Who can afford to own an apartment in Lebanon?

Buying property or a residential apartment in Lebanon is no longer an easy undertaking. The real estate market has yet to recover fully from the financial and economic crisis that swept the country, amid limited supply and demand despite a growing need for homeownership. The situation has become more complicated as purchases increasingly rely on cash payments, with no effective housing loan system in place apart from a few limited bank financing initiatives. Meanwhile, apartment prices continue to rise, driven by inflation and higher construction costs. How much do residential apartments cost? Have prices returned to their 2019 levels, and do they reflect the actual value of properties being bought and sold?

Caught between the need to own a home, limited incomes and rising residential property prices, many young people are abandoning the idea of buying a house because they do not meet the requirements for the limited loans offered by some banks, particularly commercial banks that charge very high interest rates.

Sami is one of these young people. He hopes to buy a new apartment, but high interest rates and rising property prices, particularly for newly built apartments, have led him to reconsider the idea, as he explained to Nidaa Al Watan. Instead, he is considering renting an apartment if necessary and putting his plans for marriage on hold, at least for the time being.

A market struggling to recover

Discussing the state of the sector and the pace of property transactions, real estate consultant Ahmad Al-Khatib told Nidaa Al Watan that “apartments in suitable locations, with good specifications and realistic prices, have a better chance of attracting serious buyers. Properties priced excessively high, however, face marketing difficulties, which prolongs their time on the market and delays transactions.”

He stressed the importance of distinguishing between the price a property owner is asking for and its actual market value, explaining that the market has become more sensitive to pricing. Relying on historical prices or personal expectations is no longer sufficient.

“The absence of housing finance is one of the main obstacles to restoring normal activity in the sector,” he added. “Whereas bank loans once allowed young people and newly established families to purchase homes over time, buying now depends largely on available cash.”

This has narrowed the pool of potential buyers, concentrating a significant portion of real estate activity among individuals with ready savings or those benefiting from income and financial transfers from abroad.

Regarding apartment prices, Al-Khatib noted that the real estate market is showing gradual signs of recovery, particularly in Beirut and its suburbs. However, this improvement varies considerably from one area to another and does not provide a complete picture of buying and selling activity.

Several factors explain this situation.

In some areas, prices have remained relatively stable, with modest increases of between 5% and 10% compared with previous years. Nevertheless, prices remain slightly below their pre-2019 crisis levels.

Property prices also vary according to location. In Beirut's suburbs, the price per square meter ranges from approximately $1,300 to $1,800, while prices in Ashrafieh can reach $3,000 per square meter.

Consequently, a 100-square-meter apartment may cost between $130,000 and $300,000, depending on its location and specifications. These estimates do not necessarily reflect the final selling prices.

Demand is currently concentrated on smaller residential units measuring between 80 and 150 square meters, particularly among young families and middle-income earners. However, the lack of sufficient bank financing prevents this existing demand from translating into actual purchases.

As for new residential developments, construction is continuing, but at a limited and selective pace compared with previous years. Developers must purchase land and finance construction themselves, and they are often reluctant to offer installment plans unless they know the buyers well.

Prices per square meter range from $2,000 to $10,000

Apartment prices in Beirut range from $2,000 to $10,000 per square meter, according to Walid Moussa, president of the Syndicate of Real Estate Brokers and Consultants in Lebanon, who spoke to Nidaa Al Watan.

Moussa confirmed that prices have indeed returned to their previous levels, particularly in Beirut and certain other areas. In some locations, they may even have surpassed those levels, despite limited supply and construction activity.

According to Moussa, the increase is attributable to accelerating inflation, which has driven prices back to their previous levels or even higher. This has been particularly evident in areas with strong purchasing power, including Beirut and mountain resort destinations such as Faqra, Faraya, Batroun and Amchit, where prices have risen significantly.

Explaining current market conditions, Moussa noted that supply remains limited because those who wanted to sell their properties largely did so during the crisis, while those who wanted to buy took advantage of the opportunity.

Today, buyers are approaching purchases with considerable caution. They are looking for reasonable prices, but rising costs have created a mismatch between what buyers are willing to pay and what sellers are asking.

Who can still afford to buy?

According to Moussa, current property transactions are largely limited to financially comfortable individuals living in Lebanon who have the means to earn income in dollars, as well as Lebanese expatriates.

Expatriates accounted for a significant share of property purchases in Lebanon before the crisis, but their participation has since declined. Figures indicate that the number of real estate transactions fell by approximately 25% in 2026 compared with 2025, for several reasons.

First, 2026 has been marked by wars and conflict, whereas 2025 was characterized by political optimism following the election of a president, the designation of a prime minister and the formation of a government.

Second, the Lebanese diaspora, particularly in the Gulf region, has been affected by economic difficulties that have reduced incomes and financial returns. This has also led to a decline in remittances to Lebanon, negatively affecting real estate investment.

Against this backdrop, what can be done to stimulate the property market?

Moussa emphasized that any positive financing initiative would benefit the sector, as the market needs housing loans. These include loans provided by the Housing Bank, whose financing initiatives began approximately two years ago.

The Public Corporation for Housing is also expected to begin issuing loans next year, following the allocation of funding in the 2027 state budget. Although the proposed amount has been reduced from $60 million to $24 million, Moussa said that the loans would still be better than nothing.

Some banks have also resumed offering housing loans, albeit at high interest rates.

These initiatives, Moussa explained, “restore hope to the real estate sector,” adding that neither a healthy property market nor a healthy banking sector can function without housing loans.

He expressed hope that conditions would improve, allowing the sector to regain momentum and return to its former position among Lebanon's most active industries.

But what is driving prices higher?

The gap between property prices and purchasing power

“Several factors contribute to the widening gap between the prices of new residential units and the purchasing power of a large segment of the Lebanese population,” Al-Khatib explained.

These include concerns over legal disputes and lengthy court proceedings, the absence of financing and the significant increase in construction costs over the past period.

The limited availability of housing loans is also weighing on the volume of real estate transactions and slowing the sale of listed apartments, despite the existence of genuine demand. Property owners increasingly prefer to hold on to their assets rather than sell them at prices they consider unfavorable.

A genuine recovery in the real estate market should not be measured by rising apartment prices, but by the restoration of people's purchasing power and the availability of housing finance that enables Lebanese families to own homes.

Achieving this would require a sustainable balance between supply and demand, alongside improved security, higher household incomes and increased salaries.