As part of its advocacy efforts towards building a people-centered and sustainable recovery from the Beirut port explosion and its endeavors to promote inclusive and equitable social justice, as well as foster trust between individuals, entities, and the Lebanese government, the Lebanese Center for Policy Studies (LCPS) partnered with Transparency International (TI) and its local chapter, Transparency International Lebanon – No Corruption, to issue “The Reform Monitor.” The topics covered by the monitor are linked to the areas of reform, recovery, and reconstruction (3RF). The monitor falls within the Building Integrity and National Accountability in Lebanon (BINA’) project, which is funded by the European Union. The views expressed in the monitor do not necessarily reflect those of the donor.

WHAT’S THE ISSUE AT HAND?

The recent conflict between Hezbollah and Israel has had a devastating impact on the country, with housing being the most impacted sector, where damage costs were estimated at USD 4.6 billion (67 percent of total war damage), according to the World Bank Rapid Damage and Needs Assessment (2025). The World Bank also estimates that around 162,900 housing units have been impacted by the conflict, with these units constituting approximately 10 percent of Lebanon’s pre-conflict housing stock.

Breaking down this number, around 45,400 housing units were destroyed, 74,300 were partially damaged, and 43,200 suffered light damage due to the war (World Bank RDNA, 2025). Regionally, the Nabatieh governorate was the most affected, with 44 percent of units impacted (approximately USD 2.2 billion). This is followed by the South governorate, with 24 percent of damaged units, Mount Lebanon (21 percent), and Baalbek-Hermel (7 percent) (World Bank RDNA, 2025). The extensive destruction caused demand to skyrocket, driving up rent and making housing inaccessible to vulnerable populations.

It is not the first time that the housing sector has faced such strains and pressures. According to Ehrenberg-Peters & Feve (2024b), even before the onset of the war, Beirut was ranked amongst the least affordable cities globally (327th out of 332), which constitutes a major challenge in urban centers such as Beirut, Tripoli, Saida, and Tyre (Crean, 2023; UN Habitat, 2021).

Housing Policy Landscape

Lebanon lacks a fully developed overarching public policy related to housing. Despite attempts by the United Nations Human Settlement Program (UN Habitat) to develop a guide for mainstreaming housing into Lebanon’s urban policy and additional efforts by civil society to fill in the policy gaps, these attempts were not institutionalized into a formulated housing policy.

The policy landscape is mostly characterized by separate laws to control rents in response to displacement, and later on to liberalize rents in line with supply-demand dynamics or market prices. However, these steps have not contributed to formulating a broader housing policy to regulate the expansion of cities and villages in an inclusive and holistic manner, which would account for urban planning frameworks, affordability measures, and environmental aspects, to name a few aspects (Housing Monitor, 2022).

Although Housing Law No. 58 of 1965 recognizes housing as a human right, which the state has a responsibility in ensuring and protecting, affordable and adequate housing for vulnerable populations remains largely unaddressed (UN Habitat, 2021, Fawaz et al., 2017). Furthermore, municipal authorities are also responsible for shelter provision and securing adequate housing, according to Law No. 118/1977 (Fawaz et. al, 2017).

Several international agreements have been ratified by Lebanon, which mandate public agencies to provide adequate and secure shelter with inclusive access to public services and infrastructure. For example, Lebanon acceded to the International Covenant on Economic, Social, and Cultural Rights (ICESCR) in 1972. Article 11.1 of the International Covenant places the right to housing within a broader right to an adequate standard of living.

According to the General Comment No.4 (1991) by the UN Committee on Economic, Social and Cultural Rights, the right to adequate housing includes elements such as security of tenure, affordability, and the availability of services, materials, facilities, and infrastructure. It also encompasses accessibility, suitable location, habitability, and cultural adequacy.

Furthermore, the Lebanese state is obliged, under the ICESCR, to periodically submit reports on Lebanon’s housing situation, which includes reporting on the progress towards achieving the respect of this right (Housing Monitor, 2022). According to the Housing Monitor (2022), only two reports on the right to housing were submitted in 1993 and 2015.

Residential Rent Laws

Dubbed the “old rent law,” Rent Acts No. 159 and 160 were introduced in July 1992 following the end of the Civil War. This legislation froze all rental agreements signed prior to this date, without accounting for inflation, rental market prices, and Lebanon’s currency depreciation during the civil war years (Marot, 2012). While the law acts as a form of rent control for old leases, it liberalizes rental agreements signed after July 1992 and allows for an adjustment every three years.

The rent act that emerged in 1992 thus created a distinction between old leases and new “freedom of contract” leases. This legislation for old leases also presented the opportunity to transmit the right to occupancy to other family members. Also, it specified that old rental agreements can be made void in two specific cases: on the bases of building demolition or the landlord’s use of the apartment for familial reasons, provided that the tenant is compensated. Since 1996, Rent Act No.160/92 (Old Leases) has been extended more than ten times.

Despite its benefits, first generation systems of rent regulation like rent control (in this form) have been criticized on several grounds. The first pertains to its disruption of the housing market and urban development, as well as the deterioration and disinvestment of the rental stock. Rent control systems such as these are also criticized for not addressing the root problem of supporting low-income households, by transferring the financial responsibility of affordable housing to private landlords rather than the state (UN Habitat, 2021).

The most notable disadvantage of rent control is the deterioration of poorly maintained buildings rented under the old leases due to the depreciation of rent value and revenue (Marot, 2012). The debate about reforming the rent law was re-ignited in 2012 with the collapse of an old-rent apartment building in Fassouh neighborhood (Ashrafieh) due to insufficient maintenance, which resulted in at least 27 deaths.

The termination of rent control was legalized in a new law voted on in Parliament in 2014 and later amended in 2017. According to this amended law, old leases would be phased out over a period of nine years (or twelve in some cases), with rents gradually increasing to reach a “fair lease price.” To help cover the increases in rent, the legislation stipulates that government housing subsidies would be provided to low-income earners.

This law has been criticized for lack of detail about its implementation strategy involving rent readjustment and liberalization, the unfunded compensation fund, and the weakness of compensation schemes for tenants under “old” rental arrangements. Critics note that it has dire implications on tenants, who are at risk of eviction if they are unable to pay market rent. Furthermore, enforcement of this new framework by the state and landlords has been inconsistent in recent years. A UN Habitat (2021) report highlights that the end of rent regulation will contribute to reducing access to affordable housing even further through the reduction of the stock of reasonably priced units.

Related Legislation

The rent law does not affect the urban environment in isolation from other legislative frameworks, which also impact the housing sector. The 1954 zoning law, which assigns the central and peri-central areas with the most significant zoning rights, raises land values and pressures property owners to sell or re-develop. The construction law of 2004 favors developers by introducing a new method for calculating buildable surface area.

As such, landlords who are locked into low-rent agreements and face financial strain may feel pushed to sell their properties (Marot, 2012). Also, the phasing out of old-rent protections feeds into this dynamic by making it easier for evictions to take place and redevelopment to occur. These laws work together when it comes to the alteration and distortion of the urban fabric and heritage.

Housing Loans Schemes

Some policy experts argue that the state has exhibited limited interest in adhering to the constitutional promise regarding citizens’ right to adequate housing (Crean, 2023). The government's initiative has mainly taken place through the public housing loans scheme.

According to the UN Habitat (2021), mortgage lending schemes pre-dated the Civil War, during which they expanded, as it was a period marked by high construction activity. The Housing Bank (1977) and the Caisse Autonome de l’Habitat (1980) were two key public institutions that were created to provide long-term, low-interest loans in LBP. These institutions nearly experienced bankruptcy due to the currency devaluation in the 1980s and early 1990s.

In the early 1990s, homeownership-oriented policies took effect through financial compensation to populations displaced during the Civil War. This was implemented through the state-affiliated Central Fund for the Displaced, which enabled displaced populations to secure a residence in their home region (UN Habitat, 2021). In the post-war era, under Rafic Hariri’s government, housing policy was remodeled to rely more on the private sector and in promoting homeownership through demand-side subsidies.

As such, new loan schemes were introduced by commercial banks, the Public Corporation for Housing (established in 1996) and the Housing Bank, along with a number of ad hoc public funds. These loan schemes had a low interest rate of (3-5%), a 30-year maturity, and 20% down payment, becoming the primary housing policy tool during the late 1990s to the late 2000s. Massive lending was fueled through the Central Bank’s subsidization of mortgages using banks’ compulsory reserves and offering tax incentives. This policy however was stopped in 2018 with the onset of Lebanon’s most severe economic crisis (Housing Monitor, 2022; UN Habitat, 2021).

Gaps and Challenges

One of the main challenges to the development of an inclusive and comprehensive housing policy based on the right to adequate housing is the commodification of the housing sector, known as the financialization of real estate. The financialization of property refers to the transformation of housing into a financial commodity for speculative investment rather than being used as a social good. This is a part of a global phenomenon and constitutes a main barrier to access to adequate housing.

Following the end of the Civil War, policies have facilitated this trend, which is apparent through the presence of an oversupply in empty housing at high unaffordable prices. Furthermore, researchers have highlighted how housing policies favor business elite interests rather than public welfare, given the nexus between real estate investors and politicians (Mouawad & Saghieh, 2019; Crean, 2023).

Despite the existence of housing loans, these policies generally benefit social groups with the ability to put a down payment and can afford relatively high mortgage payments. By focusing on the middle class, the challenges of the working class remain unaddressed, as state-run, affordable housing endeavors are entirely absent. Consequently, even with the rise of home ownership, many Lebanese are resorting to renting in informal residential areas, which has remained outside the scope of public policy (UN Habitat, 2021).

Finally, the absence of a vacancy tax represents a serious shortcoming in Lebanon’s housing policy. The lack of a tax on vacant properties decreases the supply of housing on the market. According to a 2021 UN Habitat report, one third of lots in the city of Beirut can be considered empty or under occupied. As such, experts recommend implementing a vacancy tax to incentivize landlords to make them available, thus expanding housing stock and reducing prices. 

WHY IS THIS IMPORTANT?

A housing policy which falls short of meeting citizens' right to adequate housing has dire implications on individuals and society at large. First, the termination of rent control measures places people under threat of eviction and further reduces access to affordable housing.

In addition, vulnerable populations (including low-income households, refugees, and migrant workers) increasingly access housing in the informal sector, without having ownership titles or official rental agreements, which exposes them to tenure insecurity. This situation results in increasing social and geographic disparities, thereby threatening social cohesion.

The displacement of old-rent tenants itself impacts the social fabric of neighborhoods, as a capital city like Beirut loses its economically and socially diverse population, largely driven by real-estate developers and investors. Additionally, such housing policies, which work in conjunction with the construction and zoning laws, contribute to threatening Lebanon’s built heritage. The absence of an urban policy for housing also contributes to urban sprawl, which is the unplanned expansion of urban areas into the surrounding rural areas, causing social and environmental distress.

In the absence of sound social policies, civil society organizations have stepped in to fill the gap and to address the mounting housing challenges. However, such initiatives by faith-based and civil society organizations cannot compensate for a comprehensive rights-based housing policy. Several organizations have called for a new housing policy environment which places the right to adequate housing at the center of the political agenda. Such an approach must address the root causes of the housing crisis and not merely offer ad-hoc solutions.

References

World Bank. Lebanon - Rapid Damage and Needs Assessment (RDNA) (English). Washington, DC: World Bank Group. http://documents.worldbank.org/curated/en/099030125012526525

Ehrenberg-Peters, N. & Feve, B. 2024. Profit or Protection: The Fallout of Lebanon’s Housing Crisis: Israel’s war has triggered a housing crisis that risks Lebanon’s social stability. BADIL: The Alternative Policy Institute https://thebadil.com/analysis/profit-or-protection-the-fallout-of-lebanons-housing-crisis/

Ehrenberg-Peters, N. & Feve, B. 2024. Lebanon’s Housing Crisis: From Emergency Response to Sustainable Solutions: How Homes for the Displaced Can Lay the Foundation for A More Affordable, Equitable, And Resilient Housing System https://thebadil.com/wp-content/uploads/2024/12/20240108_Housing-IDPs_Policy-Brief-Layout.pdf

UN Habitat. 2021. Guide for Mainstreaming Housing in Lebanon’s National Urban Policy. https://unhabitat.org/guide-for-mainstreaming-housing-in-lebanons-national-urban-policy

Housing Monitor. 2022. The Plight of Housing in Lebanon: Annual Report Submitted to the UN Special Rapporteur on Adequate Housing.  https://publicworksstudio.com/en/the-plight-of-housing-in-lebanon/

Fawaz, M., Salame, D., Serhan, I., Pietrostefani, E., Abdo, N., Feghali, D. 2017. You Can Stay in Beirut: Towards Inclusive Urban Housing Policies. Issam Fares Institute for Public Policy and International Affairs https://www.aub.edu.lb/ifi/Documents/publications/policy_briefs/2017-2018/20180318_you_can_stay_in_beirut.pdf

General Comment No.4. The Right to Adequate Housing (Art. 11 (1) of the Covenant). 1991. https://www.refworld.org/legal/general/cescr/1991/en/53157

Marot, B. 2012. The “Old Rent” Law in Beirut: An Incentive or Disincentive for Gentrification? Les carnets de l’Ifpo.  https://ifpo.hypotheses.org/4376

Youness, D. 2018. Lebanese Civil Society Organizations and the Old Tenancy Agreements. Breaking the Mold. Issam Fares Institute for Public Policy and International Affairs.

https://www.aub.edu.lb/ifi/Documents/Lebanese-civil-society-organizations-and-the-old-tenancy-agreements.pdf

Information International. 2014. Lebanon’s Rent Act : A new drain on the public purse. https://monthlymagazine.com/en/article/962/lebanon%E2%80%99s-rent-act--a-new-drain-on-the-public-purse#

Maghribi, R. 2018. A New Rent Law, A New Urban Dynamic. LAU Magazine and Alumni Bulletin. Volume 20, Issue No.1. https://magazine.lau.edu.lb/20-1/a-new-rent-law-a-new-urban-dynamic.php

Crean, R. 2023. Houses Without Homes:  Beirut’s Affordable Housing Crisis. BADIL: The Alternative Policy Institute. https://thebadil.com/policy/policy-papers/houses-without-homes-beiruts-affordable-housing-crisis/

Mouawad, J., Saghieh, N., 2019. The Plight of Housing Policies in Lebanon. The Legal Agenda. https://english.legal-agenda.com/the-plight-of-housing-policies-in-lebanon/