The real estate market in Syria has witnessed an unprecedented surge in apartment prices and rents for homes and commercial shops over the past several years, turning housing into a distant dream for most families. What was once a basic necessity has become a daily burden on citizens, while government projects remain unable to meet demand or curb prices. It appears that solving the housing crisis is closely linked to addressing the broader economic crisis, restoring production, and rebuilding infrastructure. Safe housing will remain a postponed luxury until comprehensive economic stability is achieved.
Roots of the Crisis and Market Monopoly
Real estate expert Mohammad al-Zafiri told +963 that the main causes of the housing crisis are low supply and high demand. The war, displacement, and destruction have led to a severe shortage of available apartments, while the number of people seeking housing has increased. Al-Zafiri explained that the massive destruction of the housing sector during the war years created a sharp deficit in livable units, even as the population grew in relatively safe areas. The destruction of many shops also drove up the value and rent of the few remaining intact shops.
He added that the decline in construction investments, caused by the high cost of building materials, difficulty in obtaining financing, and complex building permits, has further worsened the crisis. Moreover, the depreciation of the local currency has turned real estate into a savings vehicle to preserve wealth, which in turn fueled demand and drove prices even higher. Al-Zafiri believes that the lack of oversight and the monopolization of the market by certain individuals or large companies have intensified the problem, as they purchase and hoard properties, reducing available supply and inflating prices.
He continued: “Another reason for the crisis is the reliance on foreign currency for most sales and rental transactions. Many price their properties in dollars or equivalent values, which increases the burden on tenants and buyers. Thus, the Syrian real estate sector has turned into a haven for speculation rather than a sector that fulfills housing needs.”
He pointed out that the average price per square meter in upscale areas of Damascus has exceeded 2,000 dollars, while in middle-income neighborhoods it ranges between 600 and 1,000 dollars. Purchasing a 100-square-meter apartment, therefore, requires an amount equivalent to several decades of work income. The rent of an average two-bedroom apartment in the capital no longer falls below two to three million Syrian pounds per month, exceeding most citizens’ salaries. As for commercial shops, rents on main streets have increased by 300% to 500% in recent years, forcing many traders and shop owners to close or relocate to less desirable areas—negatively affecting trade activity and the local economy.
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Deep Social and Economic Impacts
Social researcher Shiraz al-Husseini told +963 that the real estate crisis has had extremely serious social and economic repercussions. She said: “The housing crisis in Syria has led to the disintegration of many families and the return of shared housing among extended families, as young people can no longer afford independent living. It has also delayed marriage, since securing housing has become a major obstacle for those planning to marry.”
She added that rising rents have “forced many businesses to close because they can no longer bear the costs, and have increased the number of families living in unsuitable conditions after failing to pay rent. Some families have moved to rural or cheaper areas, altering the demographic structure of society.”
Residents confirm that the crisis has surpassed endurance limits. Samir, a clothing merchant, told +963: “We closed two branches because rent consumed all profits. Staying in business has become a miracle. There must be regulations or rent ceilings to protect tenants, especially for commercial spaces.”
Faten, a teacher and mother of three, said: “We live with my husband’s parents in one apartment. We have been searching for a home for years, but prices are beyond imagination.”
Dr. Khaled al-Rashed, a dentist, told +963: “My clinic in the old neighborhood was destroyed, and now the rent for a new one equals what it used to cost to buy. The prices are unbelievable.” Merchant Samir Al-Nahhas added that “the real estate market reflects the distortion of the national economy. The solution is not only in rent control but in restarting production and stabilizing the exchange rate.”
International Experiences and Proposed Solutions
Economic expert Ahmad al-Ali believes that solutions are possible if Syria draws on the experiences of countries that faced similar circumstances due to war, disaster, displacement, or sudden demographic shifts.
Al-Ali explained that many countries overcame housing crises through direct government intervention, providing quality housing units at subsidized prices or with easy payment plans. He said: “Housing is one of the major issues many nations have faced. These countries developed models and expertise that can be applied to the Syrian context, especially during the reconstruction phase.”
He told +963 that several countries, such as Turkey, Malaysia, and a number of European nations, offered low-interest loans or financing to middle- and low-income groups to facilitate home ownership or rental. Germany, for example, provides rent subsidies for families unable to afford housing. He added: “Public-private partnerships have proven successful in countries like Indonesia and Morocco, where governments encouraged private developers to build affordable housing through incentives such as tax exemptions, easy procedures, and low-cost land.”
The expert noted that some countries overcame their housing crises by modernizing real estate laws and simplifying property registration and transactions, as seen in Jordan and Tunisia. These measures enhanced market efficiency and accelerated financing and development. Meanwhile, countries such as Egypt and Chile adopted self-build policies supported by technical or financial government aid, easing pressure on the state and providing sustainable local solutions. Morocco and Brazil succeeded in rehabilitating informal settlements by improving infrastructure and basic services instead of demolishing and relocating residents. Turkey’s experience, he added, offered an important model for fair land distribution to ensure that support reaches those in need while diversifying housing types.
Al-Ali believes that some of these approaches can be adapted to Syria’s reality through legal reform, low-interest loans for low-income groups, encouraging supervised self-construction, and strengthening partnerships with the private sector to build affordable supported housing—while controlling unregulated expansion and rehabilitating existing neighborhoods. However, he stressed that the success of these policies requires security and economic stability, anti-corruption measures, and transparency in allocating support. He concluded that the solution remains achievable if there is political will and long-term strategic planning that combines short-, medium-, and long-term actions, along with the development of a uniquely Syrian model that addresses the roots of the crisis rather than its symptoms.
A Housing Ministry official, who preferred to remain anonymous, stated that “the issue is complex and tied to the overall economy. The solutions require time and cooperation among several ministries and cannot be handled by the Ministry of Housing alone.”
