It is encouraging to be able to report that 2003 saw further movement and increased (mainly foreign and expatriate) demand for properties in the residential market, one which is expected to register as much as 15% annual growth in property transactions. This will come hard on the heels of the 30% growth witnessed in 2002, which saw residential property sales of $635 million. However, developers were, and will continue to be, burdened by the twin evils of political and governmental risk, given the volatile nature of the region and Lebanon’s growing, and apparently unsolvable, debt crisis. The explanation for the increased activity in the residential sector – compared to the relatively sluggish office and retail markets – is because Lebanon is consolidating itself as the Arab world’s premier entertainment and tourist destination. There are additional contributing factors: the results of Paris II created greater confidence in the country’s finances and
