Beirut: Best Neighborhoods Overview for Expats and Foreign Real Estate Investors

Beirut is one of the most continuously inhabited cities in the world, somewhat close in age to Damascus. Human settlement in the area that would today be considered Beirut or the surrounding region goes back at least 5,000 years. This is why the Biblical cedar tree--which puts down deep roots--is the national symbol of the country, appearing on its red and white flag.

Photo credit: Beirut panorama photograph

Uploaded to iStock by ali dbouk Feb 2022

The area was considered a strategic trading post and grew into a city ruled by the Phoenicians, Greco-Romans, Byzantines, Arabs, Crusaders, Ottomans, and the French – who left behind their language. In the Ancient times, it functioned as a port city for the Phoenicians, and it filled the same role during the Roman Empire under the name of Berytus, and it was here that a law school was established and became prestigious in Antiquity. The city changed hands many times, to the Byzantines, Arabs, Crusaders, eventually settling into the Ottoman Empire of the 1500s, who would remain to be the custodians of Beirut until the aftermath of WW1, where it became a postwar French Mandate. It was in this era that many future elites of the country were forged in French-speaking Catholic schools, as with the English-speaking Catholic schools of neighboring Syria and Palestine. The Lebanese people would be granted their independence from French rule in 1943, but each of these historic empires has left a distinct mark on the city's architecture, culture, and traditions.

In its early 1970s heyday, the city was popular with Gulf sheikhs for investment as well as recreation. By the end of the Seventies, it faced mass destruction due to the Lebanese civil war, which was followed by the Israeli invasion of the early 1980s. The Israeli occupation of southern Lebanon--which spawned Hezbollah and the 'Axis of Resistance'--lasted for two decades. There was also a brief war in southern Lebanon, back in the summer of 2006, which resulted in an Israeli withdrawal.

Photo credit: The Lebanese flag flying from the Martyrs Square Monument, a symbol of Beirut

Uploaded to iStock by Erich Karnberger Nov 2019

The postwar period saw a good amount of reconstruction, with the damage being repaired and new developments being constructed. Today, Beirut is a city of contrasts, there are several districts that are almost opposites to each other, this is where ancient history meets modern development. Since it is the capital of Lebanon, it is also the political and economic heart of the country with Martyrs Square as the symbolic center. Beirut is home to government institutions, major businesses, and cultural institutions. It never did lose its reputation for nightlife and speakeasies. The Hamra district with the American University and Lebanese American University nearby can testify to that.

The Lebanese economy is heavily reliant on banking, finance, shipping, and tourism, with the port of Beirut being one of the largest and busiest in the eastern Mediterranean. But the local and regional events of recent years have been brutal toward Lebanon – with the month of August being the cruelest. To date, there has been: an economic crisis with bank runs in August 2019 and the 2020 Beirut port fertilizer explosion that was so large it killed thousands, and spurred rumors that a small tactical nuclear warhead had gone off.

For this month of August 2024, the war in Gaza drags on, with Hezbollah exchanging drone attacks, rocket fire and missile strikes with the Israelis along the southern Lebanon border. There is a strong possibility if Iran retaliates for the killing of a Hamas leader in Tehran, alongside major salvoes of Hezbollah's most accurate missiles striking from Haifa to Tel Aviv, that we could see a large-scale Israeli bombing campaign against not only the south, but parts of Beirut and its suburbs.

However, not all hope is lost. Due to the current economic crisis, the price of property has been devalued, to the point that many properties are now attractive to European or North American buyers, especially for the repat children of Lebanese immigrants. Indeed, this is why our very first article for the ESW MENA section published at the now defunct Ghost.io ESW blog was about the coming wave of Lebanese repats, including many cryptocurrency investors. If a foreign investor has access to stable currencies such as the USD (or USDT) or Euro, the FUD over Israel-Iran/Hezbollah war threats represents a historic opportunity to acquire Beirut and other Lebanese real estate at a reduced cost. (A few hours after our editor received this article, Israel launched a major air strike and the war cabinet supposedly met to plot the coming northern offensive--so check back in a few weeks).

So keep in mind, you still need to weigh in the fact that the political instability in Lebanon may render the current advantages moot at any moment. This is especially the case if you have even an inkling of turning a significant investment property into a vacation rental or--for a larger Mediterranean-style villa--a weddings or events space. But even with these risks, the downtown area of Beirut and the districts by the waterfront have been seeing a steady flow of investments in real estate.

Photo credit: Beirut Le Yacht Club and waterfront, aerial view

Uploaded to iStock by rakkaustv July 2019

Think of Beirut as a gorgeous town with beautiful people, living by an active volcano that may erupt. Or this volcano could abide, with a few destructive lava flows here and there for a lifetime. If full-scale Israel-Hezbollah war becomes a reality, we would advise you to stay away from the country. But if it doesn’t happen, the potential for significant long-term growth with peace in the Levant becomes a reality, and you will have made a serious profit.

Districts like Gemmayzeh, Mar Mikhael, and Ashrafieh are particularly sought after for their charm and proximity to cultural attractions, as examples of ongoing foreign investment and real estate growth in the city. There are many districts in Beirut that are considered good and of a high quality, such as Al Hamra in West Beirut, it is home to the American University in Lebanon, and full of cafes and shops, with some war memorials. It is also considered low-to-moderate in terms of living expenses.

There is also Raouché, south of Hamra, by the Mediterranean. But it's much more expensive than Hamra, which is more of a resort district than a place to live in. Another neary district is Achrafiyeh, a much more calm place than the previous two districts, where there is a local Christian majority. This area is known for its churches, and in Badaro there is the National Museum and the Horsh Beirut park. Overall, we would rate this area as inexpensive to moderately priced.

There is also the aforementioned Gemmayzeh (the SoHo of Beirut), which used to be known as the local hipster area full of bars and affordable flats, and was not too expensive to buy. In Mar Mikhael – it is similar and also considered a nightlife area. Then there is the downtown area, more known for some of the Lebanese civil war ruins as well as its shopping areas. There are also church spires and mosque minarets overlooking stately apartments and three story townhomes.

Hamra (West Beirut)

This is an area with crowded and narrow streets, full of cafes, shops, restaurants, home to the American University of Beirut, so it’s full of foreigners and locals alike. It has some war ruins such as apartment buildings that are collapsed or shot up—as a reminder of the costs associated with sectarianism, exacerbated and exploited by outside powers. The rent/buying price is cheap to mid, and Hamra is convenient in its central location despite the traffic jams. The main street here is Rue de Hamra (Hamra Street).

Raouché

This is a waterfront district, known for its famous Pigeon Rocks, located south of Hamra. It's known for seafood restaurants, and being one of the most expensive districts of the city. It's full of hotels and skyscrapers, and the monthly rent/prices to buy are expensive here, the main street is Avenue de Paris.

Achrafiyeh

Full of villas, churches, and other cultural sites such as galleries and pieces, one of the quiet districts, considered an elegant neighborhood, that contains Sassine Square and Sursock house. The National Museum of the city is also nearby, the main street is Independence Avenue and rent/buying prices are high.

Badaro

An uninteresting district, contains the national museum and has a park by the name of Horsh Beirut, main street is Badaro street, it is not too expensive, full of cafes, cultural sites, and overall a sleepy district.

Gemmayzeh

Colorful district, full of street art, cafes, lounges, and hangout places, it also has many shops, and a residential area. It also has the Ottoman-style architecture Mohammed Al-Amin mosque closer to Downtown, the main street is Gourad Street, prices here are neither expensive nor cheap, and it can also be considered a nightlife district.

Mar Mikhaël

This is a district we've said is known for its nightlife, full of restaurants and clubs. But it is not primarily considered a residential area. Its main street is Armenia Street (and yes, as Armenians reading this know, there is a Beirut Street in Yerevan) and rent/buying prices are mid-range, so it makes for a good starting pad for expats new to the country.

Photo credit: Side doors to St George Greek Orthodox Cathedral, located in downtown Beirut

Uploaded to iStock by Ian Waldraff Nov 2020

Downtown (City Centre)

Among downtown Beirut's most famous landmarks may be the St George Greek Orthodox Cathedral, located between Achrafiyeh and Gemmayzeh. It has historical ruins, malls, residential areas, and so on. It has war ruins and many, and also has the Beirut markets as well. It also has the Saint Georges Maronite Cathedral, St Elias Greek Catholic Cathedral, and Lady of the Light Shrine.

The ruins of the Roman/Byzantine baths are nearby, and so is the Lebanese Parliament. Martyrs and Nijmeh Square are full of shops and cafes as well, the main street is Waygand Street, but the rent here is still not too expensive for paid in USD/EUR expats.