As we approach the end of Q1 in 2024, we notice that the real estate market in Lebanon has been under the microscope, given its unique position, economic challenges, and political instability.
In recent years, as you may know, Lebanon’s real estate market has faced significant challenges, fueled by economic turmoil, political instability, and social unrest. Despite these hurdles, we find Lebanese expats and Lebanese citizens still looking to invest in this spirited land.
In this blog, we’ll take a deeper look into the Lebanese real estate situation, to give you a better understanding of this land’s unwavering resilience.
Major Real Estate Sale and Rent Insights in 2023
Before we look at the outlook of the current real estate market and discuss the forecasted expectations, here are a few key takeaways of remarkable tenacity in Lebanon’s real estate sector in 2023. The trends observed include:
- A growth in demand for smaller units, driven by both investment logic and practicality
- A preference for older units is seen as ripe for renovation and thus offering better value
- An increasing number of transactions in property resale.
- A rise in the shift towards renting amidst the unavailability of housing loans.
- A revival of F&B establishments, particularly in Beirut, boosting commercial real estate
Despite hurdles, the Lebanese real estate market’s resilience has been evident with a steady and slow price increase. The diaspora, with their unwavering faith in Lebanon’s potential, is keenly eyeing the market, recognizing that the time to act is now.
It looks like the old saying, “Buy in times of conflict, sell in times of peace,” has been resounding in the minds of investors.
The Major Hurdles in Lebanon’s Real Estate Market
The Lebanese real estate market has been on a rollercoaster ride since 2019, navigating through unprecedented socio-economic challenges and political uncertainties.
Amidst this turbulence, the absence of a president and the presence of a caretaker government have introduced a layer of complexity, impacting regulatory processes and investor confidence.
Additionally, municipalities and registry offices, often the backbone of local development and property registration, have seen disruptions, further complicating the landscape for transactions and development projects.
One of the most significant hurdles has been the freeze on bank loans, a development that has not only stalled new projects but also made it challenging for potential buyers to secure financing. This financial squeeze has led to a contraction in supply, with developers hesitant to embark on new constructions without the security of financial backing.
And the cherry on top of course was the port explosion back in 2020 and the war which recently erupted in Gaza and created another conflict in the South.
How the Lebanese Real Estate Market Is Growing Despite the Challenges
Despite these major setbacks, the Lebanese real estate market continues to attract investors. Lebanon has always been known as a Phoenix, and as it appears, the real estate market is finding its way back up from the ashes. Here are several factors helping with this slow revival:
- Many investors, wary of the diminishing value of cash holdings, turn to property as a safer haven for their capital, especially not having any incentives or confidence in the banking system which crashed in late 2019.
- There’s a widespread belief among investors that the market is poised for a rebound. At the end of the day, there will be a settlement, the only answer which is not available in when and how. Buy real estate and WAIT!!
- The country’s strategic location, rich cultural heritage, and tourism potential continue to present opportunities for long-term growth and development. Just a few days ago Kfardebian and Faraya were named the Arab Winter Resort Capital.
- The resilience and ingenuity of the Lebanese people, coupled with support from the lebanese diaspora, provide a foundation for rebuilding and revitalizing the economy.
- Lebanon is increasingly becoming a favored destination for digital nomads, contributing significantly to the growth of the real estate market. These modern, mobile professionals seek not just temporary lodging but also potential long-term living solutions.
The question isn’t if the real estate market will recover, but when. Lebanon’s charm, compounded by its limited land and the boundless support of its diaspora, sets the stage for a vibrant recovery.
Your Investment Path with OSE Properties
At OSE Properties, we understand the hesitations that come with investing in a market perceived as volatile. Our approach is rooted in a deep understanding of Lebanon’s real estate dynamics, our love for this land, and our unwavering commitment to guiding you through the complexities of investing during uncertain times.
We’ve been operating since 1990, and we offer not just properties but strategic investment opportunities tailored to the unique needs and aspirations of our clients.
Investing in Lebanon’s real estate now is a decision that goes beyond the immediate challenges. It is a belief in the resilience and potential of the market, supported by informed insights and a strategic perspective.
Conclusion
In summary, 2023 has been a year of cautious optimism for Lebanon’s real estate market. Despite administrative hurdles and geopolitical tensions, the sector’s inherent resilience and the strategic opportunities it presents make it an intriguing prospect for investors.
Looking back over 40 years of ups and downs in Lebanon, one thing has consistently held strong: real estate. It’s like a trusted old friend that’s never let us down. For those willing to look beyond the surface, the opportunities for significant returns are endless.
At OSE Properties, we invite you to explore these opportunities with us, leveraging our expertise and local knowledge to unlock the potential of Lebanese real estate.
Frequently Asked Questions (FAQs)
- How does Lebanon’s real estate market compare to the GCC’s?
Lebanon’s real estate market is characterized by its resilience and potential for high returns amidst challenges, in contrast to the GCC’s more stable and government-supported growth. Each offers unique opportunities depending on investor profiles and risk appetites. Reach out to us to discuss your real estate investment in Lebanon.
- What makes now a good time to invest in Lebanese real estate?
The current market conditions in Lebanon, including lower property prices and the potential for significant appreciation post-recovery, present unique investment opportunities for those willing to navigate its complexities. We’re here to help you choose the right real estate investment for you.
