Luxury Real Estate Market in Lebanon
Prices are going up in the real estate market depending on the region. However, speculation is scarce since there is a limited availability of land. The market is an end‐user one. The chance to have a bubble is null. The market, the way I see it in five years time will be saturated but healthy.
How would you describe the current climate in Lebanon’s real estate and property sector?
The real estate market in Lebanon is in equilibrium. We are a small country, with a small size population, proximate to rich countries that have petroleum. Our multi‐ethnic community and natural wealth attract people from all over the world. Investment is secured by a set of well established regulations (monetary, banking, etc.) and a big demand fueled by Lebanese locals and expatriates, as well as some foreigners. Thus, with this stable economical and political environment, the potential for future growth is certain.
Is there a lot of speculation going on in the market?
Prices are going up in the real estate market depending on the region. However, speculation is scarce since there is a limited availability of land. The market is an end‐user one. The chance to have a bubble is null. The market, the way I see it in five years time will be saturated but healthy.
At Care Group you are currently managing a portfolio of 2 billion dollars and you have many projects. Can you give us a brief overview of Care Group; your development, your agenda for 2010‐11?
“CARE Group is the leading company in the real estate
field in Lebanon, in terms of project development,
investment portfolio, and sales volume achieved.”
“I can assure you that 50% of those projects are
sold‐out, prior to launching.”
Life is challenging and we want to grow. Through our extensive experience and successful track record, investors learn to trust our company and judgment. Growing is through successful business expansion. We planned to open several offices in Qatar, Syria, KSA, Dubai and Abu Dhabi but were faced by administrative barriers and economic crisis. Our plan is to expand our know‐how and products to neighboring countries. Yet, those markets should be more secured, better regulated, enabling healthy flow of investments. Lebanon is like a laboratory; if you succeed in any business here you can definitely succeed anywhere in the world. It is a very tough market.
How much return on investment can you offer to your clients?
Before 2008, the prices of land in town were cheaper. The return on investment was exceeding 35% per year. Today, the prices are considerably increasing due to several positive factors. Land available for sale in town is becoming rare, paired with an increase of demand and a huge excess of cash flow. But still, we can always assure more than 25% yearly, which is also a very high percentage, depending on the product and the area where the development is being made.
What would be your final message to our international audience, and readers?
Our business model is a success story. We hope to spread it to other countries, assuming that people will come to us if they want to securely invest. We are ready to assist and offer them our expertise so they can be safe on different levels of investment.