While Lebanon is going through a serious political crisis and the next presidential elections are of a great importance for the country’s future, the real estate market remains particularly dynamic regarding real estate transactions. As usual, good opportunities are always fulfilled during critical and alarmist moments. Lately, we have observed the investors increasing interest in order to acquire parcels in Achrafieh or in Ras Beirut. It is surely a positive sign in a blurred political context.

Concerning prices, the real estate impact in Beirut (except for the Down-Town and the sea front) are recently varying between 300 to 1000 dollars for each m2 of constructible surface. The gaps are proved according to the notoriety of the areas. The tendency is increasing.

Even though hundreds of parcels are available on the market in the area of Beirut Municipality, the real attractive properties are scarce. Now we rapidly move by lands overestimated by their owners – who have no intellectual or scientific competence to estimate their goods, and who are mislead by incompetent and fraudulent intermediates.

On the other hand, there are many parcels that are often badly situated at the bottom of an impasse, and not much exploitable along the main roads that still didn’t experience the real estate boom. Those specificities get on to investors again. Finally, only a minority of shares with strong potential and exact evaluation remains. Those shares are rapidly pursued by promoters and investors who follow different strategies:

According to the last transactions of Jamil Ibrahim Group in Sursok and Jal el-Bahr, the promoters’ demand of parcels in order to launch new residential projects is strong. Two categories are distinguished: The first one has to do with the heavy weight of the market with solid financial capacities that multiply residential projects. The person can buy many properties in a very short period of time in order to sell them by lots or to keep them waiting.

The second category includes more methodical promoters. They work step by step. Generally, they wait for the end of the sales in order to acquire a new site. If this strategy doesn’t allow them to take advantage of the best prices, it still has the merit to be logic. Promoters lean on the reputation of their previous buildings that allows them to have a list of possible clients for future projects.

Many acquisitions have been observed by investors who don’t have a real experience in the residential market. Their logic is simple. Instead of investing in the industry sector, the commerce, or the agriculture of the country, these businessmen prefer to place their profits in real estate. Many of them are Lebanese people working abroad, in Africa or in the Gulf states. Those persons often buy without really knowing the potential of the parcel. They function according to profit probabilities in case of a next resale.