Latest Updates on Real Estate in Lebanon

Real Estate in Lebanon has experienced some severe contrasting periods. In the early 90’s, the real estate sector pulled up the entire economy through intensive programs of reconstruction set by the government and other private institutions.

New buildings were popping up across the whole country. This positive impact of the real estate sector on the Lebanese economy was challenged during the last few years.

The vast majority of residential buildings that were constructed during the last ten years were aimed at high-end customer’s level coming mainly from the Gulf, while internal demand was oriented towards medium standing apartments and properties. Since the external demand, mainly coming from Arabs in the Gulf region was increasing in volume, this has led to a sharp increase in real estate prices. This is not anymore the case especially for the last couple of years. The external demand has stabilized adding to that the government endorsement of laws limiting the percentage of properties that can be sold to foreigners. The real estate market is not flooded by liquidity as it was the case few years ago, and prices are expected to stay stagnant at least for the coming two to three years.

Many positive signs are emerging in this period. The real estate sector is being managed now by more professional institutions. This represents a major switch for this industry where traditionally families run mainly this sector. The best illustration is that investors are now conducting market research and feasibility studies prior to actual constructions. This was not the case 10 years ago. Another positive sign is the return of international investors to downtown Beirut. Virgin, Ericsson and almost all financial institutions in the country have their headquarters there.

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