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3. Lebanon’s Real Estate: The Cautious Return of Arab Investors

Since the end of the war, Lebanon’s real estate market has seen a renewed surge in activity, marked by a partial rebound in property transactions, particularly those involving foreign buyers. Gulf, Jordanian, Egyptian and Syrian nationals are once again turning to Lebanese real estate, attracted by competitive prices, the pursuit of stable investments and the country’s geographical and cultural proximity.

During the first nine months of 2024, a total of 26,430 property transactions were recorded — an increase of 118% compared to 2023, according to well-informed sources. This surge is largely attributed to the resumption of land registry services after a prolonged administrative paralysis. The total value of sales reached nearly $1.85 billion. However, foreign buyers accounted for only about 2.2% of all purchasers, with Syrians leading the way, followed by Saudis, Americans, Dominicans and Turks.

Arab Investment: Cautious Return, Discreet Moves

Despite the positive momentum, enthusiasm remains cautious. As Karl Kanaan, commercial director of S Gestion and a real estate expert, explains, “There aren’t many requests from Arabs in general. It’s still early after the lifting of restrictions. On the other hand, there is investment from Lebanese living in Arab countries. Arabs who had bought properties a long time ago in areas like Bhamdoun and Sofar and left them neglected are starting to renovate them, likely for summer use.”

This partial return seems to be driven more by personal use than by large-scale new acquisitions.

A Cumbersome Registration Procedure

The land registration process remains a major hurdle for foreign investors. Its length and complexity deter some buyers, especially as legal restrictions continue to affect certain nationalities, notably Syrians and Palestinians. While there have been legislative proposals to grant permanent residency to foreign buyers, these measures have yet to materialize.

Despite undeniable opportunities, several high-profile investors, including Khalaf Ahmad Al Habtoor, have withdrawn their projects in Lebanon, citing political instability, the absence of meaningful structural reforms and the persistent influence of armed militias.

The Motivations Behind Arab Investment

Investors from the Gulf countries, Jordan, Egypt and Syria have been attracted by several key factors, foremost among them competitive prices. Real estate prices have fallen sharply amid the economic crisis, presenting opportunities to buy at appealing rates. Moreover, facing economic uncertainty in their home countries, these investors see Lebanese property as a way to diversify and safeguard their assets. Finally, geographic proximity and cultural ties have facilitated investment, especially for Syrian and Jordanian nationals.

An Unevenly Attractive Landscape

According to multiple sources, the most sought-after areas for foreign buyers remain the North (27.8% of transactions), Beirut (25.3%) and the South (23.7%). The Beqaa and Baalbeck-Hermel also attract a notable share (20.7%), while Nabatiyeh accounts for only 2.5% of sales.

Lebanon’s real estate market appears to be at a crossroads: while it is regaining some appeal among investors, particularly from the diaspora and Arab countries, political instability and bureaucratic hurdles continue to hinder a full rebound. Restoring investor confidence will require deep reforms, stronger legal guarantees and a clear economic strategy aimed at long-term stability.