A healthy market with strong fundamentals has led real estate developers in Lebanon to emphasize development of luxury apartments, villas, and towers, which blend contemporary designs with rich cultural heritage. The preservation of the traditional environment is the mainstay of developers and continues to be central in the majority of their projects. Additionally, each of the new developments has unique value added features providing owners with elegant homes that meet high standards.
Market segment
Some developers have anticipated that the market need will shift during the financial crisis to more affordable apartments rather than high-end luxury. This has induced them to consider targeting this market segment. Chahe Yerevanian, chairman of Sayfco, explained that the company has changed its targeted segment according the changing market conditions. Historically, Sayfco focused on middle-income housing, where prices ranged between $36,000 and $90,000 at that time. Later, Sayfco switched to mid-sized luxury apartments priced between $250,000 and $500,000.
“We switched because we gained many GCC clients,” Yerevanian said. Afterwards, when the market boom began, extremely high-end products were the trend. One example is the Clouds project with prices ranging from $2-9 million, Yerevanian explained. Now, with the financial crisis at hand, Sayfco has gone back to the more affordable mid-sized luxury apartments expecting investors to be less keen to invest very large amounts of money in property.
The developer Byblos Real Estate Investment (BREI) is more diversified with their plans, which include targeting many market segments at the same time. “BREI’s plan is to create several brands under its umbrella, each having its own identity and developing products for a specific segment of the market, whether they are high end or middle class clients,” explained Antoine Al Khoury, general manager of BREI. Accordingly, BREI also has plans to target the Lebanese middle class, in terms of “the size of apartments, location of buildings, or building specifications,” in order to meet the upcoming market demand.
On the other hand, Greenstone real estate developers concentrate on “couples and families looking for high-end luxury apartments in prestigious areas in Beirut,” explained Sandro Saade, co-general manager of the company. Additionally, Greenstone does not feel the need to diversify its targeted segment due to the current situation. “Greenstone did not feel an impact on its projects, since each [of them] holds unique quality specifications and niche positioning out in the market,” said Saade.
Preserving cultural heritage
Experts and developers agree that preserving the Lebanese cultural heritage is very important and it would be unfortunate to lose the little Lebanon has left. At one of several thematic seminars hosted by Greenstone, the managing partner of RAMCO, Raja Makarem, expressed his concern about the lack of preservation of Lebanese heritage. Makarem said that incentives for preserving traditional and cultural properties should be given to owners, by cutting their taxes for example. He also added that it is not too late to teach our children at school about the importance of preserving the Lebanese heritage.
Many developers have been active in developing projects that preserve the traditional environment of the hosting neighborhoods, while adding a sense of modernization and comfort. Greenstone, with their new project entitled ‘L’Armonial’, are safeguarding the traditional 1920’s façade of a building in Ashrafieh. What this entails is “an innovative residential structure of 25 high-end luxury apartments… and an art gallery in the lobby [which] is intended to emphasize authenticity and respect to culture,” said Karim Saade, co-general manager of the company. The building also includes luxury spa facilities, a gym and a 20-meter swimming pool. Saade described L’Armonial as “a true marriage between old and new, tradition and innovation.”
Moreover, BREI has also developed the ‘Convivium’ brand in Gemmayze, which consists of “six communities characterized by their conviviality and architecture that fits with the local environment, as well as the comfort of modern design,” said El Khoury. With this brand, BREI aims to create sustainable communities, while respecting existing architectural tradition, heritage and environment.
Value added
It is certainly no longer enough to build high or low rise buildings with charming façades and large apartments in order to satisfy renters’ demands. Developers are currently finding new and diversified ways to add value to their projects, whether by enhancing security measures, being environmentally friendly, or simply creating innovative ideas that would differentiate one building from another and make it more attractive to live in.
For example, Sayfco is offering those who are looking for nontraditional housing and innovative architecture the ‘Pearls of Bchamoun’ village, which consists of 27 villa-like buildings with a total of 168 apartments. Yerevanian said that the villa-like buildings make the project “one of the most unique projects in Lebanon.” This new structural design is intended to attract clients that are looking for modernism and innovation, as well as enjoying a relaxing environment and different leisure activities.
Moreover, BREI is currently working on ‘Edelweiss’, which is a new project in the heart of the Faqra Club and it will take the form of a small village that includes low-rise buildings with two to four bedroom apartments in addition to chalets. This project has many environmentally friendly aspects, “there is an underground parking and cars will not be allowed to go in the village except for delivery at specific hours and for emergencies,” explained Al Khoury. Additionally, “buildings will be quaint, petites and made of natural materials like stone and wood. They will have some green features, in terms of energy saving and water treatment,” he added.
With more projects in the pipeline, it is anyone’s guess as to what cards developers are holding for their future plays, as they continue to supply those looking for luxury with distinguished properties characterized by a high level of originality and innovation.
With more projects in the pipeline, it is anyone’s guess as to what cards developers are holding for their future plays in the real estate game
