Shark Tank star Kevin O’Leary: Lebanese heritage influenced my career

On TV, Kevin O’Leary is a staunchly money-driven businessman known for his big investments and blunt off-the-cuff remarks. But when the cameras are off, the multimillionaire is a proud family man who has passed down his Lebanese values to his children.

O’Leary is best known for his role in the ABC television series Shark Tank, where he is one of five ‘shark’ investors who listen to entrepreneur pitches and choose whether or not to invest in their startups. He is also the co-founder of the billion-dollar tech company SoftKey Software Products.

The Canadian-born businessman was raised by an Irish salesman father and Lebanese businesswoman mother. He spoke candidly to Lebanese Examiner about his rapid success in the world of business, and how his Lebanese values still carry on to this day.

“Lebanese culture is one of the most successful entrepreneurial cultures on earth,” O’Leary says. “I’m very proud to say that because it’s true.”

All In the Family Business

Growing up, O’Leary was surrounded by business and hard work. His grandfather immigrated to Montreal, Canada from Hasbaya, Lebanon and built a successful clothing manufacturing company called Kiddie Togs.

“That’s how I learned family values, and I think those things are very important,” O’Leary says. “You don’t realize that until you get older. The work ethic in Lebanese families is legendary.”

Kevin O'Leary and his mother Georgette Bookalam. (Twitter/Kevin O'Leary)
Kevin O’Leary and his mother Georgette Bookalam. (Twitter/Kevin O’Leary)

O’Leary’s mother, aunts and uncle all worked hard to keep the family business running, but they always made time for family. His mother Georgette Bookalam died in 2008, and her sons credit their successes to her teachings.

“My mother Georgette was one of the most influential people in my career,” O’Leary says. “To this day, her wisdom and advice guide me in almost every business choice I make.”

The O’Leary home valued family. Sunday dinners were an important part of his life growing up, and it started a special tradition that continues today.

Kevin O'Leary and his family. (Facebook/Kevin O'Leary)
Kevin O’Leary and his family. (Facebook/Kevin O’Leary)

“I remember every Sunday if you didn’t show up for dinner that (my grandmother) prepared all day long, you would burn down in perpetuity,” he says. “I appreciate that because I have those same rules now. I try to get my family together no matter where we are every Sunday to keep that tradition going.”

Lebanese DNA

O’Leary once lived in Cyprus, and would visit Beirut often in the sixties before troubles broke out in the region. His experience in global investments have taken him around the world – and he always finds a Lebanese friend with an incredible business story.

“Lebanese are very smart investors,” he says. “If you go to any city in the world, you’re going to find that the core Lebanese community is very successful. Very often, they own all the real estate in town and lots of different businesses.”

Through his travels, he always finds a good Lebanese meal, too.

“It’s no surprise to me when I go to South America, Cambodia, Europe, wherever, I always go for a good meal,” he says. “I look for a good Lebanese restaurant.”

Kevin O'Leary on the set of the ABC series Shark Tank. (Disney ABC Press)
Kevin O’Leary on the set of the ABC series Shark Tank. (Disney ABC Press)

The entrepreneurial spirit flows through the Lebanese blood, he adds. Today, when he lectures at universities all over North America, he shares these stories with American and Canadian students.

“Some of us are born to create wealth, and others are meant to work there,” O’Leary says. “That’s just the way it is. They are both noble pursuits, but Lebanese have built businesses, they take risks and they support their families – they have a cultural disposition to do that.”

Kevin O'Leary and his mother Georgette Bookalam. (Twitter/Kevin O'Leary)
Kevin O’Leary and his mother Georgette Bookalam. (Twitter/Kevin O’Leary)

O’Leary believes his grandmother and mother played a central role in his career. He calls them “powerful matriarchs,” and says they exist in every Lebanese family.

“I’m a big supporter of women entrepreneurs – women are very good at business,” he adds. “I think the Lebanese culture was one of the first to support the concept of matriarchal values.”

These values, he says, are part of his career decisions, every day.

Shakira selling home in Miami Beach for $11.6 million

Shakira is selling her waterfront home in Miami Beach for $11.6 million, real estate records showed.

The Columbian-Lebanese singer, who is starting her international El Dorado World Tour, put her home on the market on June 1.

The Miami Beach estate is 20,726 square-feet, and features six bedrooms and 7.5 bathrooms.

shakira home miami beach sale 1

Shakira first bought the home in 2001 for $3.3 million, and listed the property in 2013 for $14.9 million, records showed.

The home is located at 3140 North Bay Road, overlooking the Biscayne Bay. There is even 101 feet of water frontage for a yacht.

shakira home miami beach sale 4

Shakira’s brother Antonio Mebarak is co-listing the home with Ana Lourdes Martinez, an agent at Douglas Elliman.

According to the real estate listing, the home features an open-floor plan, imported light wood floors and a spacious grand room with abundant natural light.

shakira home miami beach sale 3

RELATED: Tickets on sale for Shakira’s concert in Lebanon start at $75

Shakira’s El Dorado World Tour started on June 3 in Hamburg, Germany. She plans to perform in Lebanon during the Cedars International Festival in July.

Study reveals average residential prices in Beirut

The average starting cost for apartments under construction in Beirut vary from $2,000 to $8,500 per square meter, according to a new study conducted by a Beirut-based real estate advisory firm.

The firm RAMCO studied apartment asking prices in 67 Beirut neighborhoods, including popular downtown districts such as Saifi Village and Manara.

According to the study, between 2016 and 2017, prices have dropped in 34 out of the 67 Beirut neighborhoods, especially in central neighborhoods between Bachoura and Kaskas.

But researchers say there has not been a significant drop in apartment prices in the highest tier of the market. The most expensive neighborhoods, Manara and Saifi Village, have the same asking price as last year.

SEE MAP OF BEIRUT’S MOST EXPENSIVE NEIGHBORHOODS:

Beirut_Prices_Neighbourhood_2017_EN

Other neighborhoods, classified by the study as “mid-market” areas, have seen their average prices increase. Areas such as Sioufi, Beddawi and Sakiet el Janzir, along with 23 other neighborhoods, posted  a price hike over the last year.

Price hikes, the study says, are due to the introduction of new residential projects, which pull prices upward.

PRICES DROPPED

  • Central neighborhoods between Bachoura and Kaskas
  • Most neighborhoods on the eastern edge of Achrafieh

PRICES INCREASED

  • Mid-market neighborhoods
  • Sioufi, Beddawi and Sakiet el Janzir

PRICES REMAIN THE SAME

  • Neighborhoods in good demand
  • Sursock, Saifi Village, Monnot, Kobayat, Kantari, Manara

Researchers say the study looked specifically at asking prices posted by developers, and excluded any margin of negotiation or potential discounts offered during the purchasing process.

According to its website, RAMCO is a Beirut-based full line real estate advisory company, providing agency, marketing, and consultancy services.

Beirut lands on list of world’s most expensive cities

(LUXEMBOURG) – Beirut is the ninth most expensive city in the world for expats, according to a new report published by the Eurocost International Survey in Luxembourg.

The report measures the cost of living for expats, including rental costs, living conditions and school fees. According to the rankings, Tokyo is the most expensive place in the world for expats.

Last year, Beirut was listed as the 14th most expensive city in the world, and the most expensive location in the Middle East.

The study is based on prices collected in June 2016 and updated with August 2016 exchange rates; it compares expat living costs in major locations worldwide, including housing costs.

During the last two years, exchange rates have regularly fluctuated and no less than four cities have occupied the top spot in the world’s ranking of the most expensive location for expats: Moscow, Luanda, Hong Kong and now Tokyo, back to the spot it had occupied until 2012.

In the Middle East, Doha, Dubai and Abu Dhabi were listed as “expensive cities” too, but not as costly as Beirut.

Major highlights

  • Tokyo is the most expensive city in the world again
  • Top cities are subject to exchange rate fluctuations
  • London is always more affordable for expats

The most expensive cities worldwide – 2016

  1. Tokyo
  2. Hong Kong
  3. Luanda
  4. Geneva
  5. Singapore
  6. Shanghai
  7. Seoul
  8. Beijing
  9. Beirut
  10. Zurich
  11. New York, NY
  12. London
  13. San Francisco, CA
  14. Guangzhou
  15. Lausanne
  16. Kinshasa
  17. Honolulu, HI
  18. Mumbai
  19. Abu Dhabi
  20. Wuhan
  21. Sydney
  22. Bern
  23. Moscow
  24. Tel Aviv
  25. Dubai
  26. Copenhagen
  27. Basel
  28. Doha
  29. Chengdu
  30. Washington, DC

Average price of first floor apartment in Beirut tops $800k

(BEIRUT, LEBANON) — A recent study conducted by RAMCO Real Estate Advisers has revealed that the average price of a first floor apartment under construction in Beirut is of USD 3,720 per SQM.

At an average size of 238 SQM, the average value of such an apartment stands at USD 885,360

This price does not take into consideration the negotiation margins that currently take place on the market.

“Given the slight drop in developers’ asking prices and the decreasing size of new apartments, the value of apartments is slightly lower as compared to 2014,” says Karim Makarem, Director of RAMCO sarl.

Completed in Spring 2015, the study, which covers 345 residential buildings under construction across Municipal Beirut, reveals that the average price of an apartment (on the first floor) has dropped by 4% between 2014 and 2015.

Beirut Central District (BCD) remains a differentiated neighborhood. It collects market highs by posting an average asking price of USD 6,679 per SQM on the first floor and an average size of apartments under construction of 331 SQM.

The average apartment is thus offered at USD 2,210,749.

Outside BCD, Beirut posts wide price disparities. High-end neighborhoods, such as Ain el Tineh or Sursock, post prices that very between USD 4,900 and USD 5,250 per SQM on the first floor.

On the other hand, the mid-market neighborhoods of Ashrafieh (such as Beddawi or Hay el Sirian) start at around USD 2,600 per SQM.

Average Price (on the 1st floor) of an Apartment under Construction in Beirut

Neighborhood BCD  Ashrafieh Ras Beirut Municipal Beirut 
Average Unit Price (USD/SQM)6,679 3,6073,5743,720 
Average Size (SQM)331 229229238 
Average Total Value (USD)2,210,749 826,003818,446885,360 

* in Municipal Beirut Source: RAMCO sarl – August 2015

Real estate group reveals average apartment prices in Beirut

(BEIRUT, LEBANON) — Beirut-based real estate advisory firm RAMCO revealed the average sales prices of apartments under construction in Beirut vary between USD 2,088 and USD 7,000 per square meter.

The BCD, the seafront stretch, and some neighborhoods in Ashrafieh are still the most expensive in Beirut. The central residential neighborhoods – from Bachoura to the North down towards Hamad and Rweiss in the South – are the least expensive in the capital.

The RAMCO research department produced a map of average asking prices of apartments in 346 buildings among 71 Beirut neighborhoods.

Beirut_Prices_Neighbourhood_2015_EN

The map of the prices of new apartments, by neighborhood, reveals several indicators of the real estate market of Beirut:

  • Logically, the seafront neighborhoods of the capital post the highest prices. From Ain el Mreisseh to Ramlet el Baida, averages vary between USD 4,583 and 6,925 per SQM. These prices, however, are not only for projects located on the shores of the Mediterranean Sea but also for projects under construction on secondary streets, where certain apartments do not offer open sea views.
  • The Beirut Central District (BCD) has been divided into five geographical sectors. Averages on the first floor vary between USD 6,000 and USD 7,000 per SQM. Overall, prices have dropped over the past 12 months. As there are no projects currently under construction around the Bay of St. Georges, averages have dropped compared to last year. The highest averages are located in the area of Foch-Allenby, which enjoys views of the Port of Beirut.
  • Not a single neighborhood in the capital posts prices below the symbolic bar of USD 2,000 per SQM. The lowest prices are found in the central neighborhoods of Beirut, between Bachoura and Tarik el Jdideh, and vary between USD 2,088 and USD 2,400 per SQM.

Federal prosecutors pursue Lebanese-American businessman for fraud

(LAS VEGAS, NV) — A Lebanese-American businessman could face more charges in a $190 million federal fraud case, as a federal grand jury recently issued additional subpoenas to testify against the high-rolling entrepreneur.

Ramon DeSage, 64, was charged with allegedly deceiving investors out of $190 million and defrauding the IRS out of $31 million. He is charged with 52 counts of conspiracy, wire fraud, money laundering, and tax evasion.

According to court documents obtained by the Las Vegas Review-Journal, the grand jury issued subpoenas for witnesses to testify and provide transactions involving DeSage and his luxury gift supply business.

His company, Cadeau Express, was allegedly used to defraud investors between 2005 and 2012. According to the indictment, DeSage pocketed the money in the scheme to repay earlier investors, maintain his wealthy lifestyle, and cover millions of dollars in gambling losses at casinos along the Strip.

Court documents recently unveiled the names of several suspected victims, including former casino executive William Richardson, who allegedly lost $40 million in investments with DeSage.

DeSage and two of his employees have pleaded not guilty to felony charges. His trial, which is now set to begin on Jan. 26, has been delayed 10 times.

DeSage, also known as Ramon Abi-Rached, is currently under electronically monitored home detention since his arrest three years ago, according to the Las Vegas Review-Journal.

Assistant U.S. Attorney Gregory Damm has said in court that DeSage owned a 40,000-square-foot palace in Lebanon and more than $10 million in real estate holdings.

According to DeSage’s website, he was born into a “prestigious family” in Lebanon, educated in France, and worked for UNESCO for some time.

His website also says he is a “philanthropist” with a “noble character” and a “true example to all of us.”

DeSage has not been active on his Twitter account since Jan. 22, 2014, where he described himself as being “proud” of his Lebanese heritage. He also mentions he is a “father of seven children.”

Beirut 37th in the world for expensive rent

(BEIRUT, LEBANON) — Beirut was ranked as the 37th most expensive city for retail rental locations among 65 other cities in a recent survey conducted by property consultant company Cushman & Wakefield.

Beirut was also ranked as the third most expensive city in the Middle East and Africa region, and the second most expensive out of five Arab cities included in the survey.

The study evaluated retail rental prices between September 2013 and September 2014 in 330 locations in 65 countries around the world.

The most expensive retail rental location in Beirut is the ABC Mall in Ashrafieh, at around $2,000 per sqm, 61 percent higher than the Middle East and Africa average of $1,223 per sqm.

Out of the 24 locations evaluated in the Middle East and Africa region, the survey found that the ABC Mall in Ashrafieh ranks as the fourth most expensive.

The Beirut Central District is in 14th place at $1,000 per sqm, Verdun Street in 19th place at $800 per sqm and Kaslik Street and Hamra Street in joint 20th place at $700 per sqm each.

Retail rents fell by an average of 7.1 percent in the Middle East and Africa year-on-year; rents declined in 12 of the locations surveyed, increased in three other locations and were unchanged in eight locations, while Manama did not have historical data.

Retail rents went up by an average of 2.4 percent globally, and rents rose in 139 of the 330 locations surveyed, declined in 50 others and remained stable in 138 locations, while three locations lacked historical data.

New York’s Upper 5th Avenue replaced Hong Kong as the world’s most expensive retail location, at $37,065 per sqm a year.

CNN includes Beirut among up-and-coming cities for the rich

lebanese-examiner-rich

Forget New York, London and Hong Kong. These 12 cities should give wealthy real estate investors the best returns over the next few years, according to Savills, Candy & Candy, and Deutsche Asset & Wealth Management.

1. Beirut, Lebanon

Despite its violent history, Beirut stands out as being an ideal place for adventurous real estate investors, according to a new report from Savills World Research, Candy & Candy and Deutsche Asset & Wealth Management.

Yes, there has been some recent spillover from the ongoing Syrian conflict. But the Mediterranean coastal city is known for its culture and nightlife, which attracts a young population, said Yolande Barnes, director at Savills World Research. It’s also known as a regional financial hub.

“Real estate in the city still looks very cheap by international standards,” said Barnes.

Prices for two-bedroom apartments tend to range from $180,000 to $500,000, depending on the location.

2. Cape Town, South Africa

In addition to reasonably priced housing, Cape Town offers gorgeous weather, an active culture, an easy-going vibe and sprawling vineyards that surround the city.

“Current market conditions are poor due to the weak rand, high inflation and high interest rates, but this means that bargain hunting is possible and the city looks cheap on an international scale,” said Barnes.

Two-bedroom apartments range in price from $110,000 to $370,000.

Cities where English is the first or second language also tend to be desirable among wealthy investors. English — being the global language for business — tends to enable more commercial activity, so Cape Town is well placed.

It also doesn’t hurt that the city is on the coast. A favorite pastime among locals is called “Sundowners,” which involves watching the sun set over the ocean with a drink in hand.

3. Chennai, India

Chennai, formerly known as Madras, is one of India’s biggest metropolitan cities with a population of more than 4 million.

The coastal city is a hub for commerce in southern India and “has a diverse economic base, strong cultural life and arts [scene], including cinema and film production,” said Barnes.

It is also a magnet for ultra-high net worth individuals in the region.

Of the 12 cities on this list, Chennai offers the most affordable options for real estate investors. Two-bedroom apartments around the city can sell for as low as $40,000, while apartments in prime locations are priced around $160,000.

4. Chicago, U.S.

The U.S. housing market is making a comeback, and investors interested in riding the wave can bet on Chicago real estate.

“Chicago’s growth is likely to be in line with the economic growth of the U.S. so it is an American recovery play,” said Barnes. “Residential prices are now beginning to recover but it still looks cheap in relation to world cities and offers high yields.”

Related: How far will my salary go in another city?

The area is home to the headquarters of various multinationals including McDonald’s(MCD) and Exelon (EXC), and it’s also known for affluent suburbs where ultra-rich individuals live and play.

The typical price for a two-bedroom apartment in Chicago ranges from $250,000 to $700,000.

5. Dublin, Ireland

If you’re looking for value, Dublin is the place to go.

The city was ravaged during the eurozone crisis and the real estate market took a nosedive.

But a recovery is now firmly in place.

“Property is still discounted and could be said to offer good value in the context of strengthening industry and growing employment,” said Barnes.

The city is moving to attract young people and technology companies. Google (GOOG) andFacebook (FB) both have large offices in the city.

A two-bedroom apartment typically costs from $210,000 to $560,000.

6. Istanbul, Turkey

Turkey has received some bad press lately: a deadly mine disaster, anti-government protests, a corruption investigation. But that’s overshadowed the fact that the country, which straddles Europe and the Middle East, is becoming quite prosperous.

“Foreign investment has steadily increased since 1990 and has contributed toward growth in the construction, automotive, banking, insurance, electricity and information technology sectors,” said Ruth Lux, managing director at the political risk consultancy firm Strategic Analysis.

The country’s main stock market index has more than doubled in value over the past five years, unemployment has been falling and Turkey has surged up global rankings for competitiveness, attracting a growing number of multinational companies.

Throw in a young, vibrant atmosphere, bustling tourism and a rich history, and you’ve got a recipe for a possible housing boom.

Prices for a two-bedroom apartment currently range from $125,000 to $280,000.

7. Jakarta, Indonesia

Jakarta is a major urban center that has seen real estate prices shoot up as the country’s economy flourishes. The city’s property market has benefited from demand from abroad and a middle class that’s increasingly affluent.

Jakarta resident and Canadian expatriate Wendy Rudder says new residential towers marketed to international investors are constantly cropping up.

“Half the people in my building are Japanese because the Japanese are very interested in investing in Indonesia over the long term,” she said.

Prices for a two-bedroom apartment typically range from $90,000 to $260,000.

8. Lagos, Nigeria

Lagos, a rapidly growing city of 20+ million people, has a large population of ultra-rich individuals, said Barnes.

“The sheer size and power of the city, fueled by oil and natural resources, points to real-estate growth,” she said. “But lifestyle, safety and quality of the housing product is still an issue.”

Indeed, the terrorist group Boko Haram seems intent on wreaking havoc across Nigeria, launching devastating bomb attacks and kidnapping school girls. Boko Haram hasn’t ever attacked Lagos, but the U.S. State Department recently warned that “groups associated with terrorism” may be planning to target a Sheraton Hotel in the area.

Still, brave investors may be able to snap up some bargains. Prices for a two-bedroom apartment can range from $70,000 to $300,000.

The makers of the Monopoly board game have also taken note of the city’s property market. In 2012, Monopoly released its first African city edition based on Lagos.

9. Melbourne, Australia

Sydney who?

Melbourne, with its population of about 4.3 million people, has caught the attention of property experts.

It’s a highly developed, growing city that could act as a safe haven for real estate investors who are too nervous to put their money in emerging markets.

The government forecasts the city’s population will balloon to nearly 8 million by 2051 and builders will have to meet housing demand by constructing another 1.6 million dwellings.

Currently, prices for a two-bedroom apartment range from $320,000 to $675,000.

10. Miami, U.S.

Miami was arguably the epicenter of America’s property bubble in 2008, with prices crashing hard during the financial crisis. But now high-end properties in prime locations have seen prices bounce back to peak levels and residential real estate across the city is rebounding.

Barnes said that if she could buy real estate anywhere right now, she would invest in Miami, noting that property in non-prime locations provides the best opportunity for capital growth.

The Miami market is also supported by demand from rich South Americans who want to invest in U.S. real estate, giving investors indirect exposure to the South American market.

Typical prices for a two-bedroom apartment range from $275,000 to $900,000.

11. Panama City, Panama

Panama is a major beneficiary of globalization, with the country sitting between North and South America and trade routes between the Atlantic and Pacific oceans.

“Panama is forecast to be one of the fastest growing economies in Latin America in the coming years and is uniquely placed to reflect the growth of world trade as all types of shipping pass through its famous canal,” said Barnes.

As the country’s economy grows, Panama City has seen new hotels and restaurants crop up. Property investors are taking notice.

Barnes said the city is especially attractive for people looking to buy a place and then rent it out, predicting smart landlords could see annual returns in excess of 8% a year.

“Demand for rental property should remain strong given the likely strength of the economy and number of people coming to the city to work,” she said.

The price for a typical two-bedroom apartment ranges from $200,000 to $500,000.

12. Tel Aviv, Israel

Tel Aviv’s thriving tech scene and young, educated population have helped the city prosper over the years. Most of the population is fluent in English, making it an easy place to do business.

The city is considered a cultural hub with plenty of museums, a hopping night life and a beautiful Mediterranean coast.

But that’s pushed up real estate prices across the city. Tel Aviv is the most expensive cityon this list.

The cost for a two-bedroom apartment ranges from $500,000 to $1.45 million, depending on location.

“Tel Aviv displays a large number of the characteristics we have identified as boding well for residential property markets,” said Barnes. “Even its UNESCO world heritage site status mark it out as a typical ‘rising second-tier’ world city.”

 

Source: CNN

Original Article

Tenants fear new rent law will drive them to the streets

BEIRUT: The crumbling facade of the once-elegant Hasbini Building in Zarif mirrors the eroding foothold of longtime tenants in the capital and across the country, following the passing of the new rent law.

The law, passed in April but under constitutional review after a challenge by former President Michel Sleiman, would affect thousands of families and individuals. It has pitted old tenants and activists against landlords, and, on a broader ideological level, social welfare advocates against free market liberals for the future of the city.

The landlord of the Hasbini Building, Samir Hasbini, blames its dilapidated state on the lack of income from longtime renters. If the new rent law goes into effect, he says he would be able to invest in the building, although he admits that he would prefer to sell the land.

Samir Hasbini’s father, Mohammad Hasbini, built the five-story building around 90 years ago as a newly married man with a young family. The Hasbini building boasts embellished columns, intricate balustrades and tall ceilings, but years of neglect have taken a toll.

At the time it was built, it was one of many fine buildings in the area that borders Zoqaq al-Blat, home to some of Beirut’s outstanding architectural gems. Today, many of the historical buildings have been torn down or are in such disrepair that residents consider it only a matter of time before they too become casualties of the construction boom.

Hasbani, 70, explains that he owns the building with eight of his sublings, “and each of us gets not more than LL200,000 ($132) a year. That apartment across the street was rented for $1,200 a month … [as an] investment.”

“If one of my apartments were emptied, I could get a minimum of $500,000 for it,” he says.

The law in its current form would raise rents gradually over six years to 5 percent of the unit’s market value, which would be decided by court-approved appraisers. However, after nine years, landlords could evict longtime tenants, even if they are paying the higher rent. Tenants who qualify as poor would have 12 years before they could be evicted, during which time the increase in their rent would be covered by a special fund.

Hasbini, who also lives in the building, says his support for the law has not affected his relationships with his neighbors and tenants, which he describe as “good.”

Reda Hamdan, a tenant who has lived in the building for 35 years, is fatalistic, declining to give an opinion on the new law.

“Whether it’s good or not good, it’s the state’s decision,” he says. “If they raise the rent, we will pay, if they don’t, we won’t.”

Around the corner at a nearby mechanic shop, Mohammad Jamal, 55, speaks bluntly of his opposition to the law.

“Three of my children are studying to be doctors and two more are also studying medicine, and I work night and day to educate them,” says Jamal, who pays LL1,000,000 ($662) a year for a home in Corniche al-Mazraa. “If they kick me out and I need to rent a new house, I won’t be able to.”

Jamal estimates that he has paid half the value of the apartment since he moved in, and called for the state to come up with more affordable housing options.

“How can I afford a house for $1,000 a month?” he says. “There is no housing, no nothing. Should I go live in the streets? … Of course I am against [the new law].”

Urban researcher and activist Nadine Bekdache sees the new law as a means of emptying old buildings over the next few years for the benefit of real estate investors, exacerbating the displacement of lower and middle-income families from Beirut.

“There was already a development boom before this rent control law that is replacing rent controlled buildings with new constructions, affecting the history and social context of each neighborhood,” she said.

Bekdache says small landlords will not be able to sell or renovate immediately, but that large developers, on the other hand, can afford to wait until the nine- or 12-year mark passes and then snap up the empty properties without having to compensate the tenants.

“Everything we know of Beirut is tied to the old rent law,” she says. “There should be a proper survey, and a proper debate. [The law is] a chance to talk about housing policy in the city, how it’s being emptied of low- and middle-income people.”

Joseph Zoghaib, president of the Landlords’ Association, insists the law has been misrepresented to the public by rich tenants and the Communist Party.

“We are in a free economic society and we value this very much,” says Zoghaib, who argues that freeing up old rent apartments will actually bring down the inflated rent prices in Beirut. “Who said the free market doesn’t respect the right to housing? … I would never like to see my compatriots living in the streets.”

Zoghaib says that when landlords are able to make a decent income off their properties, they will have less incentive to sell to large developers.

“Poor people have nothing to fear; they get compensation and they have the next 12 years [before they can be evicted],” he says. “If they are old, 12 years is more than enough, and if they are not old, let them come up with a plan and move their butts a little. Not everyone should throw themselves on the state.”

The rent law law was passed in early April and published in the Official Gazette on May 8. Sleiman, backed by 10 lawmakers, questioned its constitutionality and referred it to the Constitutional Council. Although it has been passed and published, the law cannot be implemented until the review is completed.


Source: The Daily Star

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