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3. Rising Rentals: Effects of the Israel-Hezbollah Conflict

The dramatic increase in rental prices in some Lebanese regions is a notable consequence of the recent escalation in the conflict between Israel and Hezbollah, impacting areas far beyond the war zones. The once-stable real estate market in Lebanon is now in turmoil, with rentals soaring due to persistent instability and economic concerns.

Over a million Lebanese citizens have been forced to leave their homes due to the escalating Israeli bombardments, seeking refuge in safer regions. This phenomenon has led to a significant surge in real estate prices in areas that remain unaffected by the conflict between Hezbollah and Israel. Several factors have contributed to this increase, particularly the rising demand. Additionally, the ongoing tensions may drive investors to speculate on properties in regions perceived as stable.

A prominent real estate agent in Lebanon who wished to remain anonymous, informed This is Beirut that the rental market is thriving. As a result, short- and medium-term rental prices (for 3 to 6 months) have risen by 20 to 30%, depending on rental duration, location, and the profiles of displaced individuals. Regions such as Faraya, Faqra, and Batroun are increasingly popular among wealthier clients, while Fanar and the Metn attract displaced individuals with more modest means. Prices in these vacation spots have surged by 20 to 30% compared to the summer.

Property owners are also benefiting, including those who have previously struggled to find tenants. They are now able to lease their properties at high prices in areas as far-flung as Ehden in northern Lebanon. However, the real estate agent noted that demand remains concentrated in the Metn and Keserwan regions, and since most inquiries are for short-term rentals, prices are significantly higher than for long-term leases.

In this context, some landlords are capitalizing on the situation by claiming exorbitant prices, tripling or even quadrupling rates in certain cases, especially for furnished accommodations where displaced individuals can move in immediately.

However, not all property owners are willing to rent out their properties, as they fear long-term occupancy without any guarantee of regular payments, particularly with winter approaching and the country facing enduring conflict.

Hotels : Occupancy Rate Approximately 40%

For his part, the President of the Federation of Tourism and Hotel Owners’ Unions, Pierre Achkar, informs This is Beirut that “hotel occupancy rates have risen between 30% and 40%, depending on the region, compared to just 10% during the summer season. The most sought-after areas include Metn, Keserwan, and Jbeil—regions regarded as safe.” He adds that the clientele includes not only displaced individuals from areas directly impacted by bombardments but also residents of the capital and its surroundings seeking refuge from the sounds of explosions and airstrikes.

However, Achkar emphasizes that most hotels have offered discounts of around 50% on room rates, with many guests staying only briefly, “just long enough to find housing or secure a plane ticket.” Regarding the year-end holidays, he states that he has “no clear outlook, given the current situation, and that it is too early to think about Christmas plans.”

As for guesthouses, many have temporarily closed their doors due to concerns about accommodating displaced individuals.