Lebanon's real estate sector could be set back a decade

http://www.gulfnews.com/business/Real_Estate_Property/10053160.html

Dubai: Israel's military offensive in Lebanon will make UAE property companies think twice about investing in the country's real estate sector, according to experts.

A host of the UAE's biggest names in property have pumped millions of dollars into residential projects in Lebanon, with many more eyeing possible investment.

Although the country's real estate sector has bounced back from years of conflict and the killing of former prime minister Rafik Hariri, experts think the nature of the escalating conflict between Israel and Lebanon could have lasting results.

Iseeb Rehman, managing director of Sherwoods Independent Property Consultants, said outside investment into Lebanon's real estate market could dry up if Israel's military offensive continues.

"This will almost certainly have a huge impact and could put the market back 10 years," he said.

Experts said the Hariri killing did not affect the investment flow into Lebanon as it was a domestic political issue. But the fact that Lebanon's neighbour displayed an ability to cripple the county's main transport artery could have devastating consequences.

Dubai-based Damac Properties made the UAE's most recent foray into Lebanon's real estate market, launching the $150 million La Residence by Ivana Trump, a 27 storey luxury residential tower planned for the intersection of Omar Daouk and Fakhreddine streets in Beirut's downtown area.

Despite indications that Israel's military offensive in Lebanon could be prolonged, a defiant Peter Riddoch, CEO of Damac Properties, said the company's strategy of investing heavily in the country will not be swayed.

"Economic growth and investment in Lebanon will continue in the long-term regardless of short-term political issues," he said. "We are not going to change our commitment to Lebanon. We have a plan for the country and we are confident of seeing it through.

"All indications are that this will have no effect on the La Residence," he added.

Riddoch claimed the company has received huge recent interest in the project, with 40 per cent of unit receiving confirmed sales and 30 per cent reserved.

"We have had no telephone calls from investors saying they wish to withdraw," he said.

The La Residence launch followed April's announcement by privately-owned Abu Dhabi Investment House (ADIH) of the $600m mixed-use Beirut Gate project.

Meanwhile, Deyaar Properties, a subsidiary of Dubai Islamic Bank, has invested in two luxury residential developments near Beirut, while UAE-based Reef Real Estate recently launched the $20 million Bhersaf Tourist Village in Bhersa, a mountainous area outside Beirut.

UAE companies including Desert Dream Real Estate and the Illyas and Mustafa Galadari Group weighed up potential investment into Lebanon at the annual Dream Development and Real Estate expo in Beirut.

I think the Lebanese are more resilient than that. They managed to live with 15 years of civil war.

It will be hit of course but not sure how much. To my surprise, when I was running down to get some water supplies I still saw people building the Grand Hayatt Hotel, lol I was REALLY surprise, it seems like nothing is happening.

Dont worry. Beirut is largely untouched and will likely stay immune from the crisis. Once this is all settled, solidere will be back on its feet once again. They said the same thing after the Hariri assassination and look how the economy bounced back.

Beirut! is back !!!!!

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Dont worry. Beirut is largely untouched and will likely stay immune from the crisis. Once this is all settled, solidere will be back on its feet once again. They said the same thing after the Hariri assassination and look how the economy bounced back.

First of all, I am glad to hear that you are safe and sound, but I am a bit shocked at what you are saying.

While northern Beirut is largely untouched (with the exception of the lighthouse and the port), southern Beirut is devastated as is the airport. I'm sure you know that.

You cannot compare this situation with Hariri's assassination.

Hariri's assassination involved the brutal assassination of a great politician and a big crater in the street.

This Israeli war of terrorism against Lebanon is devastating the country's infrastructure.

Bridges have been destroyed, tunnels have been destroys, airports have been disabled, seaports have been disabled, communication towers have been destroyed, etc. Billions of dollars worth of destruction estimated. Take a look:
http://www.dailystar.com.lb/article.asp?edition_id=1&categ_id=2&article_id=74049

Keep in mind that the airport alone will be out of service for several months. To replace the damaged concrete slabs on the runway is a very meticulous, expensive, and time consuming process. That's why runway construction is very costly and requires special expertise. It's not like building a highway. The fuel storage tanks will take a while to be rebuilt as well. Without fuel, you cannot have airplanes fly in and out.

Without an airport, Lebanon is effectively caught off from the world.

The investment boom did not begin until Lebanon had rebuilt a fair amount of intrastructure. Investment doesn't come without infrastructure and the infrastructure needs to be developed by the government. God knows how the government is going to rebuild all that has been destroyed and how long it will take when the government has $36 billion of outstanding debt.

Remember that this time Lebanon does not have Rafic Hariri.

I am not trying to put you down, but the Beirut boom is gone until the infrastructure is rebuilt and it will take many years to rebuild what the Israeli terror machine has destroyed in a few days.

Anyways, now is not the time to think about this issue.

Human lives are what count and innocent people are being killed by the dozens every day by the Israeli terror machine.

^^ Please calm down. I was only trying to remain positive about the horrific situation. I know you were just in Beirut but I am here now and I can tell you that things arent as devasted as they may seem on television or in the news. I dont need to see pictures because I saw the destruction first hand and a bridge was actually blown up right in front of me. Its sad, its shocking, and its surreal... but as for the boom, it wasnt coming from the southern Beirut suburbs and thats a fact. Many people are under the impression that Beirut itself is undergoing massive bombing and Im just trying to lighten the mood by saying that Ras Beirut, downtown, east Beirut, etc have been spared. I really feel for the people of Dahyeh and am disturbed by what has happened to the infrustructure there as well as along the southern highway and south lebanon, but people shouldnt give up hope and act as though Beirut is being destroyed.
Just have faith, we rebuilt before many times and we will again. As for the airport my friends father who works there and has high-level connections said there has been very minimal damage and repairs will only take a matter of days. The only problem is they cant begin repairs until the Israeli offensive is over. Hopefully that will be soon... in the meantime keep praying for Lebanon and never give in to the media propaganda that loves to say the country "has been set back 20 years"

my father invested hunder thousands in the apartment and the UAE invested billions :bash:

^^ Maybe it's why many Arab countries suspended their unconditional support for Hezbollah these days (at least I've herad so).

@Beirut!: When it comes to how massmedia show the current situation in Beirut, I was horrified when I saw a Hiroshima-like city on the newspaper cover picture (a gigantic crater and skeletor-like building arround it), but a few seconds lates every SSC forumer would discover the skeletor-like building are untouched buildings under construction, so you know how massmedia business works :lol:
And if you look on military force angaged in the conflict you must admit that even southern Beirut is not so as much devastated as you would fear (but of course much more than you would prefer).

And when I watched news on Dubai TV (so bad I do not speak Arabic) they had a headline news starter showing city being in total ruine (I bet it was pictures from Beirut short after civil war). So now imagine what may people think if they are provided with such information only).

I've heard that last night in Beirut was relatively calm and starting from today morning thousands of people were returning to the city (there were many traffic jams on the roads leading from the north to Beirut).

Northpole they show you 1 block of hizballa hq's as if its the whole city, 95% of beirut is untouched.. dont fall for their propaganda.

If we count Lebanon airport, sea port and power plant too, so we will have those 5% of devastation, which is very high number (those who witnessed 5% of cioty devastation will agree). City with devastation over 50% is inhabitable in practical sense. So I hope these 5% are if we count those big infrastructure.
The problem is we cannot still see end of the conflict. Today the death toll was 30 Lebanese people and there was farther bombing of the city, so the "optimistic" 5% in few days may be only history :bash:
If Israel really wants to keep bombing to the moment Hezbollah will stop targeting Israeli cities, Beirut will be ruined :ohno: (it's said that Hezbollah used up to now only 1,500 of their 12,000 missiles and Israel officials say Hezbollah already used 1/3 of its arsenal :sly: ).

I think the situation already reached the critical point. If there will be some calming, Lebanon/Beirut will go back to the trails of fast developement. If not, many investors (and tourists of course) will not return here in next few years :(

BTW. I dont buy everything what media say (especially European and Arabian ones). We Poles are used to check many information sources starting from the time of communistic regime and also today you have to read at least 3 newspapers to get the whole picture on every issue :lol:

there's a great article by remi khoury in the daily star about defying (israeli) terrorism by continuing to live life as usual. same logic as the american government's urges to americans to 'live life as usual' post 9-11.
that lebanon's being bombed again and hariri(possibly the chief architect of reconstruction in lebanon) is lying in downtown beirut, certainly doesn't paint a pretty picture.
still, i love beirut, always will and i believe there'll be another hariri

in the daily star 2day it said Investors aare still going to invest in lebanon when this blows over n all the major projects will start again when this coflit is over

my father invested hunder thousands in the apartment and the UAE invested billions :bash:

DID YOU SERIOUSLY JUST MAKE THAT COMMENT???? BABIES ARE HAVING THEIR BRAINS BLOWN OFF AND YOUR DADDY'S THOUSANDS OF DOLLARS ARE WHAT YOUR WORRIED ABOUT????

^^ there are priorities ;)

Lebgurl, what about your comment? the one about throwing out the palestinians into some african desert or whatever the hell it was you said!

check the record ... I'm not the one who said that sweetie ...
and btw, I just came from a pali rally that lasted 4 hours ... just in case u still think im a racist

check the record ... I'm not the one who said that sweetie ...
and btw, I just came from a pali rally that lasted 4 hours ... just in case u still think im a racist

You still blaimed the palestinians generaly for the fact that they "only brought problems to lebanon"...

im not gonna answer because it will most definetly lead to a fight ... and as far as im concerned ur on my side, so I'll leave it at this.

Ok. I'm sorry then.