Despite war, sale prices not dropping, Ramco says

The renewed war between Hezbollah and Israel in Lebanon has weakened the real estate market in Beirut, just as it did during the last open war between these two belligerents in October and November 2024.

Demand for apartment purchases has drastically declined and investor interest remains hesitant. The market is plunged into a period of uncertainty. It is on standby. Overall, buyers and sellers remain in suspense, waiting to see how the war will evolve, which as of Friday has entered a 10-day truce phase.

Worried, people cannot imagine making a property purchase in the current climate. Wealthy clients looking for large apartments in the upscale areas of Furn al-Hayek, downtown, or Ras Beirut have withdrawn. With substantial budgets, they are in no hurry and have chosen to stay on the sidelines for the medium term. Aside from the absent elite, interest is timid.

But the market is not completely at a standstill. There are still some risk-takers willing to make deals. In recent days, several transactions have been observed in Beirut. Two examples in Achrafieh caught our attention:

• A three-bedroom apartment, located in an older, dimly lit building, has just sold for $1,500 per square meter. The buyer paid a fair price for a property that required significant renovation work.
• The second sale concerns a two-bedroom apartment with a terrace in a 1940s building with high ceilings. The transaction was completed at $3,000 per square meter. The apartment needed minor repairs and had no parking space.

In both cases, the sales were not undervalued. The buyers paid the price that was listed before March 2026. They did not obtain any significant discounts. At this stage, the war has not yet affected values, which remain stable. The new owners acted on impulse. They did not wait for the end of hostilities to make a decision. They wanted to be responsive, aware that the market does not offer much availability.

'Buying at the sound of cannons'

Despite the anxiety-inducing climate, there are still people inquiring and contacting real estate agencies while waiting for opportunities. They compare prices and visit certain properties. Land investors and developers are also still present. They hope to find land at fair values after the spike in prices seen in 2025.

Secretly, they hope that prices have dropped and that the saying "buying at the sound of cannons" will work in their favor. But so far, this is not the case. Many are disappointed and have a mistaken view of the market. The lack of supply — where some owners prefer to rent rather than sell — does not allow, in the short term, for a correction in apartment prices.

As a result, owners are sticking to their positions. The most optimistic have even withdrawn their properties from the market in hopes of better days ahead. After seven weeks of war, most are not panicking and are maintaining their pre-war prices. No flexibility has been observed. This was already the case from October to November 2024. During that period, apartment values did not move.

Ultimately, the duration of the current war will be decisive. The evolution of the temporary 15-day cease-fire reached on April 8 by the United States and Iran in the regional war is keeping fears alive. Any deterioration or prolonged stalemate will inevitably push some owners, if pressured, to accept aggressive counter-offers.