It’s no longer just about the substantial price gap between off-plan and ready properties.
The collapse of Lehman Brothers wasn’t the direct cause of the 2008 financial crisis.
Numerous academic studies have explored decisions made in an interconnected economy and concluded that, despite Lehman’s heavy reliance on leverage, the core issue was that investors were unaware of the obscure risks they had undertaken in their quest for easy profits. In a time of plenty, where traditional ‘scarcity economics’ is losing its relevance, there’s always a temptation to adopt new frameworks that seemingly ignore basic economic principles. While the latest edition of the ‘Economist’ has labeled the current real estate market a ‘super-cycle’, the rationale behind this bears a striking resemblance to when the same publication predicted in the late 1990s that oil prices would remain in the single digits indefinitely.
