Lebanon’s real estate sector remains largely frozen, with limited activity and few new projects, as political stagnation and the absence of bank financing continue to weigh on the market, industry sources said.

Massad Fares, Secretary General of the Association of Real Estate Developers in Lebanon, told Nidaa Al-Watan that the market is almost at a standstill because supply is extremely limited, and there are no new projects of note. While some developers have started small projects using personal funds, Fares said these efforts are insufficient to sustain a functioning market.

“The core problem is the absence of bank financing,” he explained. “A developer can buy land and start a project partially, but they cannot fully finance it on their own. For a project to be financially viable, bank loans are essential. However, today, banks are effectively out of the game.”

He compared the current situation to pre-1990s Lebanon, when construction relied on limited individual funding, without the structured banking system that once fueled both developer and buyer activity.

Current market activity is concentrated in resale apartments, Fares said.

“Buyers with cash in U.S. dollars can still purchase, but those without liquidity cannot enter the market, especially for new apartments. Some people sell larger units to buy smaller ones or sell properties due to emigration or the need for cash,” he added.

Fares warned that the stagnation in real estate affects the wider economy.

“If the real estate sector does not move, the broader economy cannot move either. This sector is a key driver of economic activity, supporting more than seventy professions, including electricians, carpenters, metalworkers, and construction laborers.”

The rental market has seen some localized demand, particularly in areas considered safer amid Israeli threats, Fares said.

“There has been talk of price increases due to families relocating from the south or suburbs because of the war, but rental prices were already high during the summer. As a result, there is little room for further increases,” he noted.

Demand is stronger in mountainous areas and the Metn region, as residents seek to move away from Beirut, but this has not driven additional price spikes.

Fares said large-scale projects remain unlikely in the near term due to the ongoing absence of bank financing.

“What we see today are small initiatives — buildings of 2,000 to 6,000 square meters — but larger projects exceeding 10,000 or 20,000 square meters will not return until banks resume lending to the sector,” he said.

He stressed that citizens are also constrained by the lack of financing, making state intervention essential.

“Even those who want to build or buy a home need financial facilities. The government has a central role in addressing housing issues,” he said.

Fares called for new, sustainable housing programs in partnership between the public and private sectors.

“The State can provide regulatory and financial frameworks, while the private sector carries out implementation. This would revive the real estate market while providing decent, affordable housing,” he said.

He added that past initiatives, including subsidized Central Bank loans and cooperative housing programs for public-sector employees, helped thousands of families acquire homes.

“Today, the goal is to design programs that avoid past mistakes and respond to current needs. People need homes, especially after the destruction caused by the recent war, and a stable economy cannot be built without a healthy and fair housing market,” Fares concluded.