Central Bank's measures freeze real estate market in Syria: expert

Syrian economists assume that the Syrian Central Bank is causing a stagnation in the real estate market through measures aimed at withdrawing liquidity from the market, in addition to the many fees and taxes, which caused the Syrians to refrain from buying and selling real estate.

Analyst Ammar Youssef, in an interview with the pro-regime "Melody" FM radio last week, said that stopping lending operations and unprecedented routine procedures in the lending process has also led to people's reluctance to buy real estate.

Not to mention the foreign remittances and their complications for expats who want to send money to buy real estate, he added.

The expert explained that the only investment in Syria is real estate investment, and the credit objectives of the property exist, but the Central’s procedures stopped the citizen from selling the property.

Youssef indicated that if a property was sold at a price of 1 billion Syrian pounds and this amount was deposited in the bank, the amount would need three years to withdraw, prior to the decision issued two days ago to raise the daily withdrawal ceiling.

The economy is based on pumping liquidity into the markets to revive the economy and move it again, pointing out that all the measures taken by the Central Bank aim to withdraw liquidity from the market, which has led to a weakening of the purchasing power of the Syrian pound, the expert said.

The Syrian economy has been devastated by war and witnessed massive destruction of infrastructure worth USD 120 billion as the UN estimates, the rebuilding of war-torn Syria would need around $250-400 billion.

The regime-controlled areas suffer from a stark rise in the prices of basic materials and food commodities, amid government promises to fight monopoly.

The Syrian revolution that turned into a bloody conflict has claimed 500,000 lives and has displaced 13,2 million people since it erupted in March 2011 with the brutal repression of anti-regime protests.