Lebanese real estate lucrative
The Real Estate Association of Lebanon (R.E.A.L) confirmed that the Lebanese real estate market is healthy and safe, describing it as flexible and nourishing. The Real Estate Association of Lebanon pointed out that it
was affected by consumer confidence only, while the supply and demand was always present. The prices are based on the price of the land, the costs of construction and the time factor for the implementation of construction and it encouraged those who wish to buy houses or offices to buy at any time.
Regarding the concern of some observers of developments in Beirut and some areas of Lebanon on the market, the Real Estate Association of Lebanon had a different optimistic view. They summarised the market as being affected by investor confidence which then activates the market — and its absence, making the market freeze.
The Association continued its readings about the reality of today's market stating that some internal events that took place in Lebanon, such as strikes, sit-ins and cutting roads have had some impact on the real estate market in Lebanon. However, they also added that in the real estate market there is a vast difference between the decline in sales and falling prices. The decline in sales is affected by factors like stability and confidence of the investors, while falling prices in all the Lebanese regions means that there is a problem or a crisis — which is not present in Lebanon at all.
Another proof of the correctness of this reading is exemplified by the remarkable growth of rent in the recent period — this is the biggest proof that investors await the growth confidence to implement their pending operations.
This is what makes investors adjust their strategy of their investment and postpone purchases and sales till the growth of confidence and choose to rent instead of purchase.
Those working in the real estate sector, such as owners of lands and buildings, are not going to sell their property for low prices. The bet is still on the growth of confidence, which in turn affects the market. Thus, the speculation of a shrink in the number of construction permits in the future might be true.
The Association at the end of its statement said that there is no fear at all on the Lebanese real estate market; it is flexible, healthy and there is no risk. The market in Lebanon is free and in a simple tour on the projects, it is clear that entrepreneurs do not stop following their constructions and completing the projects. In addition to that, one of the pillars of the Lebanese real estate market is the absence of real estate speculation, and if present, it is very limited. Moreover, the banking sector monitors the loans that are given to customers. All of these factors increase the protection of the real estate sector from any break down or unexpected collapse.