Lecture

Real Estate Bubble: Economics of Land and Property

Description

This lecture delves into the concept of a real estate bubble, where the price of a property undergoes an abrupt and unjustified increase followed by a sharp decline. It explores the conditions that lead to a bubble, such as buyers observing price hikes and speculations turning into excessive participation. The lecture also discusses the confirmation of expectations through rising prices, the financial evaluations during a bubble, and the impact of accommodating financing on sustaining price growth. It analyzes historical data on property prices in the US and Switzerland, highlighting the risks associated with excessive optimism and the challenges of distinguishing between justified and unjustified price increases.

About this result
This page is automatically generated and may contain information that is not correct, complete, up-to-date, or relevant to your search query. The same applies to every other page on this website. Please make sure to verify the information with EPFL's official sources.