FACTS & STATISTICS

The Real Estate Sector,
A Major Pillar of the Lebanese Economy

Despite the global economical recession, its slow recovery and Lebanon’s unstable political situation, the real estate industry maintained a steadiness through an increasingly continuous property demand and a strong immune economy that has largely eluded the impact of the global crisis. This resulted in a remarkable growth in this historically solid sector. "we expect this growth to continue", said Mr. Bilal Alayli, the head of the orders of engineers in Lebanon. Mr. Antoine Chamoun, GM at Bank of Beirut invest also stated that "people are realizing that real estate is the best investment they can make". The question resides on whether there are sufficient positive conditions and opportunities to sustain this growth.

The current political situation played a major role in the boom that has clearly touched the real estate sector in Lebanon recently. According to Bank Audi 2010’s report, the above is a consequence to the stability that continues to reign since Doha agreement in 2008, sending positive signals to regional and foreign investors and leading a favorable impact on the investment climate at large.

Due to this attractive sector and the impact of the crisis on Dubai and other GCC countries, Lebanon’s Real Estate market became a target to a number of Arab investors and wealthy Lebanese expatriates. According to Bank Audi’s June 2010 report foreign investment continue to grow after a 20% growth last year. This was also revealed through the impressive results in the increasing number of the real estate developments across Lebanon. Mr. Bilal Alayli claimed that there were 200 empty plots in Beirut at the beginning of 2009 and the recent statistics shows that 61 plots are developed (Executive 2009-2010). These positive developments prove the country’s resiliency amid an enduring global crisis, and have further improved Lebanon reputation as a very attractive investment destination. Below are some prime examples of this phenomenon:

        .  Plus Tower I and II, Yarze 76, Yarze Gardens and Tilal Bhersaf by Plus Properties
        .  Damac Tower by Damac
        .  Beirut Gate project by Abu Dhabi Investment House and Sayfco

The real estate market has maintained its prosperity under favorable and encouraging conditions leading to an increasingly continuous demand. The latter comes as a consequence to several factors. First, there is a constant need for housing supported by favorable demographic trends and stimulated by attractive off plan prices especially outside Beirut. Although the properties’ value has risen significantly, price increase should be moderate this year compared to a more than 30% jump since 2007 affirmed Mr. Marwan Barakat, head of research at Bank Audi. Also, the central Bank has been supporting this trend by giving incentives to banks to increase house loans at very competitive rates. The commercial banks reacted accordingly and has been developing housing loans with lower interest rates, thus encouraging Lebanese to invest in this sector and hence resulting in an increase in demand.

The Lebanese real estate sector has risen up to all challenges and upheld its growth preserving its position as a major pillar of the Lebanese economy.