Tuesday, January 19, 2010

Double-edged sign of growth

For those of you outside the Lebanese market, you might be interested to note that housing prices in Beirut have been increasing dramatically in the last two years. While official data is not at hand, there is anecdotal consensus that prices have increased by an average 50%, with outliers at 100%. This information could mean a lot of things, such as increased popularity of living in Beirut, displaced supply from 2006, market inflation by government-driven housing policies, and influx of foreign investment in the real estate sector. In any case, I am feel very grateful for my own reasonably priced apartment.

(Incidentally, this is yet another illustration that our perceived wealth and fortune come from comparison to our surroundings and not in absolute terms.)

1 comment:

  1. You know what's sad is that I was reading this and even though I completely understand what you're saying, about 50% of the words you use I never hear in every day life here. I felt like I really had to concentrate. I mean there wasn't one swear word or reference to genitalia so it was almost like listening to a real adult talk.