Lebanon’s real estate sector in the air – Rebuilding Beirut on hold

At the end of 2006, both good and bad news is emerging from Beirut’s real estate sector. On the positive front, none of Lebanon’s prime properties was directly hit in the summer war between Israel and Hizbullah. No major sell-offs took place, and prices across the board have held steady. Furthermore, there was no widespread freeze on construction: most projects that had broken ground before the war continued shortly after it ended. But if the good news is that most existing projects are moving ahead on schedule, the bad news is that few developers are willing to embark on new ventures under currently unstable conditions in Lebanon: no major deals were concluded in the final months of 2006. There is still interest—and there have been inquiries—but no sales. This wait-and-see attitude is, of course, a reaction to the end-of-year stalemate in Lebanon’s political arena. Real estate only flourishes in a