[size=38]What Is The Relationship Between Bank Loans And The Rise In Real Estate Prices?.. An Economist Who Answers[You must be registered and logged in to see this link.]LAST UPDATE 04/21/2022 | 5:55 PM
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The economic expert, Nabil Jabbar, explained, on Thursday, the impact of the initiatives and loans granted by private and governmental banks on the real estate market and the role of housing, while offering several solutions to address the housing crisis.
Jabbar said in an interview with the "Information" agency that "the initiatives and loans offered by private and governmental banks have caused, in one way or another, an increase in inflation in real estate prices and exacerbated the housing crisis," noting that "the main problem is that the volume of supply is much less than the demand."
He added, "The banks granted funds to the real estate market, which led to an increase in demand in light of the limited supply," noting that "in light of the limited units offered, the housing crisis remains."
And he indicated that “these initiatives, especially the initiative of the Central Bank, are pre-designed to market housing projects that are being established today at the expense of the rest of the other housing sectors,” criticizing “the state’s lack of a comprehensive housing plan that includes an integrated set of policies, initiatives and solutions, and it is illogical to rely on the Central Bank.” To implement policies that are supposed to be governmental in the first place.”
As for the appropriate solutions to address the housing crisis, the economist considered that “the economic solutions to address this crisis are numerous, but the most prominent of them are; Increasing the supply or commensurate with demand, as well as selling or distributing lands along the lines of the Dari initiative, according to studied areas close to cities, or through the development of new and modern cities.