The word on the street has it that times are tough on the Lebanese real estate market. However, opinions vary as to how bad things are: some ponder the idea of a crash while others simply acknowledge stagnation in the sector. The adepts to the latter point of view believe that speaking of a crash assumes there is a real estate bubble where prices are inflated and unreflective of the real value of real estate and that is not the case in Lebanon.
The aficionados in the sector, the ones that speak of stagnation rather than a crash, note that in terms of prices, the real estate trend in Lebanon evolves in thresholds or a staircase form rather than in a cyclical form. In other terms, in tough times, the prices in the sector don’t plummet suddenly but rather stagnate at a certain threshold. Since the evolution is in a staircase form, the listed prices for real estate would have actually increased over the past five years on a macro level. However, the price only deviates from the threshold by 10% or 20% on a micro level, when certain real estate developers enact discounts on their listed prices.
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