Lebanon’s property boom
Despite the geo-political climate in the region, Lebanon’s property market is on the rise. Prices are going up, interest rates are down and young people are rushing to buy property. Here are a few reasons why Lebanon’s real estate market is expected to keep growing.
1. Limited land space
There is a proverb in Lebanon: “Anything can be imported, except land.” This holds true today as it did centuries ago. Lebanon’s area is 10,452 squared KM. The population is above 4 million, as much as the population of New Zealand. Yet the chaos that allowed random constructions during the war is now being strictly regulated by the government and local councils. This is limiting what can be done with a land as far as zoning and building permits go. This is driving prices upwards with no signs of stopping in sight.
2. Oil (not only olive oil)
Oil and gas have been discovered off the entire coast of Lebanon and is valued in the trillions of dollars. This will attract foreign investment and an “oil rush” will ensue. This will also affect land and housing prices, just as it did in Dubai two decades ago.
3. Geo-political climate
With the current developments in the region, many are predicting political and security stability. This is expected to drive investment and push tourism numbers through, what seemed to be, stagnating touristic sector.
4. Construction boom
Well, this is the good kind of Lebanese boom. A record number of apartments and units are being sold almost off the plan. This is a clear sign of high market demand, driven by mainly young couples looking for their first home.
5. Bank loans accessiblity
Lebanon is still relatively a more difficult country to get a bank loan. With 20% demanded by banks as a down payment, it seems clear that strategy has been successful, proving that indeed many are able to save for a deposit and carry through with their monthly payments.
All in all, the climate is ready for a real estate expansion in Lebanon. But for once, it will be a careful, planned, council-approved development that will ensure proper infrastructure to service all the emerging new developments.