Confusion Surrounds Allocation of Properties in Basilia City

The initial sessions to allocate residential plots in Basilia City, organised by the Directorate for Implementing Decree 66 in Damascus Governorate, have been marred by unclear procedures and a lack of regulatory framework. This led the governorate to cancel the results of the first allocation session held in early October, calling on eligible stakeholders to restart the process. The decision added to existing confusion and disarray.

Basilia City is the second zoned real estate area established within Damascus under the provisions of Legislative Decree No. 66 of 2012, covering an area of 954 hectares. Allocation refers to an agreement between the Damascus Governorate and the holder of zoning shares, granting the latter a specific, ready-to-build plot with a defined location and specifications, while clarifying the conditions and obligations between the parties. People eligible for allocation, or reallocation, must have documented ownership of zoning shares in the area – typically individuals who owned properties there before the zoning took place and who are able to prove ownership.

On August 19, the Executive Office of the governorate issued Decision No. 985 to begin allocating residential plots to zoning share owners in Basilia City. The decision outlined the process for submitting allocation requests. Following a review of these requests, allocation is either determined by a draw when multiple applications exist for the same plot or granted directly if only one request is received. The allocation process takes place in the form of sessions for which there are no clear rules. Decision No. 985 did not specify a minimum number of plots to be offered for allocation or a minimum number of requests required to initiate an allocation.

The Directorate for Implementing Decree 66 announced the start of the allocation process for the entirety of Basilia City on September 1, set to last for a full year. By September 24, the directorate had accepted 130 allocation requests out of 161 submissions and granted applicants a one-week deadline to complete their documentation. On October 1, it announced the results of the documentation review, and on the following day it held the first allocation session, using either direct allocation or a draw.

According to The Syria Report’s local correspondent, this led to 30 objections from applicants, who cited insufficient time to submit applications and complete their paperwork, resulting in their exclusion from specific plot allocations. According to our correspondent, these objections could have been resolved without cancelling the session’s results. The cancellation, however, angered those who had already been allocated plots, as they found the decision unjustified and blamed the governorate’s mismanagement for the errors.

The Directorate has set October 7 as the new date for receiving the allocation applications, but has not yet set session dates.

One such shareholder, Khaled, told The Syria Report that he sold his shares after his allocation was cancelled. He cited the complexity and lack of clarity in the procedures, along with his inability to wait any longer – seven years after his home in Kafr Sousseh was demolished. Khaled sold his shares for approximately SYP 600 million (around USD 40,000), enough to buy a small apartment on the outskirts of Damascus, he said.

Sources told The Syria Report that the reallocation provided an opportunity for brokers to pressure shareholders into selling at low prices. Brokers used two main arguments to persuade shareholders. The first argument is based on the fear of missing out: shareholders were warned of losing their chance at allocation or having their requests deferred to later stages. Brokers emphasised the slow pace of allocation, with lengthy intervals between sessions, and suggested that any mistakes by shareholders or the governorate could result in their applications being postponed or rejected entirely. This argument resonated particularly with those holding small shares or facing financial difficulties due to ongoing rent payments after the demolition of their homes. The second argument is the high costs of licensing and construction: brokers highlighted the high costs associated with obtaining building permits and developing the plots. For instance, the licensing fees for a single residential plot in the neighbouring Marota City reached SYP 3 billion (around USD 200,000).

Our correspondent noted that many of these brokers are wealthy building contractors or real estate office owners in Damascus. They employ sales agents and transaction facilitators to acquire zoning shares, further complicating the process for individual shareholders.