Lebanon’s real estate sector has endured a tumultuous few years, buffeted by successive crises that have left deep marks on its performance and stability. Since the onset of the financial and economic collapse in late 2019, followed by the COVID-19 pandemic and the fallout from the recent Israeli war, the property market has slipped into a prolonged state of stagnation and uncertainty.

Sales and purchases dropped sharply, and the purchasing power of Lebanese citizens significantly declined. In the absence of functional banking systems, real estate became a temporary safe haven for savings threatened by the banking sector’s collapse.

In recent months, however, the market has begun to show signs of life. A relatively calmer political and security landscape has helped restore a degree of lost confidence, both domestically and internationally. Remittances from Lebanese expatriates and renewed investor interest have injected new energy into the sector, with property prices still considered attractive compared to those in neighboring markets.

“There’s noticeable activity in the market. We’re seeing growing enthusiasm among Lebanese looking for land or revisiting old property files to update them,” Massad Fares, Secretary of the Real Estate Developers Association in Lebanon, told Nidaa Al-Watan. “I don’t see anything negative in the sector right now, only positives.”

“At our office, we’re seeing people we haven’t heard from in over five years. Former clients are returning to ask about lands they had checked before the crisis. They’re consulting us about the feasibility of investments they were considering before everything collapsed. This isn’t just anecdotal; colleagues across the sector are experiencing the same thing.”

According to Fares, these inquiries bring a sense of optimism.

“It’s like someone walking into a perfume store, taking a whiff, and leaving, but maybe coming back later to buy. We offer the initial consultation for free, hoping to satisfy clients and attract future investments. We’re also stepping up efforts with Arab countries, offering them detailed and positive updates on Lebanon’s real estate environment.”

He stressed, however, that the sector remains in need of financing, stressing that it can't operate at full capacity without the support of banks and a functioning credit system.

Young investors with limited capital have begun launching small-scale projects, while others are revisiting larger plans.

“For example, we’re currently conducting a feasibility study on a 250,000-square-meter project in Faraya for Lebanese investors, and we’ve started the process of securing subdivision permits,” Fares said.

“There’s a renewed sense of hope,” he added. “Lebanon no longer feels like a closed-off country. Having spent 50 years in real estate, I can tell you that we’re now shifting our focus inward rather than looking abroad, preparing for what’s to come.”

However, he emphasized that broader reconstruction efforts are linked to Lebanon’s overall economic stability.

“People are eager, but many foreign governments are still advising their citizens to wait until all weapons are under the control of the Lebanese state.”

Fares also pointed to the potential benefits of lifting sanctions on Syria, saying it could help Lebanon across multiple dimensions.

“It would facilitate the return of the displaced Syrians to their country, and in turn, ease their movement back and forth to Lebanon. Lebanon has long been a destination not only for Saudis and Kuwaitis but also for Syrians.”

Fares identified Ashrafieh and Ras Beirut as areas witnessing the most significant movement in the real estate sector.

“Both neighborhoods have projects underway or planned. A developer recently approached me to manage a new project, and I’m currently reviewing others in Ashrafieh. Transactions are being completed on plots that have been dormant for years. Every day, we see renewed interest in these zones.”

Still, challenges remain, according to Fares.

“We can’t say the market has fully rebounded,” he cautioned. “There’s still a mismatch between supply and demand. Sellers are asking for high prices, while buyers expect discounts, citing the years-long stagnation. It takes a lot of effort to bring both sides to an agreement, and negotiations are often lengthy.”

Beyond Beirut, demand is growing in unexpected places.

“Clients are applying for permits to build in the south,” Fares said. “That doesn’t mean construction starts immediately, but the intent is there. And if there’s demand in the south, imagine the potential in Batroun, Jbeil, Khaldeh, and Aley.”

However, security concerns still deter investment in some areas.

“In parts of the Bekaa, the market is still frozen,” he said. “But there’s rising demand for land to build future factories. Meanwhile, residential real estate remains largely stagnant due to a lack of financing.”

Some developers offer four-year installment plans, but these are limited in scope.

“Even that is difficult for many,” Fares explained. “Buying a $100,000 home with a four-year payment plan means the buyer must come up with an additional $25,000 every year; it's something few can afford.”

Fares called for a revitalization of Lebanon’s public housing authority.

“In Beirut, construction is thriving because those seeking apartments at $5,000 per square meter don’t need a bank loan. But someone looking to buy a $200,000 apartment likely doesn’t have the cash. That’s why we’re pushing to reform and modernize the Public Corporation for Housing,” he said.

“We want it to be technologically advanced and funded with external capital. In the past, when it provided $180,000 loans payable over 30 years, many middle-income Lebanese were able to buy homes.”

On the issue of reconstruction, Fares said he recently toured Gulf countries and met with top investors and officials.

“They’re ready to help, but no one will invest millions in a country where armed groups operate outside state authority,” he said.

“We hope that Lebanon’s president, prime minister, and parliament speaker can find a way to resolve this issue without escalating tensions with Hezbollah. I believe Hezbollah understands this dynamic and is open to cooperating. After all, they live in this country too. If the only condition is placing weapons under the authority of the state, then let Hezbollah do that and put the matter to rest.”