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LEBANON WAR

Displaced: The surge in rent prices in Lebanon continues

The prices of furnished apartments have sometimes quadrupled in certain areas, while those of unfurnished ones have also seen a significant increase, though less dramatic.

Displaced: The surge in rent prices in Lebanon continues

An elderly woman walks among the rubble of buildings destroyed by Israeli strikes, on Oct. 1, 2024, in the southern suburbs of Beirut. (Photo: Mohammad Yassine)

After having already been forced to flee their home in Naqoura to take refuge in Sour six months ago, Hady* and his family were again compelled this week to join the over one million of their compatriots displaced by the intensifying Israeli bombings.

"We wanted to rent a place in Saida, but the rents were between $1,000 and $2,000 a month, even $3,000 in some cases, not counting the cost of living. I can't afford it," explained the government employee, whose monthly salary is about LL 22 million ($250). "Fortunately, we were able to stay again with relatives, this time in Aley (Chouf)," he said.

But not everyone is that lucky. While the exponential rise in the number of displaced people over the past two weeks has largely sparked a wave of solidarity among the population — often filling in for the absence of state support — it has also continued to fuel the surge in rental prices in some host villages, a trend that has been observed for several months now.

"It's total chaos, both in terms of prices and the practices of some landlords," stated Walid Moussa, president of the Lebanese Real Estate Syndicate (REAL), citing cases where rents have doubled, tripled, or even quadrupled.

Abusive practices

"The highest demand is for furnished apartments where people can settle quickly," noted Hadi Ghrawi, CEO of Royal Reality Real Estate, an agency renting properties in and around Beirut.

"Such properties usually accounted for about 50% of the supply, but this stock is almost depleted now," he continued. This partly explains the sharp increase in the price of some properties over others.

L'Orient-Le Jour's correspondent in southern Lebanon reported, for example, a furnished three-bedroom apartment in Saida now costs $1,500 per month, compared to $500 a year ago. Similarly, in Kfarkatra (Chouf), the average price of a one-bedroom chalet has tripled over the past year, reaching $600 per month.

In contrast, while the rents for unfurnished apartments have also increased in recent weeks, the rise has been much more moderate, according to interviewed professionals. For instance, a two-bedroom unfurnished apartment in Saida is currently listed for $500 per month, compared to $300 a year ago, while an empty basement in a Chouf village is on the market for about $500 per month, up from nearly $200.

The price rise is less severe because demand is lower, as displaced persons "have to spend even more money to make the place livable," explained Moussa. Sometimes, there are also unpleasant surprises with these emergency expenses.

Read also:

From refugees to displaced: Palestinians in Lebanon from one war to another

L'Orient-Le Jour's correspondent in the Bekaa observed similar trends in that region: "In addition to the skyrocketing rents — exceeding, in some cases, 2,000 dollars per month, which is unprecedented in the area — the prices of foam mattresses have also followed this trend, sometimes selling for around $20 each in certain parts of the Bekaa (compared to $7 or $8 previously), and they are no longer available in some areas."

In Saida, however, the prices of these mattresses have remained unchanged, as have the prices of food and raw materials (see side box).

Discrimination

Besides the surge in rents in an effectively deregulated market, some displaced persons are facing certain practices deemed abusive, such as being forced to sign long-term rental contracts. Ghrawi also said that "many landlords are demanding three to six months of rent upfront."

"This can be a way to take advantage of the situation, but sometimes also an attempt to discourage the Shia community from finding shelter in certain areas, out of fear that these individuals might be linked to Hezbollah and targeted in their new homes," he added.

No price increase in supermarkets, according to the union president

The intensification of strikes and the start of the Israeli ground offensive in Lebanon have not yet led to an inflation in the prices of essential foodstuffs, according to the union of supermarket owners.

Its president, Nabil Fahed, assured L'Orient-Le Jour that "there has been no change in prices, and there are still plenty of offers and discounts on products. Consumer protection inspectors [from the Ministry of Economy] regularly monitor prices and can confirm this."

Apart from two days following the expansion of the conflict and the beginning of the shelling of southern Beirut's suburbs on September 27, Nabil Fahed stressed that there has been no significant rush to supermarkets and that goods are well-stocked, urging the public not to panic.

While awaiting the consumer price index (CPI), calculated by the Central Administration of Statistics to verify this situation, several Lebanese interviewed across the country confirmed Nabil Fahed's remarks, also noting that the situation is similar in other essential businesses, such as pharmacies and gas stations.

After having already been forced to flee their home in Naqoura to take refuge in Sour six months ago, Hady* and his family were again compelled this week to join the over one million of their compatriots displaced by the intensifying Israeli bombings."We wanted to rent a place in Saida, but the rents were between $1,000 and $2,000 a month, even $3,000 in some cases, not counting the cost of...