Commercial Real Estate - Lebanon

Lebanon

The Commercial Real Estate market market in Lebanon is projected to reach a value of US$0.46tn by 2024.
This market segment is expected to exhibit an annual growth rate (CAGR 2024-2029) of 0.85%, leading to a market volume of US$0.48tn by 2029.
In terms of global comparison, the United States is anticipated to generate the highest value in the Real Estate sector, with an estimated value of US$25,280.0bn in 2024.
Despite the ongoing economic challenges and political instability in Lebanon, the commercial real estate market continues to show resilience with a growing demand for office spaces in Beirut.

Key regions: Europe, France, Japan, Brazil, Asia

Market

Region

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Analyst Opinion

The Commercial Real Estate market in Lebanon has been experiencing significant growth and development in recent years.

Customer preferences: Customers in the Commercial Real Estate market in Lebanon are increasingly seeking modern and well-equipped office spaces that can accommodate their growing business needs. They are also looking for commercial properties in prime locations that offer convenience and accessibility to their clients and employees. Additionally, there is a growing demand for mixed-use developments that combine office spaces with retail and leisure facilities, providing a one-stop destination for both work and leisure.

Trends in the market: One of the key trends in the Commercial Real Estate market in Lebanon is the rise of coworking spaces. With the increasing number of startups and freelancers, there is a growing demand for flexible and cost-effective office solutions. Coworking spaces provide a collaborative and dynamic work environment, attracting a diverse range of professionals. This trend is expected to continue as more businesses recognize the benefits of coworking spaces in terms of cost savings and networking opportunities. Another trend in the market is the development of sustainable and energy-efficient buildings. With growing environmental concerns and the need to reduce energy consumption, developers are incorporating green building practices into their projects. This includes the use of renewable energy sources, efficient insulation, and water-saving measures. Sustainable buildings not only contribute to a healthier environment but also offer long-term cost savings for tenants.

Local special circumstances: Lebanon's strategic location in the Middle East makes it an attractive destination for businesses looking to establish a presence in the region. The country has a strong entrepreneurial spirit and a vibrant business community, which further fuels the demand for commercial real estate. Additionally, Lebanon has a well-developed banking sector, providing easy access to financing for real estate projects.

Underlying macroeconomic factors: The Commercial Real Estate market in Lebanon is influenced by various macroeconomic factors. The stability of the political and economic environment plays a crucial role in attracting foreign investments and driving growth in the market. Furthermore, government policies and regulations related to real estate development and investment have a significant impact on the market dynamics. Economic indicators such as GDP growth, inflation rates, and interest rates also affect the demand and supply of commercial properties. In conclusion, the Commercial Real Estate market in Lebanon is experiencing growth and development due to customer preferences for modern office spaces, prime locations, and mixed-use developments. The rise of coworking spaces and sustainable buildings are also shaping the market trends. Lebanon's strategic location, vibrant business community, and easy access to financing contribute to the market's attractiveness. The stability of the political and economic environment, along with government policies and economic indicators, are key underlying factors that influence the market dynamics.

Methodology

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.