Richart khalil Affordable housing


Published on

Published in: Real Estate
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Demandeelevemaisoffrereduite poser une question de cettesorte
  • Richart khalil Affordable housing

    1. 1. Lecture held on Tuesday 25th October 2011 – LEBANON BUILD 2011 SUMMITLecture for construction professionals to present the advantages of buildingaffordable housing in Lebanon
    2. 2. Richart Khalil, Arch.Attracting Private Investors To The Development Of Affordable Housing
    3. 3. “People tend to think of affordable housing as a problem that uniquely affects the poor and homeless. However, in the last five years . . . were seeing this problem has spread to working- class people who are priced out of the market.” Annu Mangat, about NJ affordable housing Richart Khalil ©
    4. 4. Signs of a market shift • Exponential boom of constructions • Prices that doubled or tripled • Expected numbers attained prematurely • Raise of mortgage amounts by banks • Young couples living in rural areas or in rentINTRODUCTION • Management of Beirut s empty lots • Political turmoil in the ME region • Financial slow recovery about western crisis Richart Khalil ©
    5. 5. “Its a basic supply and demand issue, as supply becomes limited you have to delegate more" Imad Bashour, Infopro Research Richart Khalil ©
    6. 6. Signs of a market shift The demand is in raise but: Who can profit from these opportunities? What are the benefits of such investments?INTRODUCTION What are the weaknesses, or risks in this market? Is it a sustainable market in the long term? What kind of challenges should the investor overcome? Richart Khalil ©
    7. 7. Actors The actors that could answer the questions:Real Estate Ground The State Waqfs Private Investor Richart Khalil ©
    8. 8. Actors The first actor:Real Estate Ground • The State Urban remodeling – Public institution Laws and regulation "the affordability of housing is overwhelmingly a function of just one thing, the extent to which governments place artificial restrictions on the supply of residential land.” Thomas Sowell “The Housing Boom and Bust” Richart Khalil ©
    9. 9. Actors The second actor:Real Estate Ground • Cooperatives, Political parties or Religious welfare associations - Waqfs Land providers Punctual strategies and action Specific market Restricted areas or zones on the Lebanese territory Richart Khalil ©
    10. 10. Actors The third actor:Real Estate Ground • Private investors Resources and Skills Knowledge of ground rules Richart Khalil ©
    11. 11. Actors The Actors : The StateReal Estate Ground • The State • Waqfs • Private Waqfs Private investors Investor Richart Khalil ©
    12. 12. “Currently the majority of apartments in Lebanon are two- and three-bedroom residences. Only 1 percent of units in Beirut and Aley are one-bedroom, and there are almost none in Baabda. As demand for single occupancy and smaller apartments in the 100-250 square meter range rises from people with lower purchasing power than those who buy in Beirut - namely young people who want to move away from home and middle-class families - more affordable units will come onto the market.” Reported in the Daily Star, 2006 Richart Khalil ©
    13. 13. “For most middle income families and young couples the search for an affordable place to live is usually exhausting. Yet looking south, east and north of the capital there are still areas with a high concentration of new developments that cater specifically to middle income groups. Along with the periphery of Beirut as well, there are new areas coming up. According to developers, most in demand are units measuring between 120 and 180 square meters with three bedrooms.” Reported in Lebanon Opportunities, 2011 Richart Khalil ©
    14. 14. 2. Key Benefits • An important market of Lebanese prospects • Market normally growing • Active rural migrationOpportunities Richart Khalil ©
    15. 15. “Surfaces under sale are smaller than before. It is the only way for the developers to make the price boom acceptable.” Raja Makarem, Ramco Richart Khalil ©
    16. 16. 2. Key Benefits • Low income class and low middle-class • High real estate prices / buying capacity • Secure ROIOpportunities Richart Khalil ©
    17. 17. "If there is a limited capacity and increasein price in Beirut, this will push developmentto outlying areas. The market will reactdifferently depending on the location of theboom." Imad Bashour, Infopro Research Richart Khalil ©
    18. 18. 2. Key Benefits • The planning allows high BUA percentage • Spacious constructible lands • A lot of left-over spacesOpportunities • Rural areas being transformed into suburban areas Richart Khalil ©
    19. 19. “The whole area from Khaldeh, [a few kilometers south of Beirut] to Saida will eventually be built up for Lebanese who cannot buy in the capital” Kamal Hamdan, Economist Richart Khalil ©
    20. 20. Khalde region – South of Beirut 2004 © Richart Khalil
    21. 21. Khalde region – South of Beirut 2011 © Richart Khalil
    22. 22. “… as prices go up, the number of resident Lebanese who can afford to buy in the capital will go down. By 2030, […] people living and earning their entire incomes locally will essentially be pushed out of the city assuming non-resident demand is sustained.” Kamal Hamdan, Economist Richart Khalil ©
    23. 23. Sahel Alma region – North of Beirut 2004 © Richart Khalil
    24. 24. Sahel Alma region – North of Beirut 2011 © Richart Khalil
    25. 25. “The preferred price is anything under $300,000. buyers also insist on certain standard amenities, with ample parking, preferably underground, topping the list. For the price they pay buyers expect central heating and air-conditioning, a private generator for the building, a water well, electric shutters, marble floors and solid wood doors.” Reported in Lebanon Opportunities, 2011 Richart Khalil ©
    26. 26. 2. Key Benefits • Diversity of offers • Standardization of the constructionOpportunities Richart Khalil ©
    27. 27. “Everyone wants a piece of land. Its the only sure investment. It can never depreciate like a car or a washing machine. Land will double its value in ten years. In less than that. Land is going up every day.” SAM SHEPARD, Curse of the Starving Class Richart Khalil ©
    28. 28. 2. Weaknesses • Expensive lands • Uncontrolled urban planning • Insufficient infrastructure • Construction law • Low standards construction • Bad maintenanceRisks • Ecological situation Richart Khalil ©
    29. 29. “… for the buyer, it is no more the size that counts, but the budget.” Raja Makarem, Ramco Richart Khalil ©
    30. 30. 3. Challenges • A market of potential • A market of innovation • Evolution of the architectural concept • Population adaptationConclusion • Developing standards Richart Khalil ©
    31. 31. 3. Challenges • Developing standards Ensuring Safety Ensuring Decency Sustainability (Water andConclusion Electricity) Richart Khalil ©
    32. 32. “ Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.” Theodore Roosevelt (1858-1919) Richart Khalil ©
    33. 33. Thank You Richart KHALIL Urban Planner – Architect Lecturer at Université Saint Esprit de Kaslik Lecturer at Notre Dame University – Louaize www.ArchiQ.netContact Richart Khalil ©