Latest updates on real estate in Lebanon

The real estate sector in Lebanon has experienced some severe contrasting periods. In the early 1990s, the real estate sector dragged down the entire economy through intensive reconstruction programs established by the government and other private institutions. New buildings were popping up all over the country.

This positive impact of the real estate sector on the Lebanese economy has been questioned in recent years. The vast majority of the residential buildings that were built during the last ten years were directed at the high-end level of clients coming mainly from the Gulf, while the internal demand was oriented towards apartments and mid-level properties. Since external demand, coming mainly from Arabs in the Gulf region, was increasing in volume, this has led to a sharp increase in real estate prices. This is no longer the case, especially in recent years. Foreign demand has stabilized in addition to the approval by the government of laws that limit the percentage of properties that can be sold to foreigners. The real estate market is not awash in liquidity like it was a few years ago, and prices are expected to remain stagnant for at least the next two to three years. Many positive signs are emerging in this period.

The real estate sector is now being managed by more professional institutions. This represents a big change for this industry where traditionally families mainly manage this sector. The best example is that investors are now conducting market research and feasibility studies prior to actual construction. This was not the case 10 years ago.

Another positive sign is the return of international investors to downtown Beirut. Virgin, Ericsson and almost every financial institution in the country have their headquarters there. The great effort that the country has made to attract investors is bearing fruit.

This success is not surprising; Lebanon has many benefits for large corporations. Its location makes it an ideal gateway to the Middle East and the quality of life can meet the expectations of expatriates and makes it easy to implement.

Beyond that, banking laws are favorable for foreign companies wishing to establish themselves in the region. The future can be considered promising. Several major projects are now under construction. In downtown Beirut, a chain reaction is expected which can be explained as follows: the more multinational companies move to downtown Beirut, the more multinational companies will want to locate their offices there. This is not only applicable to the city center; This fact also affects the surrounding neighborhoods.

The real estate market in Lebanon has also seen a dramatic increase in terms of the investments that have been injected into it. These investments come from Arabs, expatriates and foreign investors.

In the entire Arab region, the real estate sector in Lebanon has received the majority of Arab and foreign investment with a huge boost in demand for IT property in Lebanon.

The real estate market in Lebanon was the main recipient of all Arab investments, accounting for 80 percent of such investments.

Beirut, once considered the “Pearl of the Orient”, is now ranked as the most expensive city in the Middle East and Africa, ahead of Dubai, Istanbul and Johannesburg.