A report has revealed a startling trend: real estate prices in Damascus, the capital, have doubled since 2011, with an inflation rate hitting 200%. Economist Mohammed al-Jalali emphasized the need to consider the inflation of all goods and services when discussing real estate price hikes. He cited an example of property that skyrocketed from five million Syrian pounds in 2011 to one billion Syrian pounds today, marking a staggering 200% increase. Meanwhile, transport fares also surged by 1,000%, as reported by the pro-regime Al-Watan newspaper.
Jalali highlighted the root of the problem: low-income levels and a vast disparity between prices and salaries. Minimum real estate prices in Damascus now hover around 500 million Syrian pounds, with upper limits surpassing 20 billion. He deemed these prices “real and fair,” given the consistently high construction costs.
The real estate market in Damascus has stagnated due to surplus supply outpacing demand, fueled by dwindling income levels and individuals seeking to divest surplus properties to fund travel or other endeavours.
Syria faces a significant challenge of “empty houses,” largely attributed to emigration and limited investment opportunities elsewhere. Jalali stressed the importance of the Ministry of Housing addressing this issue by identifying its causes and implementing solutions. He underscored how income disparity drives individuals to invest in unnecessary properties, exacerbating the problem.
Furthermore, some real estate agents in Damascus noted in January that prices in areas with violations ranged between 100 million and 800 million Syrian pounds, while suburbs like Sahnaya saw prices fluctuating between 200 million and two billion Syrian pounds, contingent on various factors such as cladding.
This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.
