Lebanon realty robust

"Lebanese banks in general and the Central Bank in particular are very strict in real estate financing, which created a shield during the global downturn," says Georges Chehwan, chairman of Plus Properties, a local developer.

Fadi Moussalli, regional director of International Capital Group, believes that the global downturn worked to the country's advantage.

"With a large number of Lebanese expatriates living all over the world, more money was sent back to the country when American banks began failing, which led to an increase in liquidity and this stimulated the economy," he says.

Raya Mamarbachi, director of marketing and strategy at online realty agency simplyzigzag.com, expects the market to continue its upward climb. "Realty values in Lebanon are now 20 per cent higher than this time last year and are set to continue growing by another 10 to 15 per cent over the next six months," she says.Sales may also increase. Elie Harb, president of Coldwell Banker Lebanon, predicts transactions will increase by the year end. "Traditionally, there's always a rush in registering property in December because of the deadlines," says Harb.Chehwan says the market has been boosted by overseas Lebanese and GCC investors, who are drawn to the high ROI (return on investment) and the surplus liquidity that's available in Lebanon's private sector. "The steadily recovering economy and the fact that the majority of people investing in real estate in Lebanon are end-users has given the market added stability." he adds.

Another positive sign is that some banks have relaxed their lending criteria over the past three months, says Harb. "Some banks which were offering 50 per cent LTV (loan to value) are now offering up to 70 per cent."

The scarcity of land combined with the fact that supply isn't keeping up with demand has led to rising prices, says Harb.

"The area in Downtown Beirut overlooking the marina now fetches $7,000-$10,000/m² whereas previously it was lower," notes Mamarbachi.

While some areas in Beirut are unaffordable for middle income earners, areas such as Mar Mkhael and Sioufi are reasonably priced, says Mamarbachi. Developments to look out for include Sama Beirut near Sodeco, she says. "It's a 50-storey skyscraper in Beirut - something this large has never been seen before."

Aya Lowe/ANM