Real estate & Construction
Over 12 years of conflict, the Syrian government has spent SYP 380 billion on 11,909 reconstruction projects, Finance Minister Kenan Yaghi revealed on November 12 in a Syrian parliament session discussing the 2024 budget.
Initial figures appear to indicate that Syria’s cement market, a proxy for construction activity, will contract again this year, despite the earthquake-related reconstruction needs and the investment that was expected after the Arab rapprochement with Damascus.
The ongoing Turkish retaliatory attacks in northeast Syria have severely affected oil, water, electricity, education, and health infrastructure.
Earlier this year, a company linked to the Katerji family began construction work on commercial and residential complexes in Marota City. Marota City is an upscale real estate development that is being built on expropriated land and informal settlements in areas that were largely opposed to the government during the Syrian uprising. This luxurious development project launched more than ten years ago has largely failed to attract investment so far, although several regime cronies showed initial interest in it.
A Canada-based charity recently announced plans to build an entire village with hundreds of homes and other facilities for displaced Syrians in northern Syria, one of several large-scale residential projects in the region.
The government recently contracted a Russian company linked to Russian oligarch Dmitry Pumpyansky to build and operate a new 4-star tourist resort in Lattakia.
Earlier this month, Turkey announced new details about a long-term scheme to build between 200,000 and 250,000 homes with the aim of resettling one million Syrian refugees from Turkey to Turkish-controlled areas along Syria’s northern border.
Cement sales, a proxy for construction activity, declined by around 10 percent last year, according to data from various sources.
Israel's cabinet unanimously approved a multi-million dollar development plan to double the settler population in the Golan Heights and turn the disputed territory into the “technological capital of renewable energy” in Israel, according to Israeli Prime Minister Naftali Bennett.
The Real Estate Development and Investment Commission has authorised a local private company to build the first real estate development area in Damascus and the second in Syria.
The Israeli government has moved forward with a new settlement policy that plans to double, and eventually quadruple, the Israeli settler population in the Golan Heights. In opposition to the plan, hundreds of Syrians, most of whom are from the Druze community, in the village of Masada protested against Israel’s policy to increase settlements, while a number of Israeli media outlets have questioned the government’s policy.
For the first time in months, construction work is set to start on a new real estate project in Marota City.
On Tuesday, France's Court of Cassation overturned an earlier decision by a lower court to dismiss the charges of complicity in crimes against humanity brought against the multinational cement manufacturer, Lafarge.
The Ministry of Public Works and Housing announced on July 18 that it had signed contracts worth SYP 142 billion--around USD 56.5 million at the official exchange rate -- to build residential towers in the Basilia City real estate development south of Damascus.
Sales of cement in Syria increased by around 17 percent last year, indicating an increase in construction activity despite the Covid-19 pandemic and a significant drop in the population’s purchasing power.
The Syrian government has inaugurated the first project in one of the country's designated real estate development areas after years of struggling to attract serious investment
Syria has once again hiked prices for Portland cement, although stable production at state-owned factories and a continuous flow of the building material from Lebanon and Turkey has kept supply levels high.
The government has increased the price of portland cement to close the gap with its black market rate, while construction costs as a whole are continuing to rise.
Al-Badia Cement has reported a relatively strong increase in its 2019 sales, although its performance this year has already suffered markedly from the worsening business environment.
The prices of building materials in the local market have been extremely volatile over the past two months because of the ups and downs of the currency rate and higher tariffs. The fluctuations are almost certain to curb construction activity.