Tag Archives | construction

The Housing Bank Just Screwed Home Shoppers in Lebanon

By Rami on February 15, 2018 in Economy

The two most popular options for home shoppers in Lebanon in order to finance their purchases is to either get a loan from the General Organization for Housing in case the apartment price is relatively low, or from the Housing Bank if the price is on the higher end.

However, earlier this month the Central Bank of Lebanon issued a new circular with amendments on subsidized loans, and as a result the Housing Bank increased its the interest rate from 3% to 3.75% while lowering the payment period from 30 to 20 years and toughening the lending terms in general.

To give you an idea of how these amendments impacted the monthly payments, a loan of $250,000 used to cost ~$1,050 on the previous conditions, but currently cost ~$1,500 based on the new terms and rate (refer to their loan calculator). Needless to say, this 50% increase means that a lot of home shoppers now can no longer afford the apartments they were previously aiming for!

I, for example, have been searching for an apartment in Beirut for a while now and the new terms mean that I have two options, to either settle for a significantly smaller one in space, or simply look for one of the same size outside the city. The latter is unfortunately a deal breaker for me so I just decided to halt everything now in hope for the prices to go down maybe… I guess it is only logical for this to happen now that the demand is expected to take a hit.

Things are by the way also quite ugly now for people who are already engaged by contracts with real estate developers. Those usually pay monthly installments directly to the developers until the project is fully complete, and then apply for a loan to finance the remaining amount, but they definitely didn’t see a 50% increase on their future payments coming! And while people like me can simply stop searching, others who are bound with contracts can do nothing but go for the loan anyway or pull out of the whole thing and pay a certain penalty to the developer for doing so.

I’m not an expert in economics but things seriously don’t seem right with the new Housing Bank decision, I mean you can’t simply cut down the people’s purchasing power just like that. I just hope this isn’t an indication of the Lebanese Lira being in a bad situation now and I also hope these amendments are only a temporary measure. Otherwise, I guess the real estate market is expected to go into stagnation no matter how developers try to convince the public that it is a resilient sector!

Engineering Lessons from Beirut

By Rami on July 15, 2017 in Videos

A group of workers were demolishing an old building in the Ras El Nabeh region of Beirut when it suddenly collapsed and filled the surrounding street with rubble that almost reached people who were observing the process, and definitely damaged some of the parked cars nearby.

You can’t but admire the contractors for the safety standards they’re working with. It tells a lot about the quality of the building that will soon be constructed there!

What Are These Excavation Works in Ramlet El Bayda?

By Rami on November 13, 2016 in Environment, Governmental

Many activists have been sharing photos since Thursday of excavations works currently happening at Beirut’s last public beach in Ramlet El Bayda but nobody was able to explain their purpose yet.

Over the last couple of years there has been a lot of talk about the area being a private property and that a resort will be built there by Achour Development. However, right before the previous municipal council’s term ended last spring, it was announced that the municipality of Beirut will be claiming back the beach and surrounding land in order to keep it accessible to the public. News about the whole thing then eventually stopped circulating until these photos started surfacing online.

Knowing that the “Byeirteh” list’s promise when they were elected was to keep Beirut for its people, I hope they were considering Ramlet El Bayda a part of the capital when they made their promise back then.

In all cases, I tried to reach both of Ziad Chbib (Beirut governor) and Jamal Itani (Beirut mayor) to know the purpose of these excavation works and will definitely post an update if they reply to me.

Photos via Lama Karamé and Joelle Boutros.

Lebanese journalist/blogger assaulted for taking photos

By Rami on May 15, 2013 in Lebanon

district s

Make sure to read Habib Battah’s story on how he got physically assaulted yesterday for trying to take photos of the ruins at District S construction site in Beirut downtown.

My chest and wrists still hurt from the arms of the men who tackled me, twisted my hands behind my back, and tried to rip my phone out of my hands this afternoon.

They were enraged because I refused to delete a photo of ancient ruins I shot on their construction site.

“Lock the door,” one of the foreman said earlier today, and moments later the giant doors of the site were sealed. I was surrounded by 5 to 6 men looking at me menacingly–prepared it seemed–to do anything to shut me up.

Unfortunately he was told to just forget about it when he tried to report the incident to the police station, so I hope his post reaches some good people who can take action about it!

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Tag Archives | construction