Achrafieh Report
Total Page:16
File Type:pdf, Size:1020Kb
Author Engineer Maura Azar holds a Bachelor Degree in Civil and Environmental Engineering from Notre Dame University, Louaize, 2020. She has gained experience from previously done internships in Lebanon and abroad. She is currently the Project Engineer with Springsfield Development S.A.L on KLEOS, residential towers project, in Achrafieh, Lebanon. Engineer Azar has published different research papers on the Real Estate Economy in Lebanon, specifically in Achrafieh. Page i Acknowledgments Inspiration, motivation, and hard work have always played a key role in the success of any project. Therefore, I would like to express my utmost gratitude to some important people that have inspired me and motivated me throughout my work. First, let me thank my mentor, Eng. Abdallah Hayek, for his guidance and encouragement. I am immensely grateful to all the efforts that he made, and for granting me the opportunity to deliver such an interesting project. Also, let me express my appreciation to Springsfield Development S.A.L for providing me with all the necessary support to accomplish this work. Being the developers of KLEOS project, they also helped me with all the data that is needed to give all the right details. Without their constant assistance, this report wouldn’t have been the same. I would also like to thank Ms. Sara Lee Habchi for her constant follow up on this report. If it weren’t for her impeccable management skills and dedication, I wouldn’t have been able to deliver this report on time. Lastly, I cannot but mention Mr. Jeremy Tawedian and Ms. Rita Camilos, as they had a fair share in this report. Their editing skills are what made this report pleasant to the eye, and free of any mistakes. I truly feel blessed to have worked on this report alongside an amazing, dedicated team, who supported me and stood by my side in every possible way in order to complete this report. Page ii Table of Contents Acknowledgments..................................................................................................................... ii List of Figures .......................................................................................................................... iv List of Graphs ........................................................................................................................... v Achrafieh: A General Overview ............................................................................................... 1 Life in Achrafieh ....................................................................................................................... 3 Community ............................................................................................................................ 3 Culture and Traditions ........................................................................................................... 7 History and Arts .................................................................................................................... 9 Tourists in Achrafieh ........................................................................................................... 12 Investors in Achrafieh ......................................................................................................... 13 Achrafieh: A Business District within a Home ....................................................................... 14 The Impact of Year 2020 on Lebanon .................................................................................... 17 Real Estate in Achrafieh: A Rare Gem ................................................................................... 19 KLEOS An Investment Prototype .......................................................................................... 29 Conclusion .............................................................................................................................. 31 References ............................................................................................................................... 33 Page iii List of Figures Figure 1: The Port of Beirut view from Sioufi (1911). ............................................................. 1 Figure 2 - The area of Achrafieh divided over the 4 Regions: Saifi, Rmeil, Medawar, and Achrafieh. (Ref: Hayek Group) ................................................................................................ 2 Figure 3 - St. Nicholas Greek Orthodox Church - Achrafieh. .................................................. 4 Figure 4 - Good Friday at St. Dimitrius Church – Achrafieh. .................................................. 4 Figure 5 - Prominent Locations in Achrafieh. .......................................................................... 5 Figure 6 - LAU Medical Center. ............................................................................................... 5 Figure 7 - Saint Georges Hospital. ............................................................................................ 6 Figure 8: Albergo Hotel ............................................................................................................ 6 Figure 9: Royal Tulip Hotel ...................................................................................................... 6 Figure 10: The interior of the Sursock Palace .......................................................................... 7 Figure 11: Garden suburb style in Achrafieh ............................................................................ 9 Figure 12: Old Charming Architecture ................................................................................... 10 Figure 13: Music Event in Achrafieh ...................................................................................... 11 Figure 14: ABC Achrafieh ...................................................................................................... 16 Figure 15: Protests during the Lebanese Revolution in October 2019 ................................... 17 Figure 16: Beirut Blast in August 2020 .................................................................................. 18 Figure 17: A Perspective View of the KLEOS Project ........................................................... 29 Page iv List of Graphs Graph 1: Area Availability and Their Corresponding Costs in the Achrafieh Region ........... 20 Graph 2: Average Cost per m2 in Achrafieh Zones ............................................................... 20 Graph 3: Average Area per Lot in Achrafieh ......................................................................... 21 Graph 4: Average Cost per Lot in Achrafieh .......................................................................... 21 Graph 5: Sales Operations in Beirut from 2010 to 2020 ........................................................ 22 Graph 6: Sum of Major Taxes on Sales Operations in Beirut from 2010 to 2020 ................. 23 Graph 7: Inflation adjusted average home sales price from 1971 to 2020 (Ref: Sweet, J. S. (2020, October 6). Timeline: History of the Housing Market Over the Last 50 years. The Simple Dollar.) ........................................................................................................................ 24 Graph 8: Inflation adjusted average home sales price percentages from 1971 to 2020 (Ref: Sweet, J. S. (2020, October 6). Timeline: History of the Housing Market Over the Last 50 years. The Simple Dollar.) ...................................................................................................... 24 Graph 9: Housing Price to Rent Ratio variation from 1971 to 2020 (Ref: Sweet, J. S. (2020, October 6). Timeline: History of the Housing Market Over the Last 50 years. The Simple Dollar.) .................................................................................................................................... 25 Graph 10: Housing Permits in the regions of Achrafieh between 2009 and 2018 ................. 26 Graph 11: Housing Permits in Achrafieh between 2009 and 2018 ........................................ 26 Graph 12: New Building Licenses in Achrafieh Regions between 2009 and 2019 ................ 27 Graph 13: New Building Licenses in Achrafieh between 2009 and 2019 .............................. 27 Graph 14: Execution Orders in Achrafieh between 2009 and 2018 ....................................... 28 Graph 15: Execution Orders in Achrafieh between 2009 and 2018 ....................................... 28 Page v Achrafieh: A General Overview Achrafieh! A word that can be pictured in scenes, a center-point for all tourists visiting this beloved country, a monument of national history, a home for more than 20% of the Lebanese population. Simply said, Achrafieh, is the ‘Heart of Lebanon’. The word Achrafieh is originated from the Arabic language and means ‘a high point that overlooks the lands below it’. It is said that the name was assigned to this city due to the nature of its geological formation, as it includes the high plateau located to the east of Beirut, which oversees the city alongside the seashore. Achrafieh is one of the oldest districts in Beirut. It is both a residential and a commercial area, characterized by its narrow tree-lined streets, the luxurious office buildings, and spacious apartment complexes. This prime area is home to contemporary projects and spaces, as well as a number of historical Western and Oriental architecture. Figure 1: The Port of Beirut view from Sioufi (1911). Page 1 The city has always been an art hub, jam-packed with galleries, graffiti,