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Lebanon: Demand for real estate declines by 63 per cent in 5 years

Byblos Bank Real Estate Demand Index increased by nearly 80 per cent between 2008 and 2010

The Byblos Bank Real Estate Demand Index in Lebanon plunged by 62.8 per cent compared with the highest ever level, recorded in April 2010, and current levels.

The Index’s results show that real estate demand started to increase tangibly in 2008 and accelerated in 2009 and 2010, with the Index increasing by nearly 80 per cent during this timeframe, Aliqtisadi reports.

The Byblos Bank Real Estate Demand Index posted an average monthly value of 60.1 points in the second half of 2007 and rose to 73.8 in 2008, 99.8 in 2009 and 108 in 2010, the highest annual value on record.

However, the Index fell by 40.2 per cent in 2011 to 64.6 and by an additional 33 per cent to 43.3 in 2012. It then rose to 51.5 in 2013, reached 35.6 in 2014 and 40.3 in the first nine months of 2015.

The index recorded its highest level of 157 in April 2010, while it recorded its lowest level in January 2015 at 24.3.

It is worth mentioning that the Index is a measure of local demand for residential units and houses in Lebanon. The real estate sector is a key engine of the Lebanese economy and accounts for approximately 14 per cent of GDP.