The city of al-Dana in northern Idlib has witnessed an annual increase in the rental value of commercial shops, estimated at 25%, creating challenges for small and medium-sized business owners, and prompting some sellers to raise their product prices for consumers.

In al-Dana, the rent is set in US dollars, which is considered an attractive destination for traders due to its proximity to the Turkish border and its relative distance from escalation areas and military operations.

The increasing commercial activity in the city attracts more project owners.

Compensating by increasing product prices

Seller Mahmoud Mustafa, a resident of al-Dana, told Enab Baladi that he rents a clothing shop on the outskirts of the city at a cost of $150, which increases by $25 with the renewal of each annual contract.

He explained that sales percentages in the market are low compared to rents, to the extent that in some months he only earns enough to pay the rent, making all his efforts go to the landlord, as he put it.

Another seller, Ali Muhammad, who owns a grocery store in the center of the market, said that he pays $400 monthly in rent, and in some months, he only earns enough to cover the rent costs.

Basil al-Ahmad, who owns a clothing shop, clarified that he was forced to rent a shop on the outskirts of the market due to the excessive rise in rents in the center of the market.

He added that his current shop rent amounts to $140, increasing by $30 annually, attributing the reason to the increasing demand for shops, which allows landlords to control tenants and rent to those who pay more.

Most of the sellers interviewed by Enab Baladi said that they are compelled to compensate for the rising rent by increasing the prices of materials and products.

Vendors in the city of al-Dana are raising product prices to keep up with the increase in shop rents – September 30, 2024 (Enab Baladi/Muhammad Masto)

Supply and demand

Many shop owners have called on local authorities to organize the rental process and establish specific criteria that ensure balance between the rights of owners and the ability of tenants to continue their businesses.

The head of the Municipality of al-Dana city, Muhammad al-Dibo, explained to Enab Baladi that the determination of rental prices depends on the desire of the landlord and that rental contracts are made through real estate offices licensed by the municipality.

The rise in commodity prices and the rent of both commercial and residential properties places a burden on residents in northwestern Syria amid deteriorating economic conditions, decreased purchasing power, and a shortage of job opportunities.

Finding a place to live has become a recurring crisis in Idlib, which has become a haven for displaced persons from most Syrian cities and towns. The value of rents has increased by 70% since 2023, according to a report prepared by Enab Baladi last September.

According to the United Nations, 5.1 million people live in northwestern Syria, of whom 4.2 million are in need of assistance; 3.6 million suffer from food insecurity; 3.5 million are internally displaced; and two million live in camps. Local statistics, however, indicate that this number could be between 5.5 to 6 million people.