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A GIANT poster announcing the start of construction on a residential centre hangs on the facade of a war-ravaged building in Beirut.As property markets around the world struggle to recover in the wake of the economic crisis, Lebanon's real estate sector is at an all-time high, spurred on by Bahraini holiday home purchasers.
Real estate transactions in Lebanon in the first quarter of 2010 jumped by 41 per cent compared to the same period of 2009, reaching a little more than $2 billion, according to figures released by the Directorate of Real Estate.
'Lebanon's property sector flourished in the first quarter of 2010, benefiting from strong economic growth, continued large remittances from Lebanese working abroad, large inflows of foreign capital, population growth and robust tourism,' said a report carried by Bank Audi's Weekly Monitor.
'The number of property sales transactions went up by 41 per cent in the first quarter of 2010 to reach 22,059 transactions, a record high compared to previous years,' the report said.
It added that a surge of 19 per cent in sales transactions to foreigners showed a continued upward trend, proving the ongoing interest by foreigners, mostly Gulf Arabs, in purchasing properties in Lebanon.
Arabs from the Gulf countries tend to invest in vacation homes in Lebanon.
'Despite the rise in property prices in Lebanon, such prices remains quite competitive relative to comparative property prices in the Arab region at large,' the report said.
Beirut witnessed the highest increase in property prices in Lebanon, attributed to the increasing scarcity of empty plots in the capital and the fact that it is home to high-end property projects.
The value of property sales in Beirut grew by 87 per cent in the first quarter, mainly due to the surge in prices, as the number of property sales in the Lebanese capital registered a rise of 27.7 per cent during that period.
