The Republic of Lebanon is located in Western Asia and is known as regional development center due to its geographical location. It is well known for its cultural and religious diversity. It has the most skilled labor force as compared to Europe and other Arab countries. The real estate market of Lebanon is considered different because it showed an investment of US $2 billion when the whole world was going through economic crisis. A lot of commercial real estate projects have been completed in Lebanon and the prices in the Lebanon real estate market are at a hike.

There were rumors about bubble in the commercial and residential real estate market of Lebanon but the Governor of Central Bank of Lebanon Riad Salameh clarified it that there is no bubble in the Lebanon real estate market and the property prices are high due to the increased demand. According to his report the reasons due to which the demand is high in Lebanon real estate market are political stability, low unemployment rate, declined interest rates, improved economic condition and increase in population. The Lebanon commercial real estate is one of the attractive spots for the investors all around the world because it possesses industrial and agricultural land.

The speculation of bubble in the real estate market of Lebanon was due to the fact that all other economies of the world were suffering from financial down turn and low property prices and Lebanon was showing a continuous improvement. Bubble in the commercial and residential real estate of China also made the real estate experts of Lebanon to expect the same case with the Lebanon real estate sector. But the recent comments of the governor of central bank clarified it and brought forward the true reason why the sector was growing rapidly. According to the recent reports Lebanon is the next emerging spot for commercial real estate investors of Gulf countries. It is now being estimating that the real estate sector of Lebanon will continue to grow till 2013 with the same pace until the demand and supply become leveled to each other.