The World Bank's Summer 2026 Lebanon Economic Monitor projects a 6.4% contraction for the year after renewed conflict interrupted the stabilization recorded in 2025. The report links the reversal to displacement, disrupted supply chains, weaker tourism and consumption, and additional destruction of housing and infrastructure.
For real estate, the report is a reminder that market conditions cannot be separated from the wider recovery. New damage compounds the losses left by the 2024 conflict, while displaced households face immediate housing needs and owners, developers, and municipalities confront a larger repair and reconstruction burden.
This is a macroeconomic assessment rather than a property-price index, but its implications are direct: transaction confidence, construction activity, rental pressure, and the restoration of damaged housing will depend on security, reform progress, and access to reconstruction finance.
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Baitiq summary and context. Source: World Bank. Read the original publication for its full methodology and findings.
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