Removing tax exemptions and implementing a vacant property tax would have the long-term benefit of increasing the overall number of rental units on the market and taming rental prices.36 The vacant property tax revenue can also be earmarked for landlord subsidies and public housing projects, while those who rent to IDPs and returnees would be eligible for tax incentives.
This policy should apply to properties that have been vacant for a specified period and gradually increase over time. Collected taxes should then be earmarked for public housing initiatives and landlord subsidies (see below).
Expand the AMAN Cash Transfer Programme
Concerned stakeholders should scale up the existing World Bank-funded ‘Aman’ cash transfer programme. Currently supporting some 93,000 households,37 it has a proven implementation capacity. This makes AMAN an ideal conduit for targeted financial assistance for IDPs and returnees who have lost their homes and livelihoods.
This initiative should reach out to international donors to increase its funding allocation, which currently stands at US$300 million for 24 months38, to cover the increased needs of IDPs. It should also partner with local banks and financial institutions to expand its fund disbursement mechanisms. The current system relies on receiving an SMS and benefits redeemed through mobile transfer operations.
Long-term solutions for social housing equity
Lebanon needs a national housing policy that addresses its housing crisis at the root, ultimately shifting the model to benefit the Lebanese public over wealthy investors, speculators, and large landowners. The Public Corporation for Housing (PCH), Lebanese civil society stakeholders, and I/NGO specialists will need to collaborate and develop a comprehensive national housing policy to complement and expand the above short-term solutions. This should include establishing a committee consisting of civil society actors, PCH delegates and other relevant government representatives, and I/NGOs to oversee policy implementation and coordination of the emergency rent cap measure and vacant property tax policy, as well as the standardisation of rental agreements and enforcement of tenant protections. Long term policy should also include:
Repurposing State-owned Buildings or Plots for Housing Options
As part of the policy laid out above to identify near-ready state-owned properties for housing for IDPs and returnees, the assessment should also identify viable options for housing solutions that require longer-term planning. These options consist of state-owned properties and lands across the country designated for public housing, but which have been neglected over the years, requiring investments to (re-)build or make suitable for public use. The earmarked revenues from the vacant property tax should be channelled into such housing projects. These plots should be considered a key cornerstone of a national strategy to solve the country’s broader and longer-term housing needs.39 Housing specialists in the Lebanese civil society sector and the international community, together with the PCH, should lead the process of identifying viable options for longer-term use.
This policy would then identify and explore the use of plots and properties owned by all state actors listed above and devise a five-to-ten-year plan to convert these into viable, longer-term public housing projects. It would also develop plans to renovate state-owned buildings that house IDPs once they return home to create long-term housing options for the general public.
Establish a Renovation Programme to Complement the Vacant Property Tax Policy
In collaboration with civil society and I/NGOs, the PCH should prioritise establishing mechanisms to assess private property renovation needs and develop financial tools to facilitate upgrades rather than focusing on new construction. Since the 2019 economic crisis, many landlords have lacked the financial means to upgrade their properties.40 Buildings still standing in the areas that were bombed, and those in surrounding neighbourhoods, are also disproportionately in need of repairs and renovations. Thus, this policy aims to address landlords’ widespread financing needs to carry out property renovations.
Looking Ahead
Inevitably, the major challenge facing Parliament in legislating progressive reforms to Lebanon’s land and property tax system is the vested real estate interests of political decision-makers. Historically, such parties have skewed policy crafting to allow wealthy groups, landowners, and speculators to accumulate wealth and continue practices that financialize land and property.41 Most recently, the absence of a tax on vacant built properties and the reduction of real estate transfer profits from 15 percent to 1 percent in the 2024 general budget prove the significant bias towards the interests of the wealthy and property owners.42
However, the population’s current, overwhelming housing needs and the risks to social stability they present create an immense impetus to push through fundamental change. The pressure on the political class from their constituencies inside the country and international stakeholders abroad must galvanise to make these policy shifts a reality.
Lebanon’s current housing crisis, exacerbated by the recent conflict, requires immediate and sustained action to address short-term humanitarian needs and long-term structural deficiencies. With over 600,000 IDPs returning to destroyed or damaged areas and thousands still unable to return home, immediate measures such as emergency rent controls, repurposing vacant state-owned buildings, and scaling up financial assistance programmes are essential to prevent homelessness and ensure housing stability. These policies must be paired with infrastructure and services investments to support displaced populations and the host communities absorbing them.
Over the long term, Lebanon must adopt a comprehensive national housing policy prioritising affordable and equitable housing solutions. This includes reforming tax policies to incentivise the use of vacant properties, addressing decades of neglect in public housing development, and engaging in urban planning of unused or derelict state-owned plots and buildings designated for public housing.
The authors would like to thank Tala Alaeddine, Research Unit Coordinator at Public Works Studio, for her generous and valuable contributions to this policy brief.
[1] Ehrenberg-Peters, Nancy, and Benjamin Fève. “Profit or Protection: The Fallout of Lebanon’s Housing Crisis.” Badil, October 18, 2024. https://thebadil.com/analysis/profit-or-protection-the-fallout-of-lebanons-housing-crisis/.
[2] Kuwait News Agency, “UN: 600,000 displaced persons started returning home in Lebanon,” December 5, 2024. Retrieved from: https://www.kuna.net.kw/ArticleDetails.aspx?id=3207532&language=en
[3] Jo, Lujain. “Family Returns to Their Lebanese City to Find a Crater Where Their 50-year-old Home Once Stood | AP News.” AP News, December 1, 2024. https://apnews.com/article/lebanon-return-destroyed-family-home-e147e2ae416986cb75ae9fd00be347d0.
[4] Berg, Raffi. “Israel Warns Against Returning to 60 Lebanon Villages,” November 29, 2024. https://www.bbc.com/news/articles/cdxv1727g5lo
[5] Crean, Rosabel. “Houses Without Homes: Beirut’s Affordable Housing Crisis.” Badil, November 22, 2023. https://thebadil.com/policy/policy-papers/houses-without-homes-beiruts-affordable-housing-crisis/.
[6] Interview with Tala Alaeddine from Public Works Studio, by Nancy Ehrenberg-Peters, November 4, 2024.
[7] Fawaz, Mona, and Abir Zaatari. Housing Vacancy in Beirut 2023: Drivers and Trends. Policy Report. Beirut: Beirut Urban Lab, American University of Beirut, June 2024. https://api.beiruturbanlab.com/Content/uploads/Articles/616~Vacancy-report-eng-pages.pdf.
[8] Crean, Rosabel. “Houses Without Homes: Beirut’s Affordable Housing Crisis.” Badil, November 22, 2023. https://thebadil.com/policy/policy-papers/houses-without-homes-beiruts-affordable-housing-crisis/.
[9] Staff, The New Arab. “Lebanon’s Leaders Consider Macabre Plan for Beirut War Rubble.” The New Arab, n.d. https://www.newarab.com/news/lebanons-leaders-consider-macabre-plan-beirut-war-rubble.
[10] Crean, Rosabel. “Houses Without Homes: Beirut’s Affordable Housing Crisis.” Badil, November 22, 2023. https://thebadil.com/policy/policy-papers/houses-without-homes-beiruts-affordable-housing-crisis/.
[11] Interview with the Governor of Nabatieh, by Nancy Ehrenberg-Peters, November 4, 2024.
[12] Nasser Yassin, from Malcolm H. Kerr Carnegie Middle East Center. “From Conflict to Crisis: Understanding Lebanon’s Humanitarian Needs,” October 31, 2024. https://www.youtube.com/watch?v=SnxxAmEp4Ro.
[13] “Mobility Snapshot – Round 61 – 11-11-2024 | Displacement Tracking Matrix,” April 29, 2024. https://dtm.iom.int/reports/mobility-snapshot-round-61-11-11-2024?close=true.
[14] ReliefWeb. “Lebanon: Flash Update #41 – Escalation of Hostilities in Lebanon, as of 4 November 2024 – Lebanon,” November 6, 2024. https://reliefweb.int/report/lebanon/lebanon-flash-update-41-escalation-hostilities-lebanon-4-november-2024.
[15] “Mobility Snapshot – Round 61 – 11-11-2024 | Displacement Tracking Matrix,” April 29, 2024. https://dtm.iom.int/reports/mobility-snapshot-round-61-11-11-2024?close=true.
[16] International Organization for Migration (IOM). Mobility Snapshot Round 61. November 11, 2024. https://dtm.iom.int/reports/mobility-snapshot-round-61-11-11-2024?close=true.
[17] Ehrenberg-Peters, Nancy, and Benjamin Fève. “Profit or Protection: The Fallout of Lebanon’s Housing Crisis.” Badil, October 18, 2024. https://thebadil.com/analysis/profit-or-protection-the-fallout-of-lebanons-housing-crisis/.
[18] “Lebanon – Mobility Snapshot – Round 50 -03-10-2024 | Displacement Tracking Matrix,” https://dtm.iom.int/reports/lebanon-mobility-snapshot-round-50-03-10-2024?close=true.
[19] World Bank Group. “New World Bank Report Assesses Impact of Conflict on Lebanon’s Economy and Key Sectors.” World Bank, November 28, 2024. https://www.worldbank.org/en/news/press-release/2024/11/14/new-world-bank-report-assesses-impact-of-conflict-on-lebanon-s-economy-and-key-sectors.
[20] Gustafsson, Jenny, “Cattle, Crops and Ancient Olive Groves: Lebanon’s Farmers ‘Lose Everything’ to Israeli Bombs.” The Guardian, November 12, 2024. https://www.theguardian.com/global-development/2024/nov/12/cattle-crops-and-ancient-olive-groves-lebanons-farmers-lose-everything-to-israeli-bombs.
[21] Nasser Yassin, from Malcolm H. Kerr Carnegie Middle East Center. “From Conflict to Crisis: Understanding Lebanon’s Humanitarian Needs,” October 31, 2024. https://www.youtube.com/watch?v=SnxxAmEp4Ro.
[22] Ferrando, Megan, “Amid Lebanon’s Perfect Storm of Crises, Water Demands Attention,” Middle East Institute, October 17, 2022. https://www.mei.edu/publications/amid-lebanons-perfect-storm-crises-water-demands-attention.; ACAPS, “Lebanon – The effect of the socioeconomic crisis on healthcare,” ACAPS. October 19, 2023. https://www.acaps.org/fileadmin/Data_Product/Main_media/20231019_ACAPS_thematic_report_Lebanon_effect_of_socioeconomic_crisis_on_healthcare.pdf
[23] ACAPS, “Lebanon – The effect of the socioeconomic crisis on healthcare,” ACAPS. October 19, 2023. https://www.acaps.org/fileadmin/Data_Product/Main_media/20231019_ACAPS_thematic_report_Lebanon_effect_of_socioeconomic_crisis_on_healthcare.pdf
[24] Lilian Diab, Jasmin, Skulte-Ouaiss, Jennifer, “Ignored, Displaced and Powerless: Lebanon’s IDPs Caught Between Escalating Hostilities and Government Neglect – Researching Internal Displacement,” Researching Internal Displacement, October 8, 2024. https://researchinginternaldisplacement.org/short_pieces/ignored-displaced-and-powerless-lebanons-idps-caught-between-escalating-hostilities-and-government-neglect/.
[25] World Bank Group, “New World Bank Report Assesses Impact of Conflict on Lebanon’s Economy and Key Sectors,” World Bank, November 28, 2024, https://www.worldbank.org/en/news/press-release/2024/11/14/new-world-bank-report-assesses-impact-of-conflict-on-lebanon-s-economy-and-key-sectors.
[26] Nasser Yassin, from Malcolm H. Kerr Carnegie Middle East Center. “From Conflict to Crisis: Understanding Lebanon’s Humanitarian Needs,” October 31, 2024. https://www.youtube.com/watch?v=SnxxAmEp4Ro.
[27] Forced Migration Review. “Resolving the Issue of War Displacement in Lebanon – Forced Migration Review,” n.a. https://www.fmreview.org/assaf-elfil/.
[28] Reuters. “Hezbollah to Pay Total of $77 Million in Rent for Families Affected by War.” Reuters, December 5, 2024. https://www.reuters.com/world/middle-east/hezbollah-pay-total-77-million-rent-families-affected-by-war-2024-12-05/.
[29] Khattab, Abdulfattah, “Lebanon Will Need Huge Help in Rebuilding… but From Who?,” Al Majalla, October 7, 2024, https://en.majalla.com/node/322530/business-economy/lebanon-will-need-huge-help-rebuilding%E2%80%A6-who
[30] Allaw, Saada, “Policy of Destitution Has Led to Undignified Living in Lebanon’s al-Mankoubin District.” Legal Agenda. July 31, 2019. https://english.legal-agenda.com/policy-of-destitution-has-led-to-undignified-living-in-lebanons-al-mankoubin-district/.
[31] “Geographical Distribution of Private & State Property,” Public Works Studio, accessed December 15, 2024, https://publicworksstudio.com/en/geographical-distribution-of-private-state-property/.
[32] A 2015 analysis by Public Works found 1,285 public properties in Beirut, 1,164 of which belong to the municipality, including vacant plots and buildings. However, an accurate figure on how many remain vacant requires a mapping.
[33] Interview with Tala Alaeddine from Public Works Studio, by Nancy Ehrenberg-Peters, November 4, 2024.
[34] Interview with Tala Alaeddine from Public Works Studio, by Nancy Ehrenberg-Peters, November 4, 2024.
[35] Fawaz, Mona; Zaatari, Abir, “LCPS – Property Tax: No More Vacancy Exemptions,” LCPS, July 1, 2020, https://www.lcps-lebanon.org/en/articles/details/1766/property-tax-no-more-vacancy-exemptions-(press-room).
[36] Interview with Tala Alaeddine from Public Works Studio, by Nancy Ehrenberg-Peters, November 4, 2024.
[37] World Bank Group, “US$300 Million to Scale-Up Support to Poor and Vulnerable Lebanese Households and Strengthen Social Safety Net Delivery System,” World Bank, June 27, 2023, https://www.worldbank.org/en/news/press-release/2023/05/25/us-300-million-to-scale-up-support-to-poor-and-vulnerable-lebanese-households-and-strengthen-social-safety-net-delivery.
[38] World Bank Group, “US$300 Million to Scale-Up Support to Poor and Vulnerable Lebanese Households and Strengthen Social Safety Net Delivery System,” World Bank, June 27, 2023, https://www.worldbank.org/en/news/press-release/2023/05/25/us-300-million-to-scale-up-support-to-poor-and-vulnerable-lebanese-households-and-strengthen-social-safety-net-delivery.
[39] Interview with Tala Alaeddine from Public Works Studio, by Nancy Ehrenberg-Peters, November 4, 2024.
[40] Interview with Salim Rouhana from the World Bank, by Nancy Ehrenberg-Peters, December 6, 2024.
[41] Interview with Tala Alaeddine from Public Works Studio, by Nancy Ehrenberg-Peters, November 4, 2024.
[42] Public Works Studio, “The 2024 Budget: Rewarding Property Owners and Speculators,” accessed, https://publicworksstudio.com/the-2024-budget-rewarding-property-owners-and-speculators/.