Real Estate Bubble

The real estate bubble is an economic phenomenon characterized by an unjustified and rapid rise in property prices due to increased demand driven by speculation, rather than actual economic fundamentals such as real supply and demand.

Stages of a Real Estate Bubble:

1. First Stage – Slow Growth:

• Property prices start to rise gradually due to natural demand.

1. Second Stage – Speculation:

• Speculators enter the market, buying properties with the intent to resell quickly for profit, causing exaggerated price increases.