The Syrian real estate market presents a perplexing paradox. On one hand, there’s a visible oversupply of properties, with many units sitting vacant amidst a struggling economy. On the other, prices remain stubbornly high, defying logic and making homeownership a distant dream for most Syrians.

Despite an oversupply of properties and a struggling economy (including recent declines in food prices and the US Dollar), property sales remain surprisingly active. This seemingly illogical trend can be attributed to several key factors:

1. Capital Flight and Wealth Preservation:

Currency Devaluation: Even with recent dollar depreciation, the Syrian Pound remains highly unstable. Selling property and converting funds into more stable currencies (like USD or EUR) remains a primary strategy for preserving wealth.
Fear of Further Economic Collapse: The fear of future economic instability, including potential hyperinflation and currency devaluation, drives many to liquidate assets as a form of risk mitigation.
Investing Abroad: Proceeds from property sales are often used to invest in assets outside of Syria, such as property or businesses in more stable countries.

2. Forced Sales and Economic Hardship:

Debt Collection: Economic downturn and unemployment have led to increased financial hardship. Many Syrians are unable to meet their financial obligations, leading to forced property sales to repay debts.
Survival Needs: Economic hardship and the rising cost of living (despite recent food price declines, other essential goods remain expensive) may force individuals to sell their properties to cover basic living expenses, medical costs, or to emigrate.

3. Political Uncertainty and Fear:

Instability and Power Struggles: The post-regime change period has seen ongoing political instability, power struggles, and the potential for renewed conflict. This creates a climate of fear and uncertainty, driving many to liquidate assets as a form of risk mitigation.
Property Rights Uncertainty: The lack of clear property rights and the potential for future property disputes or expropriation further incentivizes property sales.

Psychological Factors:

Anchoring Bias: Property owners may be anchored to pre-war prices or past valuations, making them reluctant to significantly lower their asking prices.
Fear of Missing Out (FOMO): Some sellers may fear that if they lower their prices now, they might miss out on a potential future price rebound, especially if the political and economic situation stabilizes.
Lack of Transparency and Market Information:

Limited Data Availability: Reliable data on property prices, market trends, and rental rates is scarce. This lack of transparency makes it difficult for both buyers and sellers to accurately assess market value.
Information Asymmetry: Sellers may have better information about market conditions and potential buyers than buyers themselves. This information asymmetry can give sellers an advantage in negotiations.
Speculation and Hoarding:

Long-Term Investment: Some property owners may view real estate as a long-term investment, regardless of the current economic conditions. They may be holding onto their properties in anticipation of future price appreciation, even if it means foregoing immediate profits.
Role of Foreign Actors:

Limited Impact of Local Economic Conditions: The presence of foreign investors or those with access to foreign currency may distort the local market. Their demand for property, driven by factors beyond the local economy, can keep prices artificially high.
Limited Buyer Pool:

Reduced Purchasing Power: While food prices may have fallen, the overall cost of living remains high for many Syrians. This limits the pool of potential buyers and reduces their purchasing power.
Social and Cultural Factors:

Property as a Status Symbol: In many societies, property ownership is seen as a symbol of wealth and social status. This can influence pricing decisions, as sellers may be reluctant to sell at prices that they perceive as devaluing their social standing.  
It’s important to remember:

This is a complex situation with no easy answers.
The Syrian real estate market is deeply impacted by political, economic, and social factors that are constantly evolving.

Everything can be change in 13 days)))