Short-term woes likely to persist…
The most likely scenario in the near term is the continuation of the current market status quo. The formation of a government might ameliorate sentiment but not trigger a massive unwinding of the sluggishness in the market. For that to occur, the investment climate would have to ameliorate tangibly in a way that encourages non-residents (especially Lebanese expatriates) to make a comeback on the local scene and residents to resume their buys (notably by providing them with more affordable financing options). Otherwise, price discounts are likely to continue being obtained, but not necessarily increase. If the sluggishness persists, more and more developers might agree to grant discounts and the rebate range might become more of a norm or might be gradually generalized. But for developers to increase the discounts obtained today might be difficult, except perhaps in some isolated cases, as those rebates are eating up their profit margins mostly.

…but Lebanese realty remains an enticing long-term bet
The structural factors behind price resilience on the overall rest on an ongoing demand, with continuous population growth in need of lodging and the narrow size of a country with limited land plots for sale. Thus, apartment prices naturally see upward price pressures and realty remains in demand, even if this demand is curbed in difficult times. Real estate investment is a safe long-term bet, even if nowadays the market does not provide short-term upside price potential. Buy-and-hold investors will undoubtedly benefit from a likely upside, even if the resumption of an upside is being delayed by the currently prevailing conditions, and can take advantage of a market very much in their favor to buy today on dips and hold on to their investment until the tide turns in their favor in the long run. Read Full Report:

Source: Bank Audi