New study says Beirut property market offers plenty of bargains
Prices well below regional average

by the Daily Star

New study says Beirut property market offers plenty of bargains

BEIRUT: Beirut ranked 83rd globally in the average monthly rent for an apartment and the average per-meter cost for an apartment purchase, according to the Global Property Guide's annual report on real-estate investment trends worldwide. In terms of the monthly rent for a 120-square-meter apartment, Beirut placed sixth out of seven markets from the Middle East and North Africa (MENA) and 83 out of 115 ranked markets, said the guide's results, which were published in the latest edition of Byblos Bank Group's Lebanon This Week.

Beirut's average monthly rent of $1,154 came in markedly under the regional monthly average of $1,740 per month. Dubai topped MENA markets at $3,140 per month, while Cairo finished behind Beirut with $576 per month.

"Lebanon is still an affordable market, compared to the region," said Nassib Ghobril, head of research at Byblos Bank Group.

Global Property Guide's study is aimed at overseas investors weighing potential sites for buying real-estate properties with the intention of generating rental income, Ghobril added.

On the global chart, Beirut's rents placed just above those in Colombia's Bogota, Peru's Lima and Dakar. Finishing in the spots ahead of Beirut were San Jose in Costa Rica, Guatemala City and Roseau in Dominica.

The five MENA locales topping Beirut's rents were Amman, Tunis, Marrakesh, Tel Aviv and Dubai. However, the guide had difficulty getting figures for major cities in the Gulf region, Ghobril said.

The guide's numbers were based on high-end apartments in upscale areas which would attract foreign investors or renters. Figures for Beirut, for instance, cover Achrafieh, Beirut Central District, Hamra, Jnah, Ramlet al-Baida, Ras Beirut and Verdun. The guide looked into only resale apartments and houses for the survey and did not factor in newly built and pre-sale property prices. The apartments have to be in top condition and have been refurbished or redecorated within the past five years.

Beirut recorded an identical finish of 83rd globally and sixth regionally in the category of price per square meter for purchasing a 120 square-meter apartment. In that table, Beirut finished ahead of the Seychelles' Victoria and Lagos. Costa Rican capital San Jose and Moldova's Chrisinau placed immediately ahead of Beirut. Regional standings nearly copied those in the rental rankings, with Beirut and Cairo bringing up the rear.

Beirut's average purchase price was $1,237 per square meter, barely half the regional average of $2,376 per square meter. Tel Aviv registered the top MENA price at $5,021 per square meter, while Cairo's cost was $406 per square meter.

The guide added that rental laws in Lebanon were balanced between landlord and tenant, while legislation favors renters in Egypt and Qatar and favors owners in Tunisia, Syria, Oman, Morocco, Jordan, Iran and Bahrain.

The guide called Lebanon's rental-income tax low, as income tax on rental is progressive. The tax rate is approximately 2 percent above a minimum of $13,200 annually, while deductions can add up to some 30 percent of gross income. In addition, Lebanon does not charge capital-gains taxes and gives similar tax treatment to residents and nonresidents. Inheritance taxes are also levied at progressive rates from 3 percent to 33 percent, the guide added. - The Daily Star