Real Estate Bubble (boom) In Lebanon

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Lebanon in the early next summer will face a big increase in real estate prices, noting the report that the most important factors in the recovery of real estate in Lebanon, a tourism boom and the increasing number of tourists year after year.

The report added that reported in the “Al Kabass” Kuwaiti tourism is set to Lebanon to bring the money directly and indirectly to the economy, and tourism sector will bring anywhere between four to five billion dollars directly to the economy, and a further range of seven to eight billion dollars indirectly.

The report added that Lebanon went against the current global crisis in terms of movement of the real estate therein, where the value increased by 9% in the first eight months of 2009, with expectations high as between 10 and 15% until 2013, as expatriates and Arab investors are the best investors in the real estate Sector in Lebanon.

The report said that the circular issued by the “Bank of Lebanon,” which granted whereby incentives for commercial banks for providing housing loans, the motivation more important for the continuation of sales of apartments, offering today, commercial banks loans for a period of between 20 and 30 years old, and an interest rate of 5.9% and below.

Also  the “central bank” has played  a major role in moving the real estate market after finally allowed the employee to obtain housing loans long-term Lebanese pound, which has contributed to double the size of the demand for apartments, after it is possible for the employee ownership by obtaining a loan increased its roof than 120 million Lebanese pounds (80 000 dollars) to 180 million (120 thousand dollars), which make housing loans make their way forward, to become a competition among banks to attract buyers in the country apartments address the most prominent in the banking sector.

The report states that, according to the figures, the total value of sales of real estate in Lebanon, a record 10.576.2 billion Lebanese pounds (about $ 7 billion and $ 50 million) in 2009, an increase of 8.3% on an annual basis.Since this rise may be associated with a higher lower number of such sales, the average value of the real estate deal in 2009, increased by 5.8% to reach 126.5 million pounds (about 84 thousand dollars), which shows clearly that real estate prices in Lebanon did not take the direction of regressive, as happened in the markets of the region.

It is expected to continue this trend in Lebanese real estate market during 2011, especially given that the Arab countries, particularly Gulf ones, is experiencing an economic recovery gradually, would encourage real estate investment from these countries, which represent the bulk of real estate investments of Foreign Affairs in Lebanon.