Amid Lebanon's constant political upheaval, the unfolding economic crisis has negative implications on the real estate sector. Lebanon’s real estate market has entered a slowdown phase.
The Constructors – Architect Sarmad Shayboub – is a real estate development firm focusing on architecture, engineering and contracting since 1972, and specializing in the development of its own residential buildings. Moreover, the firm provides design and consultation services.
In Hamra, Shayboub Tower is complete and being delivered with high end specifications throughout. A few apartments are still available with sizes of 245 sqm , 290 sqm and 480 sqm.
A new project is also under construction in Ashrafieh, Medawar Area, Saifi, Pasteur street, Medawar Plot 38. This project consists of a new residential tower comprising 14 floors with 120 sqm, 130 sqm and 250 sqm apartments.
It is important to note that the law states that up to five percent of Lebanese land can be owned by non-Lebanese. In spite of what already looks like a land rush in the countryside, the amount presently owned by foreigners is only 1.6 percent.
All over the mountains, new residential complexes are annexing themselves to traditional villages. Mountaintops have been sold to foreign investors, sliced off and converted into the sites of American-style developments. However, there are already some regrets.
The mountainside – above the village of Shemlan – is scarred with roads scratched out by bulldozers, and the foundations for the repetitive cubicles that now occupy the land uncomfortably.
For Shemlan and many other villages, it's too late for change – the land and the village already are being dismembered.
But in the village of Hammana – Lebanon's cherry capital – the battle against dismemberment is being fought. Dr. Najib Abu-Haydar, chairman of the municipal council, has set down some laws to fight what he labels as greed to buy and greed to sell.
For Architect Shayboub, Lebanon is a natural beauty with a traditional architectural style.
BL: Architect Sarmad Shayboub, as a renowned real estate developer, presently, what’s the size, and diversity of the real estate market in Lebanon?
Architect Sarmad Shayboub: The real estate market is medium in size these days though many developers and investors from abroad are investing in Lebanon. There is a lot of Arab money being brought into this country because Lebanon has dramatic landscapes with exciting and inspiring views.
BL: Did Lebanese real estate evolve during the past five years?
Architect Sarmad Shayboub: Of course, the real estate market evolved during the past five years and there has changed during the last 2-3 years. The industry is now stable to stagnant. But it is amazing to see that the Lebanese working abroad are all the time pumping money into this country. This is why the country is resisting economic disorder; otherwise it would have been worse than Greece because there are more than 10 million Lebanese working abroad, many of whom are pouring money into their country.
Through 2010, Lebanon's real estate sector underwent a significant development to become one of the success stories of the country's economy. In Lebanon, there is some kind of stability regarding the real estate sector because the land is scarce.
BL: Does it bring enough investments and money to the Lebanese economy?
Architect Sarmad Shayboub: Not much maybe like 30-35%, which is very good because Lebanon doesn’t have many industrial or agricultural projects. Real estate is one of the prime aspects of Lebanon's developments.
BL: The change in the region is highly impressive, how does Architect Sarmad Shyaboub contribute to this change?
Architect Sarmad Shayboub: Not much but I would like to say that I do my share. I started working in the real estate development industry in 1971 and I constructed many buildings.
BL: You’re one of the first famed engineers who left his mark on the Lebanese real estate market, how do you evaluate the growth and the achievements of your own company?
Architect Sarmad Shayboub: The Constructors is not a big company, it’s a small company. It’s a family business but we provide super high quality products for distinguished customers. The Constructors is a well known company in Lebanon that delivers quality housing and offices.
BL: Who are your customers?
Architect Sarmad Shayboub: I classify them as the rich people but not the top rich people.
BL: What is the added value that you gave to this important industry?
Architect Sarmad Shayboub: Good architecture for sure, good specifications and good maintenance. All my clients live in the apartments that they buy. Perhaps, I am one of the few developers who have customers buying apartments to live in their homes because many developers sell apartments and nobody lives in the apartment. I choose the good situated lands that have good scenery, so this kind of housing is very comfortable to live in.
BL: How do you compare the Lebanese real estate market to that of Europe and the United States?
Architect Sarmad Shayboub: Presently, the Lebanese real estate market is stagnant. For the last 2-3 years, the market has been stable but eventually it’s falling down. It’s going down because there are many apartments not sold and naturally investments on these apartments loose the interest rate from year after year, so we are losing interest by at least 10% of the value of the apartment. Subsequently, these apartments are getting cheaper.
BL: How can the government put an end to forgery acts in this industry and how can the government stop imposters from damaging the image of the industry?
Architect Sarmad Shayboub: The forgery cases are very rare. Presently, the government cannot resolve the garbage problem. The government is overwhelmed with too many issues that need immediate solution.
BL: What are the standards of innovation and technology that you use in your projects?
Architect Sarmad Shayboub: I try to implement the highest specifications and we have all the time our consultants who supervise the work each week because the market is full of competition. It’s not easy to deliver a good product unless you have extra supervision and excellent specifications.
BL: What’s your vision and plans for the year 2016?
Architect Sarmad Shayboub: We have to wait and see. We have many projects going on.
BL: What is the size of apartments in demand?
Architect Sarmad Shayboub: It's the medium size which is in demand but actually the size of the apartment depends on the value of the land. If the value of the land is high you cannot make small apartments. I have other projects like 120 square meter apartments and other projects like 150 square meter apartments. There is lot of money in Lebanon.
BL: How do you see the present political and economical situation in Lebanon and the globe?
Architect Sarmad Shayboub: The current situation is very bad.
BL: Some Lebanese and regional real estate and development companies started new projects outside the borders of Lebanon like Cyprus, Europe, United States and Malaysia, do you have any plans in this regard?
Architect Sarmad Shayboub: Many people tried to implement projects outside Lebanon, and many of them lost, but you don’t hear except of those who win. We don’t hear that many lost millions of dollars in one project in Cyprus or in Greece or Iraq, people don’t talk, we hear only of the people that win.
BL: What is your suggestion to resolve Lebanon's trash problem?
Architect Sarmad Shayboub: Recycling but the problem is that members in the government are fighting about who is going to do what. Lebanon should look into reducing waste and recycling. Reduce the amount and toxicity of trash we discard. Authorities should provide recycling containers next to each trash retrieval location. 50 percent of packaging waste was recycled in 12 EU countries.
BL: Are the Lebanese regulations up-to-date regarding your industry? What are your recommendations?
Architect Sarmad Shayboub: The real estate regulations are acceptable, but the procedures are difficult and unprofessional because they make the procedures more difficult so we have to pay bribery. If the procedures are simple then there will be no bribery. Because the salaries are low bribery is seen as a necessary source of income and is corrupting the whole society.
BL: Sarmad, What is the number of projects that you have completed until today?
Architect Sarmad Shayboub: How many projects I don’t know, but I sold around 400 apartments. I built over 400 big apartments, the size of 300 - 400 sqm.
BL: How do you distinguish your company from other existing companies?
Architect Sarmad Shayboub: We go into small details more than others. We do simple things but we explore the work to make it the best. We deliver high quality construction and provide our customers with the deed of sale and in addition we provide maintenance services to everyone.
