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A recent study by RAMCO sarl on the office market in Beirut has revealed that 32 office projects are currently under construction in Municipal Beirut. This total represents 191,528 SQM of office space.
The study did not take into consideration projects that will be used as headquarter offices of private companies. The study focused solely on offices offered for sale or rent.
“Since 2015, the commercial market has been stagnating. For three consecutive years, the market has been flagging. The number of new projects is dropping, the stock under construction in 2017 is 2% lower than that under construction in 2015, prices are shrinking, and certain buildings under construction or recently completed post very low sales ratios,” says Karim Makarem, Director of RAMCO.
Beirut Central District (BCD) has a total of 31,449 SQM of office space. Depending on the location of the projects, average asking prices vary between $5,200 and $7,000 per SQM on the first floor (before negotiation). Two of these projects are located on the southern periphery of BCD, along Ring Road.
About 61% of the projects under construction in Beirut are located in Ashrafieh, where 20 projects are currently under way. Eleven (11) projects are located on the periphery of Ashrafieh, in the neighborhoods of Corniche el Nahr, Adlieh, and Badaro. “However, the stock under construction has dropped by 16% compared to last year,” says Karim Makarem.
Eight (8) office projects are under construction in the western part of Beirut. The supply of office space (43,421 SQM) has practically doubled since 2016. This boom is due to the launching of new projects in Jnah, Ramlet el Baida, and Unesco, where more than 17,500 SQM of office space are on the sale market.