Real estate has made a significant contribution in the economy of Lebanon. In recent global crisis it has shown strong resilience and performance which had triggered economic slowdown. Generally the demand for the real estate has been real and non assumable. There has been an increase in the real estate market demand because of the fact that growing number of Lebanese households, nonresident Lebanese and increasing preference of Arabs for staying in Lebanon.
There are strict regulations in Lebanon regarding real estate and that s why it has been untapped by most of the consumers and developers. The central bank of Lebanon has issued a circular which says that only 60%of the amount of project can be financed and collateral security is also required. The quality of the lodging and the consumers' purchasing power are the major determinants for spending on the real estate.
There are certain factors that are unique to the Lebanese real estate market and are not applicable in the rest of the world. One of such factors is the relaxation in the capital-gain tax. The tax is not applicable, which has led to promising economic performance by the sector. Investors investing in the Lebanese real estate market should have a sound backing of their wealth and their investments should have a lesser debt-equity ratio. The growth in the market has led to the development of numerous opportunities that are grabbed by the powerful corporate houses to reap profits like never before. The lesser interest rate on the housing loans is also a big opportunity for the developers that should be en-cashed with both hands.
However, the sector is risky involving various social and political risks. The risks are historical and have been a consideration for the investors for long. The fluctuation in the income and expenditure of the Lebanese people is also a big threat. Due to excessive expenditures they culminate their purchasing abilities and are not able to buy the houses, they like. In addition to this there is also a strong possibility that the market prices of materials and other construction related costs will surge as they are market driven and thus, can be a huge problem in the future.
Sluggishness or uncertainties which are seen on global arena can also affect real estate business and can be a problem for foreign investors. Real estate is also very prone to any worsening political situation which happens in any country. The political stability of any nation is must as many foreign investors may not find feasible to invest in a country with low political stability.
There are strict regulations in Lebanon regarding real estate and that s why it has been untapped by most of the consumers and developers. The central bank of Lebanon has issued a circular which says that only 60%of the amount of project can be financed and collateral security is also required. The quality of the lodging and the consumers' purchasing power are the major determinants for spending on the real estate.
There are certain factors that are unique to the Lebanese real estate market and are not applicable in the rest of the world. One of such factors is the relaxation in the capital-gain tax. The tax is not applicable, which has led to promising economic performance by the sector. Investors investing in the Lebanese real estate market should have a sound backing of their wealth and their investments should have a lesser debt-equity ratio. The growth in the market has led to the development of numerous opportunities that are grabbed by the powerful corporate houses to reap profits like never before. The lesser interest rate on the housing loans is also a big opportunity for the developers that should be en-cashed with both hands.
However, the sector is risky involving various social and political risks. The risks are historical and have been a consideration for the investors for long. The fluctuation in the income and expenditure of the Lebanese people is also a big threat. Due to excessive expenditures they culminate their purchasing abilities and are not able to buy the houses, they like. In addition to this there is also a strong possibility that the market prices of materials and other construction related costs will surge as they are market driven and thus, can be a huge problem in the future.
Sluggishness or uncertainties which are seen on global arena can also affect real estate business and can be a problem for foreign investors. Real estate is also very prone to any worsening political situation which happens in any country. The political stability of any nation is must as many foreign investors may not find feasible to invest in a country with low political stability.
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Want to find out more about Real Estate Lebanon, then visit David Windsor's site on how to choose the best Real Estate Lebanon for your needs.
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