Total Area: 10,400 km²
GDP (in million USD): 39,149
Lebanon, officially the Lebanese Republic, is a country in the East Mediterranean. It is bordered by Syria to the north and east and Israel to the south.
Despite substantial construction activity since World War II and a boom in construction during the 1960s, which increased the number of housing units to 484,000 in 1970, there was a housing shortage, especially of low-cost residential units, in the early 1970s. The situation was aggravated by the civil war (ending in 1990) and subsequent factional strife in which half of the country's real estate was severely damaged or destroyed. About 750,000 people were displaced. Under the CDR 1983–91 plan, nearly 30% of total expenditures were allocated to build new dwellings and to restore war-damaged houses. According to the last available information for 1980-88, total housing units numbered 820,000 with 3.3 people per dwelling. Housing needs until the year 2000 have been estimated at 400,000 units.
During the year to end-Q1 2012, the average value per property sale rose in Lebanon by 11.8%, based on figures released by Bank Audi's Research Department. When adjusted for inflation, house prices increased by about 6.3% over the same period. In Q1 2012, the average value per property sale was LBP175.25 million (US$116,000), according to Bank Audi.
While house prices are still rising, property demand especially from foreigners is now falling due to domestic political bickering and regional unrest. New housing loans are falling. Construction activity is also down.
Lebanese nationals account for more than 90% of total residential demand. Foreign demand, particularly from Arab nationals, accounts for the remaining 10%. However, foreign demand has been decreasing. In 2011, the number of property sales to foreigners dropped by 20.3%, after rising an average of 10% per year, during the previous five years.