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Residential Real Estate Leases - Lebanon

Lebanon

Lebanon's Residential Real Estate Leases market market is forecasted to witness a significant rise in revenue, with projections indicating that it will reach US$1.61bn by the year 2024.
Apartment Leases, in particular, hold a dominant position in this segment, with a projected market volume of US$0.92bn by 2024.
Furthermore, this market is expected to demonstrate a steady annual growth rate (CAGR 2024-2029) of 2.37%.
As a result, the market volume is estimated to reach US$1.81bn by the year 2029.
Lebanon's residential real estate lease market is experiencing a surge in demand due to the country's growing population and limited housing supply.

Key regions: Japan, China, Australia, Germany, United States

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Analyst Opinion

The Residential Real Estate Leases market in Lebanon has been experiencing significant growth in recent years.

Customer preferences: Lebanese customers have shown a strong preference for residential real estate leases due to several factors. Firstly, leasing provides flexibility and allows individuals to live in desirable locations without the long-term commitment of purchasing a property. Additionally, leasing is often more affordable than buying a home, particularly in a market where property prices are high. Furthermore, leasing allows individuals to avoid the financial burden of property maintenance and repairs.

Trends in the market: One key trend in the Lebanese Residential Real Estate Leases market is the increasing demand for furnished apartments. This trend can be attributed to the growing number of expatriates and international students in the country, who often prefer the convenience of ready-to-move-in properties. Landlords are capitalizing on this trend by offering fully furnished apartments with modern amenities and stylish interiors. Another trend in the market is the rise of short-term leases. With the growth of the sharing economy and platforms like Airbnb, many property owners are opting to lease their homes on a short-term basis to tourists and travelers. This trend has been particularly prominent in popular tourist destinations like Beirut and Byblos, where there is a high demand for short-term accommodation.

Local special circumstances: Lebanon's unique geographic location and rich cultural heritage make it an attractive destination for tourists and expatriates. The country's Mediterranean coastline, vibrant nightlife, and historical sites draw visitors from around the world. This influx of tourists and expatriates has created a strong demand for residential real estate leases, especially in popular areas like Beirut, where the market is particularly competitive.

Underlying macroeconomic factors: Lebanon's real estate market has been influenced by several macroeconomic factors. Firstly, the country has a high population density, which has led to a scarcity of land and an increase in property prices. This has made leasing a more viable option for many individuals who cannot afford to purchase a home. Additionally, Lebanon has experienced political instability and economic challenges in recent years, which have impacted the real estate market. Uncertainty and fluctuations in the economy have led to a decrease in property sales, prompting more individuals to opt for leasing instead. In conclusion, the Residential Real Estate Leases market in Lebanon is growing due to customer preferences for flexibility, affordability, and convenience. The market is witnessing trends such as an increase in demand for furnished apartments and short-term leases. Lebanon's unique geographic location and cultural attractions, coupled with underlying macroeconomic factors, have contributed to the growth of the market.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.