Lebanon’s Syndicate of Real Estate Brokers and Consultants has warned that a sharp reduction in funding for housing loans under the government’s proposed 2027 budget could limit access to home financing for young people and families.

Funding for the Public Corporation for Housing is expected to be capped at about $20 million, well below the $100 million the corporation had requested to relaunch its housing loan program.

The syndicate said restoring housing loans was a long-awaited and necessary measure, but cautioned that the proposed allocation would significantly reduce the program’s reach and effectiveness.

Homeownership has become increasingly difficult for large segments of Lebanon’s population as purchasing power has deteriorated, financing has become harder to secure and construction and rental costs have continued to rise, it said.

The syndicate described housing finance as an investment not only in homeownership but also in social stability, arguing that it can help young Lebanese remain in the country and establish families there.

A smaller allocation, it warned, would further postpone housing projects, increase financial pressure on households and make it harder for an entire generation to plan for the future.

The economic impact would also extend well beyond those who receive housing loans, affecting real estate, construction and contracting companies, building-material suppliers and a range of related industries, services and professions, the syndicate said.

“Home financing generates genuine demand, encourages investment, creates jobs and drives economic activity, while also providing additional revenues to the state,” it said.

The syndicate argued that restricting funding would weaken one of the main tools available to stimulate economic activity, particularly at a time when the real estate sector needs financing mechanisms that allow citizens to buy homes and convert unmet housing needs into productive economic activity.

It called on the government to reconsider the proposed allocation and urged Parliament, particularly its Finance and Budget Committee, to increase the funding before the 2027 budget is approved.

A larger allocation would allow more young people and families to benefit from the program, provided that eligibility rules are clear and applied fairly, the syndicate said.

It also stressed that additional funding must be paired with an effective and transparent system for administering the loans. Such a mechanism, it said, should ensure that financing reaches those who need it most, give priority to first-time homebuyers and preserve the program’s long-term sustainability.

“Lebanon needs a clear housing policy that puts young people, social stability and economic recovery at the center of its priorities,” the syndicate said.

“We hope Parliament will correct this course and provide the housing sector with the funding it deserves, as a key pillar for keeping Lebanese citizens in their country and revitalizing the economy.”