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Wael Abdul Rahman (author)'s picture
5 years 9 months ago
Wael Abdul Rahm... - Hi RA, thank you for your comment. You are absolutely right, you raise very important points through your questions, and they are definitely worth exploring in future articles. I hope I can gather enough data and information in order to write a useful article in that regard. Now let me answer your questions: It is extremely difficult to have statistics concerning the speculators as they are not defined as such in any database. However, from my personal experience, they are in general very wealthy; some of them buy with no debt, but the majority actually get loans (especially with the subsidies that the central bank is giving). However, it is important to note that regardless of the method of financing, very few buy these assets looking to hold them for a long time; in general they are looking to flip them quickly (within less than one year). Now for your last question regarding the banks' involvement in sustaining real estate pricing, I don't think that the banks are explicitly and intentionally trying to hold real estate assets; rather they are forced to do so in most cases (foreclosure for example). They don't want to hold real estate because most of them know that these are assets with depreciating value, and in the current situation, quite illiquid. I hope that was insightful, and thanks again for your constructive comment.