In light of the strong price performance of the Lebanese real estate market during the last three years, a popular topic of discussion across the country has been whether we are in the middle of a market bubble. Are prices destined to fall, or is there truth to the old Lebanese proverb that land in Lebanon is as precious as gold? As with any product or service, real estate prices will always be governed by the laws of supply and demand. In addition to increasing local demand, the real estate market in Lebanon also attracts buyers from the Lebanese expatriate community (which some estimates peg at as much as 15 million), and from wealthy Arabs. In a region mostly dominated by desert plains, Lebanon’s temperate climate, lively nightlife and diverse geography stand out like an oasis in the sands. However, in the first nine months of 2010, sales to
