The components of the most resilient market in the region

ENAR

Price increases for the Lebanese real estate market are not expected for the remainder of this year, in fact the buzzwords have become stability and correction. But we must not forget that the real estate sector in 2008 has been very buoyant overall. Prices in the first half of the year rose around 40% on average and two to three years prior to that, there were also year-on-year price increases averaging 30%. The main factors for the increase in prices since 2005 have been rising construction costs, expectations, financing options and most importantly demand. Since the economic crisis began in September 2008, we have seen a slowdown in the number of requests for new properties. In turn, prices have stabilized and for certain over-priced developments, a correction is underway, bringing them in line with the market. Whether developers are passing on reduced construction costs or simply revising their profit expectations