Syria
Main | Residential | Commercial | Hospitality | Retail
The Syrian Property Market
Source: Oxford Business Group
Timing is right to reform the economy and real estate sector
As Syria begins a program of long-overdue economic reform designed to compensate for declining oil revenues, the real estate market has been one of the first sectors to benefit. The lifting of ownership restrictions and foreign direct investment-friendly incentives have encouraged international developers to the market, enticed by the current appetite.
Real estate demand has surged, due to an influx of Iraqi refugees and high demand from the expatriate markets, which has also resulted in rapid price inflation. The market has also benefited from an increasing number of Syrians who are keen to spread their investment over a number of sectors, instead of depending on the health of the banking sector.
According to the latest government statistics, licenses granted for residential construction increased from 4,752 in 2000 to 47,075 in 2005. This represents a total area of construction increase from 1.81m sq. metres in 2000 to 16.4 sq. metres by the end-2005, a compound annual growth rate (CAGR) of over 55%.
Despite this, the value of construction remains at a comparatively minor 3.9% of GDP ($1.2bn). Government activity had previously dominated the real estate sector, and while the government infrastructure development still accounts for most of Syria's construction, the last two years have marked the real beginning of foreign investment in large development projects.
The latest update in the mortgage market is contained in the newly approved measure, Law No. 17 of 2007, which is expected to bring significant development in the real estate market. The new law will reduce the mortgage finance rate and extend loan maturity, as well as allow expatriates to own two housing units, one as residential and the other as a vacation house. These changes have made the market much more attractive to both foreigners and Syrians.
Key developers
International names and tenders have been steadily entering the Syrian market, encouraged by an initiative form the tourism development authorities to promote major mixed-use projects in the newly designated prime investment areas. A new investment law has further liberalized the investment regime, creating a one-stop shop and putting foreign and domestic investors on a more even footing.
A flurry of activity by a number of large developers has brought real estate potential to the fore, with Majid Al Futtaim, Emaar and Bin Laden Group all announcing major in Damascus's western suburbs, as part of the government-driven master-plan to develop the area for luxury live-work-play use.
Main | Residential | Commercial | Hospitality | Retail
The Syrian Property Market
Source: Oxford Business Group
Timing is right to reform the economy and real estate sector
As Syria begins a program of long-overdue economic reform designed to compensate for declining oil revenues, the real estate market has been one of the first sectors to benefit. The lifting of ownership restrictions and foreign direct investment-friendly incentives have encouraged international developers to the market, enticed by the current appetite.
Real estate demand has surged, due to an influx of Iraqi refugees and high demand from the expatriate markets, which has also resulted in rapid price inflation. The market has also benefited from an increasing number of Syrians who are keen to spread their investment over a number of sectors, instead of depending on the health of the banking sector.
According to the latest government statistics, licenses granted for residential construction increased from 4,752 in 2000 to 47,075 in 2005. This represents a total area of construction increase from 1.81m sq. metres in 2000 to 16.4 sq. metres by the end-2005, a compound annual growth rate (CAGR) of over 55%.
Despite this, the value of construction remains at a comparatively minor 3.9% of GDP ($1.2bn). Government activity had previously dominated the real estate sector, and while the government infrastructure development still accounts for most of Syria's construction, the last two years have marked the real beginning of foreign investment in large development projects.
The latest update in the mortgage market is contained in the newly approved measure, Law No. 17 of 2007, which is expected to bring significant development in the real estate market. The new law will reduce the mortgage finance rate and extend loan maturity, as well as allow expatriates to own two housing units, one as residential and the other as a vacation house. These changes have made the market much more attractive to both foreigners and Syrians.
Key developers
International names and tenders have been steadily entering the Syrian market, encouraged by an initiative form the tourism development authorities to promote major mixed-use projects in the newly designated prime investment areas. A new investment law has further liberalized the investment regime, creating a one-stop shop and putting foreign and domestic investors on a more even footing.
A flurry of activity by a number of large developers has brought real estate potential to the fore, with Majid Al Futtaim, Emaar and Bin Laden Group all announcing major in Damascus's western suburbs, as part of the government-driven master-plan to develop the area for luxury live-work-play use.
Main | Residential | Commercial | Hospitality | Retail
Advertisement
Syria Cities:
