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Abstract
The purpose of this study is to assess the real estate market in Lebanon. The study was conducted by a group of MBA students at the Lebanese American University. A content analysis of the classified advertisements of the Lebanese Real Estate was conducted. Results identified four major elements that affect the Lebanese Real Estate market: Advertisements (R2=0.795559), Season of the advertisements (R2=0.741338), Location of the advertisement (R2= 0.594345), and Area of the advertisement (R2= 0.099588).The variable, advertisements, was most affected by the other variables. A recursive system test was conducted to show the relationship between advertisements, and the rest of the variables. (P43= 0.628947)
Keywords: real estate market, Lebanon, content analysis
Introduction
The purpose of this research is to report about the real estate market in Lebanon. Lebanon has been experiencing severe political instability for the past couple of years. The instability has reached a dead-end political situation, an economic stagnation, a disastrous touristic season (Ramco Real Estate). It all began with the assassination of late prime minister Rafic Al-Hariri. The instability was followed by a war in July 2006, inter community violence, strikes, and sit-ins. Similarly, a war struck out between the Lebanese army and Fateh Al Islam, a terrorist group in Nahr El Bared took place in the summer of 2007. Such a situation has not only lead tourists to avoid Lebanon, but has also pushed the Lebanese themselves to escape and leave the country in search of safety and better quality of life. Most departing Lebanese have gone to Europe, the U.K. or the oil rich regions of the Middle East. The exodus of the highly skilled Lebanese became a positive aspect when it came to investments or real estate. (Batbiche, H., 2006)
Currently, the real-estate market in Lebanon is a mature sector that is barley affected by the political situation occurring in the country. "The market has seen resumption in real estate sales transactions in Beirut at the same prices negotiated before July war. This indicates that despite the long term effects of the war, confidence investor's in the local real estate has not shaken." said Raja Mokarem of Ramco Real Estate Brokers and Consultant to Lebanese Opportunities, a local investment journal. Some brokers still have confidence in the...