Over the past five years, Lebanon’s real estate sector has faced significant challenges in maintaining its market value. The decline in property values has also affected rental prices. Although the sector is gradually recovering, it has not yet returned to its pre-crisis market value, impacted by the economic, financial, and banking crises, and the collapse of the Lebanese pound’s exchange rate.
As a result, many companies and individuals have had to release their properties to creditor banks at amounts that do not reflect the actual value of their loans, especially those denominated in US dollars. Many properties remain tied to real estate mortgages, particularly large projects.
Recently, the gradual recovery of the real estate market in Lebanon has been evidenced by real estate companies marketing sales offers for apartments and shops within these complexes. However, these properties often come with real estate mortgages held by private banks, some of which are under investigation by the Central Bank of Lebanon through the Oversight Committee for Banking.
For those looking to purchase apartments or commercial stores burdened with real estate guarantees and mortgages, it is crucial to seek the assistance of specialized lawyers. This ensures that buyers’ rights are protected, helping them avoid potential consequences from these indebted companies’ failure to pay their debts, which could result in banks enforcing their mortgages. Without proper legal guidance, buyers risk losing both their investment and their legal claim to the property. Proceed with caution and ensure you have expert legal support.