Rapid Growth Of The Real Estate Sector

1686 Words May 4th, 2016 7 Pages
In the past fourteen years Lebanon have witnessed a rapid growth in the real estate sector, which raised the prices of the apartments by 560% from the year 2000 till year 2010 which recorded a peak in the prices in this sector, to stabilize on this prices till recent time. A slight decrease in this prices was registered in year 2006 because of the Israeli aggression , and in the year 2008 due to "7th of may" incidence , but after each incidence causes a decrease in prices a remarkable increase is recorded, not just to the past value but more. This raise of prices , minimizes the opportunity of new families to buy houses to start a new life in. Even if this families decided to rent a house instead of owning them, they would not be able to have one with low rent price, since the Syrian crisis force Syrian people to immigrate towards the Lebanese area. Surely the Syrian people would rent houses instead of buying ones, since they are expecting to go back to their country in the near future. That fact raised also the renting prices. The Lebanese government tried to help its people by offering loans on long term with low interest , also it stimulates the banks to offer citizens such loans by pumping money towards it with low interests also. But upon observing the arbitrage of the Lebanese government , and the percentage of defect, we can conclude clearly that a problem will occur in the near future , either by the stoppage of loans , or by the near collapse of this sector ,…
Open Document