International investments do not recognize the geographical boundaries, especially in the real estate sector. Therefore, thinking about expanding the base of investment and allocating it to different geographical areas is the right thing that you do.
In this article, we provide you with an important comparison between the real estate in Turkey and real estate in Lebanon as they are considered an amazing tourist attraction places and investment destinations in the Middle East.
A general overview of the real estate in Lebanon
In the heart of the Middle East, Lebanon stands out as a unique tourist destination for many Arabs and foreigners, and since the beginning of the current decade, the real estate in Lebanon has witnessed a great leap and a large increase. The real estate prices have witnessed an unusual increase. Real estate sector now accounts for 25% – 30% of the total value of the Lebanese economy.
But the turbulent conditions that the Arabic region has suffered from 2011, have imposed itself and created a big gap between supply and demand which put the real estate market in Lebanon in a bind, especially when comparing the purchasing power for the real estates with the real estate evaluated prices. We can see that there is no equivalent correlation between the two values which impose a real threat to this sector and support strong expectations that it will be an overheating bubble which will soon burst in a moment.
The Economist revealed – in one of its reports – a sharp decline in the Lebanese real estate market. Despite the fact that there is a large number of construction projects in the Lebanese capital Beirut, where the flat price in some cases exceeded 1 million dollars. Saying that the number of building permits in Beirut decreased by 8% in the first half of 2018 compared to the previous year, while the real estate deals also decreased by 17% during the first quarter of 2018 compared to the same period last year.
A general overview of the real estate in Turkey
Turkey’s real estate market is a promising and ambitious market with great interactivity, especially when it comes to the flexible government laws and regulations that facilitated the foreign ownership of real estates in Turkey, where those laws and regulations shifted the real estate investment to new levels. After only ten months of activating The law abolishing the principle of reciprocity and allowing the citizens of a number of countries around the world to own properties in Turkey, foreigners could purchase about 21691 real estates, Arabs were in the top of the foreign investors list by about 2697 properties, equivalent to 10% of the total investment value for that period.
In addition to that, the real estate in Turkey has a promising future and its current market is unique due to the investment diversity and economic strength of the Turkish state, which is, in turn, related to the political and economic stability of the Turkish state. The number of houses that have been sold to foreigners in 2017 was about 22234, which is an annual increase of 22.22%.
The Turkish government’s efforts continue in supporting investments in Turkey through a package of measures and offers, including a number of tax incentives as well as reductions in investment ratios that entitle the investor to obtain the Turkish citizenship.
After we had this quick overview of the real estate market in both Turkey and Lebanon, let us go deeper to see what is characterizing the real estate in both countries:
Views of houses in Lebanon
Lebanon has a unique view that makes its houses one of the most important tourism destinations in the Middle East. The Mediterranean coast, which Lebanon border and overlooks in the west with 225 km, and the picturesque mountain environment it has, both gave Lebanon a unique feature of diversity and richness. Coastal cities are important and suitable for housing or real estate investment such as Beirut, the capital, Saida, Tire, and others.
Views of houses in Turkey
Turkey has also a climate relatively close to Lebanon with some differences in some areas; the two countries share the fact that they border and overlook the Mediterranean coast. But as for the geographical differences for the two countries, it is large. Turkey with many unique geographical characteristics and tourism places is much better than any other destination place in the Middle East. Its location connects Asia and Europe, the vastness of its large area and its border view to the Black Sea coast from the north and the Mediterranean coast from the west and south makes Turkey rich with the beautiful natural areas and amazing tourism places which increase the demand of foreign investment more than other destination.
Real estate prices in Lebanon
Beirut seaside has the most expensive real estates in Lebanon, for a flat, the price of 1 meter square is around (10,000) USD, while when we’re slightly moving to the middle of the capital we will find that the prices are lower; 1 meter square is around (6,000) USD such as in Verdun, and it is around (4) to (5) thousand dollars in the big sea resorts in a places such as Ibrahim river, Jubail.
|Area||The average price of 1 square meter|
Real estate prices in Turkey
The economy of Turkey has witnessed a great leap regarding the real estates and properties ownership, especially after the government allowed citizens of 182 countries to own their land and property easily, as the prices of apartments in Turkey are at a reasonable average comparing to other global cities. The average price of a flat in Istanbul is about 100 thousand dollars more or less according to the region, total area, and other factors, while the price of a flat in a coastal city such as Trabzon is about 50 thousand dollars more or less also as per total area and residential area (Location).
|Area||The average price of 1-meter square|
The laws and regulations of the two countries for foreigners to own real estates
Now we come across the most important point, which is a milestone in the real estate of Turkey at the expense of the real estate of Lebanon, Turkey has made great strides in terms of real estates foreign ownership by making it available since 2012 without conditions; while Lebanon took a step similar to that step only in 2018 Through legislation passed by the Lebanese Parliament as an incentive to raise and increase the investment rates in the real estate in Lebanon; The legislation states that “every foreigner who owns a housing unit starting from 500 thousand dollars in Beirut and 330 thousand dollars outside Beirut will have the right of permanent residence for him/her, his/her wife and children minors”.
However, the Lebanese law still stipulates that a license must be obtained from the Council of Ministers for a foreigner who wants to purchase something in kind as a property or other in Lebanese territory. On the other side, in Turkey, Turkish citizenship can be granted by purchasing a property for less than 250,000 dollars, which means more openness and more facilities regarding the real estates and its market in Turkey.