The business of… Beirut
Despite infrastructure challenges, a hefty national debt, and Lebanon’s $4 billion deficit, the business of Beirut is booming.
June 28, 2010 10:48 by kippreport
A flourishing real estate sector is fueling the expansion of Lebanon’s economy. Billions of dollars in remittances from expatriates working abroad is putting strong upward pressure on property prices. Real estate transactions rose 41 percent in the first quarter of this year, in deals valued at more than $2 billion – more than double the value of first quarter 2009 transactions.
The vibrant real estate industry is strengthened by Lebanon’s expanding economy, more than $6 billion in annual remittances, and large inflows of foreign capital. Foreign buyers accounted for a greater proportion of sales, particularly Gulf Arabs who tend to invest in vacation properties in Lebanon.
Lebanon’s real estate prices remain relatively competitive in the region as a whole, though Beirut posted the highest increases in property prices in the country, up 46 percent over last year, sending locals scurrying for the suburbs.