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Wael Abdul Rahman (author)'s picture
5 years 4 months ago
Wael Abdul Rahm... - There are two points that were brought up in more than one comment that I would like to answer: 1. The effect of Lebanese expats. In fact, I agree that Lebanese expats account for some of the demand, and have largely contributed to the increase in real estate prices. However, I wanted to focus on the people living in Lebanon as they constitute the majority of demand, and ALL of REAL demand (they are the ones who will actually live in the apartments). 2. The scarcity of land in Beirut is a nice argument but it doesn't answer the real question and surely does not justify the sharp increase in prices. Let me explain: if you have 1 m2 or 1,000,000 m2 of land left, it has no effect if the asked price is above what everyone who wants to buy can pay. You must price your asset in a way that is affordable for the people who want to buy or no one will buy REGARDLESS of how much land is left.