North of Byblos and along the Mediterranean coast lies the picturesque city of Batroun. While Byblos is experiencing a commercial and residential real estate boom, the city of Batroun remains calm and peaceful, with virgin landscapes at reasonable prices. Ekaruna takes a closer look.
Market Profile
Batroun is one of the oldest cities in the world, and it draws a number of day-trip or weekend tourists looking for a beachside escape from city life or an adventure into the past. With its old village center well-intact, gorgeous mountains, and pleasant, clean rocky beaches, Batroun has potential to grow both as a gateway city of the north and as a center for tourism in northern Lebanon. It is a 45-minute drive away from Beirut, with a clean sea, low air pollution, and calm surroundings.
Predominantly populated today by Lebanese Maronite and Greek Orthodox Christians, Batroun was once a Phoenician stronghold that developed a long history with Christianity, resulting in a deeply Christian culture in the caza that remains evident even today, especially through the many beautiful historic churches that dot the city and surrounding areas. A remarkable increase in population growth in the city over the last decade has been attributed by locals to an influx of Christians from other northern villages, and returning Lebanese expats who are originally from Batroun. According to local developer Maroun Maroun, the population of Batroun has grown "by 30 percent in the last five years."
As more people are flocking to Batroun, the need for housing and small commercial outfits has increased markedly, and a handful of local developers are taking on the demand with a mix of small commercial projects and housing projects that cover the full economic spectrum from low-end to high-end developments. A local school is being expanded by a full floor, a shopping center of 15 to 20 stores is in the works, and a big meeting hall is being added to a suburban church to serve an increasing number of church-goers in the area, to name just a few projects that reflect population growth. Given Batroun's zoning and building code with a considerably low exploitation factor that is characteristic of areas in Lebanon outside large cities, residential buildings are usually built between two and four floors high. This regulation keeps new developments in line with the urban fabric of existing real estate in the area, at least to some extent. ""This is a primarily touristic and residential area, with 3 to 4-storey buildings ranging from 6 to 15 apartments each being the norm," says Tony Nasr, developer and founder of engineering and contracting company NASECO SARL. Maroun Maroun has two 600m2 villas under construction, a development that answers well to the zoning and upper class residents of the area.
Concerning the market for tourism, the newest resort is the Batroun Village Club, which is located further up the mountainside. It has a small number of upscale rooms, caves, and bungalows ideal for romantic escapes or for holding large outdoor events in summer like conferences or weddings. On the beachfront, the 60-room San Stephano Hotel, the Sawary Hotel, and Aqualand Hotel are the only hotels in the area. "Although adding an extension to the San Stephano is in the works, the area could use another one or two more hotels," says Nasr. While the owner of the San Stephano may acquire a 15,000m2 plot next to his property, the area could still use more options for visitors with different budgets and tastes. "A hotel would be really interesting to build here," Maroun agrees. However, while local investors are rumored to have been discussing the prospects of building another hotel in Batroun, evidence on the ground of any such talk is - until now - going nowhere concrete.
Prices
Prices in Batroun are rising, and according to Nasr, prices have doubled over the last three years, following the jump in prices in Beirut. "In 2007 I was selling at around 500 USD per sqm, and now I am selling around 1200, 1300, 1400 USD because of land prices," he says. "Batroun's built-up area is not quite large," he adds.
"Prices are an issue, they are starting to go high," agrees Batroun developer Joseph Hoayek, who estimates Batroun properties to be worth between 250 and 1000 USD per sqm, for land in both the city and suburbs. Outside of Batroun land can be found for 50 USD per sqm, but the nearer plots are to the city of Batroun, the higher prices rise, reaching around 150 USD per sqm at about 5 to 10 km away from the city.
For built-up area, local developers set their figures in the range of 1000 to 1500 USD per sqm, with mid-range apartments falling in the 1200 to 1300 USD per sqm bracket, and high-end projects falling in the 1400 to 1500 USD price range.
For commercial real estate, according to Nasr, land can go up to 1000 USD per sqm, commercial built-up area (shops and retail outlets) can reach 3000 to 4000 USD per sqm, and in the city the rental price can be anywhere between 4 to 10 percent of the value of the rented area. "It should be between 7 and 10 percent, but we haven't reached that yet," Nasr says.
Recent Progress
Perhaps one reason for the increasing attractiveness of Batroun is a result of the work being done by Mr. Gebran Bassil, a Lebanese politician with a growing reputation for taking action. Originally from Batroun, Bassil has spearheaded numerous initiatives to help improve the city and encourage development. At present, Bassil is coordinating with the Ministry of Transportation to revamp the city's port, to extend the port as an area for touristic and local commercial purposes. The project would attract retail outlets like restaurants, pubs, and small shops to cluster in the port area, creating a lively area that would lure in more visitors. The port would also have a positive effect on the businesses of local fishermen, as well as local merchants who would benefit from increased footfall in the village.
Regarding infrastructure, there used to be a sewage problem in Batroun, but due to the efforts of Bassil in his recent post as Minister of Energy and Water, these issues are in the process of being resolved. The project to connect the entire caza to fully functional waste treatment plants is advanced for Lebanon, and will be completed in one to two-years-time. The city of Batroun itself is projected to be completely hooked up by the end of the year, with the outlying areas due to be on the network about 6 to 8 months after that. The old city is already hooked up to a sewage network, as the old city has been prioritized in Batroun's urban planning.
The municipality has also made great progress on a cultural level. In recent years, the narrow streets of the old city were renovated to form an "Old Souk" that was built out of sandstone from Batroun. In the old city, many traditional houses with vaulted ceilings were renovated and converted into restaurants, nightclubs, or pubs. Though it is difficult to obtain permits to build within the old city, permits to renovate according to strict guidelines from the Ministry of Culture and DGA (Director General of Antiquities) are still possible to obtain. There are also many old structures outside the old city that represent opportunities to do other charming projects in line with the spirit of the old city.
Old Batroun
Batroun is becoming famous for its old city and archaeological ruins in a place that is more off the beaten path than Byblos. As many of Beirut's heritage structures have been erased and as the example of Byblos proves that heritage structures create value for a city and increase its ability to attract visitors, it is in the interest of the Batroun to preserve and leverage its heritage for economic gain.
In addition to his other projects, Bassil has been taking action to preserve the cultural heritage of Batroun. In addition to helping restore its famous Saint Estephan Church, he is also buying up many of Batroun's old houses under his own personal initiative and private expense, through a company known as Lebanese Old Houses. With a background in civil engineering, Bassil was a developer before beginning his political career, and he is sensitive to what is happening in the real estate market today with the destruction of old houses, especially in Beirut. Over the last few years, he began buying old houses in the caza of Batroun, both in the suburbs and the city. Bassil had a pragmatic vision to simultaneously do business and preserve Batroun's architectural heritage. Heritage quarters, when combined with the right strategy, can generate lucrative tourism to the benefit of a whole area.
Under the name of the company, Bassil began restoring the sandy and white stone houses characteristic of Batroun with natural stones. He has brought many houses back to life by removing any plaster to revive the original wood and stone facades that Batroun's houses are famous for. In an effort to save some of the heritage that Beirut is steadily losing, Bassil has also been buying old stones, wood, windows, doors, and other heritage features from the demolition sites of old houses in Beirut. He then uses the materials to either develop new old houses or to help finish off the restoration of houses in Batroun which have been partially demolished. Once restored, the houses are put on the market to be resold. With Lebanese Old Houses, Bassil has proven that one can make money, and a positive difference. Thanks to Bassil and other like-minded Batroun residents with capital to invest in restoration work, it appears that Old Batroun will see its way into another century.
The Next Jbeil?
Apart from its daytime reputation as a quaint beachside village with beautiful historic houses and ruins, Batroun has also established a reputation for being the nightspot of the north, with a main stretch of road in the new town center hosting an abundance of mid-budget nightclubs and bars. The rise of Byblos, however, has threatened this sector of activity, as more young clubbers and party-goers head to Byblos instead, creating a vacuum in Batroun's profitable nightlife sector.
"At least ten restaurants have shut down in the last two years," says Maroun. "The growth of Byblos has had a bad impact on Batroun." Due to the market's shift in focus to Byblos, the number of restaurants and bars in Batroun has been on a steady decline, while the number of restaurants and bars in Byblos continues to rise. As Byblos is a bigger city with more than twice the population of Batroun, the phenomenon is only logical. If Batroun does not differentiate itself, only more of the same type of losses can follow.
Residentially, however, the two cities complement each other, according to Hoayek. He calls Batroun the "sister city" of "Byblos the star". With the growth of Byblos, the difference in the type of lifestyle available between the two cities is increasing. Batroun offers a calmer pace of living in a more pastoral setting, while Byblos offers a more urban experience.
"Each city has its own demands for apartments," Hoayek says. "Batroun is accessible for a lower budget than Byblos, and people choose where they want to live based on what is within their reach, and what kind of lifestyle they want. Plus, the closer you get to Beirut, the more prices rise."
Though Batroun's prominence in the north is growing, developers do not anticipate any growth as a result of Byblos' expansion. "There is always growth, but at a low rate, not like Byblos, which has jumped tremendously compared to Batroun," says Hoayek.
Investment Opportunities
Although the market in Batroun for developers does not represent big profits, there is still money to be made. It is an unsaturated market, unlike Beirut, with a healthy demand. And it also requires less investment capital to develop a project. For a small developer starting out, Batroun is a good market to invest a little, do some low-rise buildings, and get some experience. "You don't need a big budget to build," says Hoayek, "You can build something for 2 million dollars that would cost 20 million or more in Beirut," he adds.
"Because the beach is clean and land is still affordable, there is potential to invest in resorts, but for big projects the land is not available," says Nasr. Also, for building any kind of resort, Batroun has limits. "Only 200,000 sqm of beach is available," he says. "That is not a lot to build on, and the old city is preserved; it would not be allowed to construct a resort there."
In the end, Batroun's main asset is its charm, and its rich heritage, sitting in peaceful harmony beside the breathtaking beauty of the Mediterranean Sea. Perhaps more interesting for Batroun than a resort hotel would be a string of bed and breakfast houses, fashioned from old houses that are a stone's throw from picturesque, pebble beaches. For local developers who choose to develop in Batroun because of their connections and a desire to do something nice for their city, there are plenty of clever projects that could be done to drive more revenue and touristic, cultural activities into the city center.
Batroun cannot be another Byblos, nor should it be. As one of the world's oldest cities, it has something that time alone has given it - a unique character, shaped by its rich history. Any development that will bring economic returns back to the city must be one that complements that character, not one that strives to overpower or disregard it in the name of modernity. This character is what people come to see and experience when they visit Batroun, and given that such enclaves of hidden cultural treasures are fast disappearing in Lebanon, especially in Beirut, people will soon be willing to pay good money to experience the charm of the past, whether it be for a weekend, a summer... or a lifetime.
© Ekaruna 2011
