Real estate turbulences as a source of banking crisis.

Abstract

The dissertation focuses on the Real Estate turbulences as a source of banking crisis, and the results in some important areas in the world, such as the United Kingdom, the United States, some other Asian countries, Dubai and finally the main country of this dissertation, China. Furthermore, we assess the property cycles of the property market, and the unpredictable nature of the Real Estate. We found that there are a lot of factors that affect the property market, such as the rental values, types of rents, other subsectors, risk and profit, alternative investment methods, the transparency rates, and how they relate to investment, development market and the wider economy. In the dissertation we shall try to understand the reasons behind the banking crisis and the dysfunction of the property market. At the end of this research we conclude that the Real Estate turbulences are indeed a source of banking crisis, but there are much more potential factors which are not easy to be found, because of the complexity of the property market, and the psychology of the buyers-investors relationship. A characteristic example is the ghost cities in China that are result of the overbuilding plan of the Chinese government. Thus, one could claim that there are not only economical issues to be solved.