Market trends

While new, high-end residential developments continue to define the current residential market, the bulk of Lebanon’s residential real estate sector is marked by illiquidity and inflexible prices because of many owners’ reluctance to sell and an unwillingness to accept professional valuations. However, a drop in interest rates, prompting investors – notably, Gulf Arabs and Lebanese expats – to turn their attention to real estate, has offset many of these hidebound attitudes. This trend is not only reflected in the heightened development activity along the West Beirut and Solidere seafront, where multi-million dollar apartments are selling well, but in areas hitherto unfancied by foreign Arab nationals, such as Ashrafieh and Gemaizeh. The “local” market is characterized by affordable new build at $500 per m2 plus “old” properties that can be refurbished at the tenants’ leisure. But it is the latter sector that brokers often find difficulties in achieving sales when faced