Real Estate Articles... Property Articles... Who Is Inflating the Real Estate Bubble?
Al-Aboudi bin Abdullah
Some people portray real estate as a balloon; others inflate it as it flies higher and prices rise. Unfortunately, there are those who believe this and repeat and promote this perception.
Real Estate and Its Prices Like any commodity, it depends primarily on supply and demand, and demand here is influenced by a range of factors such as:
- The country’s economic growth, population growth, and continued government support.
- The occupancy rate, unemployment rate, and the number of large-scale and smaller-scale projects.
- Low interest rates, land fees, and the diversity of housing products.
- An increase in the number of foreigners and their ability to own and invest in the sector.
- Urban expansion and the real estate rating among global classifications.
- The competitive advantage that a real estate developer may create to attract demand.
The impact of these factors on real estate and its prices varies.
