Frontier has recently carried out several assessments on the Libyan real estate market, finding that the sector has been one of the most significantly affected by the 2011 conflict.

As the interim government attempts to unravel the former regime’s real estate strategy and its labyrinthine portfolio of projects, Tripoli and its environs remain peppered with half-finished towers, housing projects, shopping malls and hotels. Many forlorn-looking construction sites in the city still have cranes and other equipment in the same positions that contractors left them when they hastily exited Libya in February 2011, with the vast majority yet to return.

With the exception of one hotel in a prominent location on the Tripoli seafront, construction on virtually all major projects has been suspended indefinitely, with international contractors unwilling or unable to resume work. Activity is likely to remain frozen while the new government reviews contracts, assesses the viability of schemes and perhaps restructures entities like the Economic and Social Development Fund (ESDF), many of whose subsidiaries were involved in many real estate and tourism projects. 

But at a local, smaller-scale level, the real estate market has been more complex. While activity here has also been stymied, with transactions still unable to be officially approved, a lack of formal control over the market has led to a flurry of informal transactions to avoid duties and taxes which would normally be levied by the government.

Asking prices for land in key areas of Tripoli appear to have jumped in 2012, while concerns over security have shifted local dynamics for the residential and commercial market. Despite political uncertainty, there are waiting lists at some of the few purpose-built commercial properties in the capital, while in some cases asking prices for expatriate-oriented housing are now higher than pre-2011 levels.

Local brokers also report an inflow of interest and investment in Tripoli from other areas of Libya, including Misrata and towns in the western mountains, as powerful - and often wealthy - regional groups are keen to maintain commercial interests in the capital and remain geographically close to the centre of government. 

A detailed analysis of the Tripoli real estate market, including districts, pricing, government entities and project profiles, is included in our forthcoming report, which will be available to purchase through The Libya Report website.

Frontier is the publisher of The Libya Report and also offers a range of consulting and research services. We have carried out over 30 market and feasibility studies in Libya since 2008, including projects in Tripoli, Benghazi, Sebha and Ghadames, and have an office in Tripoli.

For further information on our services please email beth.hepworth@frontiermea.com