BELIEF, Economic Update, Growth, Economic Growth, Security Situation

Lebanon’s Housing Crisis: The Strain of Displacement and the Risks of Unpaid Occupancy

10:29 | 31 October 2024LIMS output
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Housing

As Lebanon grapples with the consequences of war and the influx of internally displaced people (IDP), the country’s rental market has been subject to sharp scrutiny. The demand for housing has soared as displaced populations flood into areas already struggling with economic instability. With so many in need of shelter, rental prices have escalated, prompting critical questions: Are IDPs being unfairly exploited by inflated rents, and should they be occupying private property if they can’t afford to pay?

LIMS has noted that given the lack of available rental units, many property owners have found it necessary to invest in fixing up their properties to make them habitable. This investment in repairs is then reflected in the higher rents charged to tenants. LIMS also noted that most properties in Lebanon are designed with the intention of being sold rather than rented. When a property is rented out, it is considered “used,” and its value depreciates in the eyes of potential buyers. As a result, property owners are reluctant to rent out their properties without ensuring they can recover any potential loss in value. Beyond the financial considerations, many property owners fear that renting to certain individuals could expose their properties to security risks. Those properties might become targets themselves, through raids, if the tenant is considered target for military or political reasons.

With rents skyrocketing and many IDPs unable to afford housing, an increasing number of individuals have resorted to occupying vacant private properties. LIMS warned that any occupation of private property could have significant long-term consequences. If IDPs are allowed to occupy private properties without paying rent, it could discourage property owners from renting out their spaces altogether. This could further reduce the already limited rental spaces, worsening the housing crisis. Additionally, such actions could contribute to a breakdown in the rule of law, potentially leading to greater instability in an already fragile environment.

  • The Lebanese Rental Market Is Suffering From Rising Prices, October 16, 2024: Al Jadeed, Video Interview AR
  • Lebanon Faces The Largest Displacement Crisis In Its History, October 13, 2024: CNBC Arabia, Video Interview AR
  • The Halt of Displaced People’s Work Costs Lebanon Approximately One Billion Dollars, October 4, 2024: Al Qahera News, Video Interview AR
  • Lebanon: Displaced People Choose Streets And Parks In The Face Of High Rents, October 3, 2024: Al Hurra, Article AR