Arabian Business is raising the alarm — investors need to be wary of their investments in Lebanese real estate:
“In Beirut there is a real estate bubble… I think the real estate prices are lofty,” Paolo Moscovici, managing director of JP Morgan private bank in the Middle East, told Arabian Business in an interview published this week. “It is too much too fast,” he said, adding that investors in the Lebanese capital needed to be “cautious”.
And according to Nick MacLean, managing director of global real estate consultancy CB Richard Ellis:
“As a result of the difficulties seen in the GCC there has been an artificial flow of money into Lebanon and therefore prices have been inflated.
“The economy is interesting but perhaps doesn’t justify the quantity of money that has flown into that market place,” he said.
“The issue is not that a bubble will burst in terms of pricing, but that once there is a recovery seen in the GCC quite a lot of that money will flow out again,” he predicted.
Personally, when a three-bedroom apartment that was selling for $65,000 in 2006 is now priced at $225,000, you’ve got to be wondeirng what is really going on.