Over the past five years Lebanon has seen a spectacular boom in property prices, and even in the wake of the global financial crisis, its property market has suffered much less than its Gulf neighbours. 

Rents have been rising during this period - but not as rapidly as prices.  A 50 square metre (sq. m.) Beirut apartment which in December 2004 would have cost US$60,000, would now cost an amazing US$400,000, according to our research.

Prices of larger apartments have risen somewhat less.   But all the same, the property price rises have been spectacular.

Beirut is now less attractive for property investment. Gross rental yields have fallen from over 11%, five years ago, to under 4% now. Yields on larger apartments are unattractive, at under 3%. 

Beirut is a charming city.  But it is not Monaco, not an island of stability.  Due to Lebanon’s bad neighbours to the south, among other reasons, it suffers instability.  

Consequently, purely from an investment perspective, it seems to us overpriced.