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House And Home: New interest in old-city charm

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  • House And Home: New interest in old-city charm

    HOUSE AND HOME: New interest in old-city charm

    By Ferry Biedermann, Financial Times
    Published: Jul 07, 2007


    Lebanon's 1975-1990 civil war ripped the heart out of Beirut, the
    one-time "Paris of the -Middle East", both literally and figuratively.
    Not only was the city centre comprehensively destroyed but the
    cosmopolitan spirit of a place that had prided itself on the diversity
    of its people and the intermingling of cultures was badly damaged.

    The once-upmarket area straddling Clemenceau Street in West Beirut was
    one of the city's most mixed neighbourhoods in the prewar era. Years of
    urban decay and paralysis followed the conflict but it is now booming
    again, partly because of nostalgia among some Lebanese for the big-city
    feel it once offered.

    "This is the only part of Beirut that does not feel like a ghetto,"
    says Dinna Debbas, a young photographer who started renting a beautiful
    old house with high ceilings and patterned tiled floors there three
    years ago. She likes the feeling of "anonymity" that she says the
    neighbourhood affords. But, above all, it is an area where Christians,
    Muslims and Druze, the country's three main groups, live side by side.

    Clemenceau, comprising the smaller areas of Jounblat, Wardiyeh and
    Kantari, borders on the now partly restored city centre. While the old
    downtown district is being renovated meticulously, by the late prime
    minister Rafiq Hariri's Solid?Ã?¨re development company, many Beirutis
    have not warmed to it because of its sometimes sterile feel and its
    exclusively high-end appeal.

    Prices for new apartments in the city centre, also called Solid?Ã?¨re
    after the company, vary between $3,000 and $7,000 per square metre and
    they are rising. Rents for shops and restaurants are so high that only
    the biggest or most exclusive brands can afford a downtown presence.

    Many of the retail spaces stand empty and were so even before the
    opposition, led by the Shia Hizbollah movement, started an ongoing
    sit-in right in the centre of town to bring down the government.
    Political uncertainty keeps playing a role in Beirut's development as
    many businesses are relocating from the city centre to less volatile
    shopping districts elsewhere.

    The Clemenceau area has all the advantages of a central location,
    between downtown and the main Hamra area of West Beirut, while offering
    a more authentic living experience to those who value that, says Raja
    Makarem, of Beirut's Ramco real estate consultancy.

    And the prices are still not at the levels of Solid?Ã?¨re. The average
    size of apartments is between 250 sq metres and 300 sq metres, which is
    on the small side by luxury Lebanese standards. Prices for new
    developments average between $1,800 and $2,700 per square metre.

    Clemenceau was heavily damaged during the war because of its proximity
    to the front line. The pockmarked shell of the Holiday Inn hotel on its
    north-eastern corner is a reminder of "the war of the hotels", when
    militias used the high-rise buildings as firing positions. The most
    damaged blocks were torn down and Clemenceau still has a large
    concentration of empty plots that have now mostly been sold off to
    developers.

    But it has taken the neighbourhood longer to become attractive than
    some other areas of Ras Beirut, the part of the capital that stretches
    from Solid?Ã?¨re to the west. The main reason, says Makarem, was the
    presence of many civil war refugees who squatted in abandoned
    buildings. They were mainly Shia Muslims from the south who were
    occupying properties often belonging to Christian and sometimes Jewish
    families who had fled early on in the war. Only after the last of the
    refugees left about three years ago did Clemenceau really start to take
    off.

    But the memory of the civil war and its forcible displacement of
    peoplestill sometimes impedes development. Beirut is a strongly
    segregated city17 years after the war ended. Christian East Beirut is
    overwhelmingly Christian while the Shia are concentrated in the
    southern neighbourhoods that bore the brunt of last summer's Israeli
    bombardments. Ras Beirut is more mixed, partly because of the presence
    of universities and other institutions, but many areas are heavily
    Sunni.

    Marwan Naaman's family fled Clemenceau for a Christian area during the
    civil war. Prior to last summer's fighting between Hizbollah and Israel
    he had decided to move back to the neighbourhood. But the summer
    conflict made him change his mind because Shia refugees from the south
    started pouring into Clemenceau. He is now worried that the
    neighbourhood will be overrun whenever there is a flare-up, "and I
    don't want to put myself ever again in such a situation".

    The conflict last summer put an obvious damper on real estate activity
    but prices in Beirut, which had risen sharply over the previous few
    years, have not fallen. Developers and agents say that some investors
    from the Gulf are now hesitant to buy but, in any case, they tend to
    favour the Solid?Ã?¨re area and the seafront Corniche. Clemenceau is
    particularly popular with young Lebanese professionals and with the
    many Lebanese living abroad.

    "Most of the inquiries that I get are from Lebanese expatriates who are
    looking for a pied-?Ã? -terre in Beirutor for an investment," says Osama
    Taha of the Iqarat.Lebanon real estate agency, which has its offices on
    Clemenceau Street.

    One example is a Lebanese man working in the Gulf who asked him to find
    an apartment in the area for his two children, who are about to enrol
    at the nearby American University of Beirut (AUB). Taha found him a
    $300,000 apartment of about 190 sq metres.

    The neighbourhood borders on or includes three universities - the AUB,
    the Lebanese University and the Armenian Haigazian University - a
    business school, the French ?Ã?cole Sup?Ã?©rieure des Affaires and three
    large hospitals - the American University Hospital, the Trad hospital
    and the gleaming, recently opened, glass, steel and stone Clemenceau
    Medical Centre (CMC), which is associated with the American Johns
    Hopkins hospital. In 2006, a year after the CMC opened its doors,
    prices of nearby properties had risen by 30 per cent, according to one
    study.

    The presence of all these big institutions and Clemenceau's location on
    the axis between east and west mean that traffic has become
    increasingly congested. Even so, most of the area retains a remarkably
    residential feel and there is hardly any nightlife or shopping to speak
    of. "At night you only see rats in the streets," says Taha.

    The neighbourhood is not very successful in retaining whatever
    entertainment is on offer. Two years ago the Medina Theatre left its
    premises for nearby Hamra Street because the landlord in Clemenceau
    raised the rent.

    Bars and restaurants are the main form of entertainment in Beirut but
    Clemenceau must be one of the least endowed areas in that respect,
    which many residents count as a blessing. The Gemmayzeh neighbourhood
    on the other side of Solid?Ã?¨re has exploded as a night spot over the
    past couple of years and life has become unbearable for many residents
    near its main street, through which traffic and revellers pulse deep
    into the night.

    Clemenceau's few nocturnal attractions are in line with the area's
    restrained and somewhat eclectic outlook. Bardo is a bar with a
    Buddhist theme in an old Lebanese house, run by Mazen Khaled, the son
    of a Shia spiritual leader. The atmosphere is laid-back and Khaled says
    he attracts a clientele from all over town. He recently moved into the
    area himself and says that he loves its "cosmopolitan" feel.

    Apart from the mix of residents, the appeal of Clemenceau also has to
    do with the stately old villas and houses that are left in part of the
    neighbourhood. Veteran Druze leader Walid Jumblatt has a home there and
    so have several other old Lebanese families. The gardens of the
    mansions make the area one of the few relatively green ones in town.

    But some of the old houses are in danger of being torn down and many
    have already disappeared. Beirut's zoning regulations mean that profit
    margins for developers are large. The incentive to tear down old
    buildings is great, as their maintenance or renovation is costly and
    income from rent does not match the value of the land they sit on. In
    Lebanon, even buildings that are listed as protected are vulnerable to
    the profit motive.

    And prices are booming, says Wissam Fayad of SV Properties &
    Construction in Clemenceau. He is over-seeing the construction of a
    21-storey residential building in the area. The 460 sq metre luxury
    apartments were all sold for about $1m when the project started in
    2004. Now, even before completion, they are being sold on for at least
    $1.5m.

    Fortunately, there are some owners in Clemenceau who are not very
    likely to give up on their grand villas. Others might want to sell but
    because of generations of dividing up the properties between heirs, the
    multitude of owners do not agree on the right time or the right price
    to put their property on the market, says Taha. But the pressure to
    sell is huge as fewer plots are available and demand increases. And
    many of the young professionals who now rent the old houses fear that
    in 10 years' time Clemenceau might have lost its prewar, old Beirut
    feel.
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