Statistics showed that Lebanon’s real estate sector is a stable investment opportunity even during the country’s worst economic crisis. The increase in real estate activity mainly reflects the continuous migration of some locked deposits out of the banking sector towards real estate. Depositors tend to transfer their money out of Lebanese banks to safer investments, such as properties. However, the stock of residential units remains significantly higher than the actual demand since most of the Lebanese citizens and especially the youth find it hard to buy an apartment, with the absence of loan facilities, with no government plan to support them.
According to the data from the General Directorate of Land Registry and Cadastre (LRC), the number of Real estate (RE) transactions which may include one or more realties, rose by a yearly 63.25% to stand at 82,202 transactions by December 2020. In its turn, the value of total RE transactions stood at $14.38B by December 2020, compared to $6.84B in the same period last year, up by 110.35%. As such, the average value per transaction increased from $135,828 in December 2019 to $175,015 in the same period last year.
On a monthly basis, the number of RE transactions stood at 13,391 in the month of December 2020, which was almost 2 times higher than the 6,189 transactions recorded in December 2019. It also seems that foreigners performed 241 transactions of December’s total RE transactions, compared to 93 transactions in December 2019. In turn, a regional breakdown of the Real Estate activity revealed that demand on Real Estate was allocated across the different regions of Lebanon during that month. For instance, a substantial 3,079 transactions (or 22.99% of total RE transactions) were concentrated in the region of Baabda alone in the month of December 2020. The North, South and Keserwan followed, each grasping the respective shares of 12.05%, 11.91%, 11.40% of the total RE activity in December 2020.
Meanwhile, on a yearly basis, the breakdown of RE activity regionally showed that Baabda also grasped the lion’s share of the total number of RE transactions (equivalent to 19.67%) worth $2.09B by December 2020. The South and the North followed, constituting 13.34% and 12.78% of the total, each worth $1.18B and $832.16M, respectively. Notably, the Metn and Keserwan regions, respectively, comprised 11.92% and 11.52% of the total transactions, whose total values stood at $2.22B and $1.43B, respectively.
Total yearly RE transactions
Source: Cadastre, BLOMINVEST bank