your overall assessment of the real estate sector in Lebanon?
I am not worried about the future of the real estate sector in Lebanon. Despite the fact that it witnessed a standstill in specific areas this year, there is no doubt that Lebanon has built a solid ground for real estate and tourism sectors between 2008 and 2009.
I strongly believe that the setbacks we experienced in 2012 will vanish and sales will increase with the enhancement of the overall situation in the region.
Once buyers and investors come to the conclusion that the Syrian crisis won’t escalate further and affect Lebanon, sales will improve. We are hoping that the interventions carried out by the 
United Nations as well as other international bodies, in addition to the negotiations held with the government on the one hand and the opposition on the other will eventually pay off and the situation in Syria would calm down. In Lebanon, though, the situation is well contained. The Lebanese army managed to control the instability in Tripoli and visitors are not deterred from spending their summer here.
Tyre Bay, Zaytouna Bay, and the boat show are buzzing with Arabs and Europeans. Beirut airport marked an increase of 25% in the number of passengers compared to the same quarter of last year. It is worth noting, nonetheless, that although people are coming to Lebanon, they are not investing because investment requires security and safety.
The real estate sector mainly counts on Lebanese expatriates whose main purchases are made during the summer; given that this is the time they spend in Lebanon. Plus Properties is currently working on 30 to 35 substantial deals set to be closed this summer.
What in your opinion will be the driver of real estate sector in the future in Lebanon?
Taking prices into consideration, I believe that the trend would be towards small areas outside Beirut.
The real estate sector suffers from a major lack of statistics which hinders real estate developers from acquiring a clear vision of the market. Today, any project planning process in the real estate sector is largely undocumented, be it by the main players, the investors, or the banks.
Main buyers in real estate are Lebanese nationals, who live abroad and usually do not make any purchases during the winter; serious deals happen during summer, as this is the time they spend in Lebanon.
An analysis of the purchasing power in Lebanon, for example, would indicate that only 3-4% of the population can afford a property of more than $1.5 million; while 20% would afford paying $500,000 and 50-60% would afford paying $150,000-$200,000. However, due to the absence of accurate data, we cannot currently confirm that there is demand for 2000 properties worth $1.5 million in Lebanon.
Therefore, I strongly emphasize the importance of carrying out research and establishing an entity that would gather the necessary data and share it with developers and stakeholders.
Driven by this concept, several developers and other major real estate players are in the process of forming an “Association of Developers” in Lebanon. This association will be in charge of conducting market evaluation and providing real estate statistics and documentation.
How are you planning to market your real estate services and could you showcase one of your development projects that you would perhaps like to push in the media?
We adopted this year the same strategy we followed in 2011 which is based on accelerating the construction of our projects. Timely delivery is of essence in property development. Therefore, we strive to avoid delays and complete our projects within the specified timeframe.
Today, we are finalizing the groundwork of Plus Towers, one of our large projects in Solidere, Downtown Beirut. After the completion of seven underground stories, we will start rising with the off ground levels. Monteverde 81 is another premium project we are working on in the heart of Metn, the upper-class Monteverde area. This project, set to be delivered by the end of 2013, offers investors a very promising opportunity and buyers an exclusive lifestyle.
Our future plans embrace a project located in the Golden Area of Sin El Fil next to the upcoming City Center Mall. This project consists of small apartments and offices starting from 80 sqm.
I would like to mention that our current target market includes Syrians who are renting property in Lebanon. Having the same language, customs, and culture, Syrians feel comfortable in Lebanon and thus, tend to buy or rent properties here.
We have recently held the opening of the Sales Center in Downtown Beirut, an event that was attended by clients, bankers, brokers, and the media.
My last question is about media activity; are there any promotions that you will be implementing?
Group Plus, our media arm, is in the final stages of concluding an exclusive advertising contract on all Bahrain radio and TV stations. We are also expecting to acquire the exclusive rights for advertising spaces on Sheikh Zayed Road to add this to the 300 outdoor advertising spaces and billboards we currently own in Dubai.
As for Lebanon, Group Plus has once again won the exclusive advertising concession of the Rafiq Hariri International Airport advertising spaces.
All of these achievements that Group Plus managed to accomplish in Lebanon and the region reinforce the company’s ability to offer a full media package that includes radio and TV as well as outdoor and online advertising.