Enab Baladi – Nouran al-Samman

House rents in Syria, especially in major cities, are witnessing a continuous rise driven by a range of economic and living factors.

Despite the relative improvement in the exchange rate of the Syrian pound against the dollar and the decline in prices of some goods in the market, the rental sector continues its upward trend.

This increase is attributed to several main factors, most notably the growing demand for housing due to the return of some Syrians after the fall of the Syrian regime, the scarcity of available apartments, and the inability of many residents to purchase properties, as reported by Enab Baladi. This has led them to rely on rentals despite their high costs.

Rental prices vary greatly between neighborhoods within major cities, where factors such as geographic location, availability of essential services, and proximity to the city center play a crucial role in determining prices.

What is the average rent?

Zaher, a real estate office owner in the Rukn al-Din neighborhood of Damascus, told Enab Baladi that rents in upscale areas of the capital range from 7 to 10 million Syrian pounds per month (between 700 and 1000 USD on average based on black market exchange rates), and they can reach up to 100 million pounds when paid annually (about 10,000 USD), noting that prices vary based on location and building modernity.

In middle-class neighborhoods like Rukn al-Din and Nahr Aisha, prices range from 4 to 5 million pounds per month (approximately 400 to 500 USD), while in popular areas, prices range from 1 to 2.5 million pounds (about 100 to 250 USD), according to the real estate office.

Zaher indicated a stagnation in the purchase of properties amid an influx toward rentals, emphasizing that this is due to the halt in legal property transfer procedures in the land registry.

In rural Damascus, Fares Ahmad Zain, a real estate office owner in Eastern Ghouta, told Enab Baladi that rents in the area start from 1 million pounds per month, explaining that the availability of housing was greater during the previous regime, but the return of residents after its fall has led to increased demand against a backdrop of supply shortages.

On the other hand, an Enab Baladi correspondent in Aleppo province reported that annual rents range between 15 and 30 million Syrian pounds (between 1500 and 3000 USD), while in some upscale areas, they reach much higher levels, with most properties rented on annual contracts.

Although prices are relatively lower in popular neighborhoods, they remain a significant burden on low-income families.

Proposed measures

Economic researcher Radwan al-Dibs said that the government does not have direct measures to curb rising rents, but it could adopt indirect policies, such as expediting the granting of construction permits for new properties, facilitating the renewal of permits for old properties, and speeding up the procedures for segregating illegal properties in preparation for establishing housing projects.

He also proposed eliminating taxes on imported construction materials like iron and cement, reducing real estate licensing fees, and improving infrastructure in rural areas to encourage urban expansion outside major cities.

These measures may not yield immediate results, according to al-Dibs, but over time, they could contribute to stabilizing the rental market and alleviating pressure on the real estate sector.

Economic analysts believe that inflation is the major obstacle in the real estate market, with al-Dibs explaining that “addressing inflation is not an easy matter, and it cannot be solved in a short period, which means that pressures on the rental market will continue for a long time.”

He also pointed out that the rise in housing prices in major cities is a global phenomenon, given the concentration of government services, universities, and economic facilities there, leading to higher demand for housing compared to rural areas that suffer from a lack of services and job opportunities.

Although the interim Damascus government has not announced direct decisions related to property and rental prices, the real estate sector remains one of the primary engines of the market, where high demand for housing stimulates related sectors like construction materials and contracting, leading to job creation and economic activation, according to economic expert George Khouzam in a post on Facebook.

Khouzam suggested launching housing loan programs for citizens funded by Syrian or Gulf banks, allowing families to transition from paying rent to making mortgage payments, stressing that this strategy could help spur the real estate market and attract foreign investments to the construction sector.

He believes that “the growing demand for properties reflects a shift in savings from dollars and gold to saving through purchasing national goods (real estate), which could limit demand for foreign currencies and contribute to stabilizing the Syrian pound.”

He also noted that the banking sector benefits from growth in real estate, as properties are used as collateral for commercial and industrial loans.

Regarding attracting foreign companies to invest in reconstruction, Khouzam considered that property prices in Syria are currently lower than construction costs, making investment in this sector economically unprofitable.

He clarified that the solution lies in raising income levels and increasing local production to enhance citizens’ purchasing power and create genuine demand for real estate, which would stimulate the real estate market and support the national economy.

Government decisions

On February 12, the Damascus governorate announced the start of receiving complaints related to encroachments on residential homes and properties, reaffirming its commitment to protecting citizens’ rights and taking necessary legal action against violators.

The Damascus governorate confirmed that this measure comes as part of preserving private properties and swiftly addressing encroachments, calling on citizens to report immediately to ensure prompt response and the resolution of presented cases.

Syria has suffered during Assad’s regime from confiscations of public and private properties, accompanied by forgery of sale and purchase contracts, leading to the loss of rights for many citizens.

Figures close to the previous regime exploited the chaos and the displacement of residents, seizing properties and belongings unlawfully or using threats or forgery, selling them later to citizens under forged contracts without the knowledge or consent of their original owners.

After the regime’s fall, many of these owners, attempting to return to their properties, were surprised to find them sold to others with counterfeit documents.

The Syrian Ministry of Local Administration warned all citizens against purchasing properties from “those involved in crimes against the Syrian people” during the regime’s rule.

In a circular issued on January 5, the ministry urged all citizens in Syria to be cautious when buying properties or drafting sale contracts with anyone “involved in crimes against the Syrian people” who were part of the ousted Assad regime.