Experts warn: turning billions into concrete assets could flood Syria’s Real Estate market

In recent months, Syria has witnessed the announcement of a series of major real estate and tourism projects, including the Yaafour 963 residential development in the Damascus countryside, projects by the Saudi company Abyat, as well as other developments such as New Damascus and Baramkeh Towers. A portion of the financing for these projects relies on the pre-sale of residential units before actual construction begins.

Experts believe that these projects target a narrow segment of investors and wealthy buyers, while United Nations estimates indicate that more than 90 percent of Syrians live below the poverty line. This raises questions about the viability of such investments and their ability to generate actual sales sufficient to ensure their continuity.

Yaman Al-Shami, a real estate development expert working on projects within the Marota City area, stated that thousands of residential and commercial units currently offered for sale in the district are facing significant marketing challenges due to limited liquidity and the absence of mortgage financing and bank installment programs.

He explained that real estate developers have injected substantial amounts of capital into construction and development activities, but weak sales performance has effectively frozen these funds within projects that are unable to generate the liquidity required to complete their operations. He noted that apartment prices in these developments start at around $300,000 a price level far beyond the reach of most Syrians.

Al-Shami added that the reliance of some companies on selling units through installment plans before construction begins is primarily aimed at securing project financing. However, he warned that this approach carries considerable risks given the limited actual demand and the growing number of competing projects entering the market.

For his part, economic expert Mazen Issam stressed that Syria’s current economic priorities should focus on supporting production, providing affordable social housing, and stimulating the real economy, rather than expanding the construction of skyscrapers and luxury residential complexes that do not correspond to the living conditions of the population.

He pointed out that the Syrian market currently lacks a consumer base capable of absorbing such a large volume of high-cost real estate projects, warning that continued investment in this sector could result in billions of dollars being tied up in illiquid real estate assets that may prove difficult to monetize in the future.

Issam added that the success of any real estate project depends on the existence of genuine demand and adequate purchasing power. However, Syria’s market is suffering from a sharp decline in income levels and consumer spending, making many of these developments appear more like a “marketing illusion” detached from the actual needs of the population.

The expert also warned of the risks associated with constructing thousands of luxury housing units that exceed the market’s absorption capacity. He argued that this could lead to the emergence of largely vacant urban districts and transform some projects into what could be described as “ghost cities,” as supply continues to accumulate while demand remains limited.

He further expressed surprise at the decision of the Public Housing Establishment to enter into new investment partnerships with the private sector while older housing projects continue to suffer from delays and incomplete delivery to subscribers who have been waiting for years. He called for greater transparency regarding the mechanisms governing these partnerships and the legal and financial guarantees involved, in order to protect public funds and the rights of beneficiaries.

Observers believe that the future of these projects will remain closely linked to Syria’s ability to achieve economic recovery and improve income levels and housing finance options, amid growing concerns about the widening gap between the nature of current investments and the genuine housing needs of most Syrians.

ANHA