Lebanon is one of the most stable countries in the Middle East. It is bordered by Israel to the southwest and Syria to the north. It is one of the oldest countries in the world. Remnants of old buildings that date back thousands of years still stand in cities such as Tripoli and Beirut. Conditions in Beirut were not ideal five or six years ago, but the city has stabilized considerably since then. In May of last year, Beirut was officially recognized as one of the Seven Wonder Cities of the World.
The real estate market in Lebanon is growing. Since 2005, the country has been stuck in somewhat of a housing bubble. Whereas the GDP of the country has only grown by 42% since 2005, property values have risen exponentially. However, if you were to jump in the real estate market in Lebanon at this moment, you would need to be very careful. The Lebanon real estate market is relatively stagnant at the moment.
The Current Situation
At the moment, the real estate market doesn’t look very appealing to foreign investors. There’s relatively little activity in the market, while the rate at which prices were increasing has fallen across the market. There are two reasons for this. First, the political uncertainty has deterred many foreign investors. Foreign investors are wary of putting too much money in the Lebanese housing markets, since there’s a very strong likelihood that the market might implode if the political situation isn’t resolved.
Furthermore, another major reason for the decrease in investment is rising prices in the country. As mentioned above, Lebanon has been stuck in a housing bubble since 2005. Today, prices are so high that the vast majority of the population can’t even afford to purchase a livable home. Needless to say, demand has fallen considerably. As a result, most foreign investors are now predicting that a correction in the market is inevitable. This would mean that the values of any long-term holdings are going to fall drastically if a correction were to take place in the market. This is one of the reasons why most property investors are only making short-term investments in the Lebanese market.
Finding a Realtor
If you want to buy property in the Lebanese real estate market, it’s imperative that you find a realtor who knows the local neighborhoods. You should first get an idea of the property prices within the city, and then read about how the property values vary in different markets across the city. It’s important that you find a realtor who specializes in the types of properties you are looking for. Ideally, given the current situation, it would be best for you to make short-term investments only. This will help you protect your investment, and you can sell it if there’s volatility in the market.