Lebanon offers lucrative opportunities for investors looking to purchase commercial real estate, particularly in cities such as Beirut, where demand for office space is steadily increasing. If you are an investor looking to reduce rental costs and gain control over your premises, purchasing a commercial office can be a key step in your business development strategy. It is important not only to find the right premises, but also to consider numerous factors such as location, infrastructure, transport accessibility, and the business environment.
Lebanon offers a wide range of commercial properties, from modern offices in business centers to historic buildings that can be converted for commercial use. But how do you choose the best property for investment? In this article, we will take a detailed look at popular areas, price categories, and investment potential that can generate stable income.
Demand for commercial offices
Demand for commercial real estate in Lebanon is constantly growing, and this is due to several factors: economic recovery after the crisis, infrastructure projects, and stable development of the business environment. Buying an office in Lebanon can be a profitable investment for those who want to reduce rental costs and ensure stability for their business.
Offices in Beirut business centers
Beirut is Lebanon’s economic and financial center, home to major business structures and international companies. Offices in central Beirut are always in high demand due to their convenience and prestige. Commercial real estate prices in central Beirut range from $1,500 to $3,000 per square meter. Such premises are suitable for large international companies and organizations that need offices with first-class infrastructure and proximity to major business facilities.
Offices for startups and small businesses
Small and medium-sized businesses, as well as startups, often choose areas with affordable rents or purchase prices for offices, such as Sabra. Here, prices range from $700 to $1,200 per square meter, which is significantly cheaper than in central areas. This is an ideal option for companies looking for space to grow but not ready to spend a lot on rent in the center.
Historic districts: an opportunity for unique businesses
If your company is looking for a unique look for its office, investing in old buildings located in the historic districts of Beirut or Jounieh can be a profitable solution. Such premises are often converted into offices for creative companies, art galleries, or cafes. However, it should be noted that renovating such properties can be more expensive than in new business centers, so it is worth considering the additional costs of restoration.
Fully serviced offices
Fully serviced offices (security, technical support, cleaning, etc.) are in demand among companies that want to focus solely on doing business without spending time on administration. Such premises in Beirut can cost between $2,000 and $5,000 per m², and they are best suited for large international companies or organizations that require constant maintenance and high standards of comfort for their employees.
Offices in new business complexes
Lebanon’s economic recovery and active infrastructure development are opening up new opportunities for investors looking to purchase office space in new business complexes. Beirut, in particular, has a high demand for modern offices with the latest equipment and designer finishes. Prices for such properties can range from $1,000 to $2,500 per square meter. This is an ideal choice for large companies that want to have a prestigious office in the new business league.
Offices with parking access
The availability of parking is an important factor when choosing a commercial office in Lebanon. In many large cities, such as Beirut, parking problems can complicate business processes. Offices with their own parking spaces will always be in demand, especially among companies with a large number of employees or customers who arrive by car.
Market trends
Since 2019, Lebanon has experienced difficult economic times, particularly due to political instability, currency devaluation, and inflation. However, there is now a certain economic recovery, and demand for commercial real estate is growing again. In areas such as Beirut, demand for offices remains high as businesses are once again looking for premises for stable development.
It is predicted that in the next 3-5 years, with the resumption of infrastructure projects and improvement of the political situation, demand for commercial premises in Beirut, Jounieh, and other major cities will grow steadily. Real estate prices are likely to rise by 5-10%, giving investors the opportunity to make significant profits from reselling or renting their properties.
The most popular areas for buying an office
There are several regions in Lebanon that attract a significant number of commercial real estate buyers, each with its own advantages. Beirut is the commercial hub of Lebanon. It is home to major business centers, headquarters of international corporations, financial institutions, and government agencies. Commercial properties in Beirut usually offer first-class service, modern equipment, and a convenient location for doing business, which ensures constant interest from investors.
Jounieh, located north of Beirut, offers great opportunities for small and medium-sized businesses. The city is popular among entrepreneurs looking for more affordable commercial space. Here you can find offices for startups and businesses that need flexible lease terms. The area also attracts businesses specializing in trade, thanks to its convenient location and easy access to key transportation routes.
Sabra is also popular with buyers looking for more budget-friendly options. The area is ideal for companies focused on the local market with limited funding. Sabra is known for its high commercial activity and large number of small and medium-sized businesses that are actively interested in renting or buying office space.
Tripoli, Lebanon’s second largest city, is experiencing rapid growth. There is an increase in demand for commercial real estate here, due to lower land and rental prices compared to Beirut. Tripoli has prospects for infrastructure and business development, making it attractive to investors.
Sidon is a port city in southwestern Lebanon. It is ideal for companies specializing in the export and import of goods. Sidon offers affordable options for purchasing office and warehouse space suitable for commercial organizations.
Lebanon commercial real estate market outlook: is it worth investing in the coming years?
Given the country’s recovery from the economic crisis and positive changes in infrastructure, Lebanon has the potential for growth in the coming years. Demand for offices, especially in areas such as Beirut, Jounieh, Sabra, and Tripoli, will remain high. And although the economic situation may remain unstable due to political factors, long-term investments in commercial real estate in Lebanon can be profitable.
Given the projected growth in demand and economic recovery, investing in commercial real estate in Lebanon could yield investors a return of 10-15% over the next 3-5 years, provided the right location and type of office is chosen.