Recession hits the real estate market in Yemen
English - Tuesday 01 November 2022 الساعة 08:02 am
Mocha, NewsYemen, private:
The recession hit the real estate market in Yemen, as the real estate sector is witnessing a significant decline in economic activity, driven by high prices that exceeded logical limits, and the large supply of real estate and land in all Yemeni governorates.
The real estate sector was the most attractive economic sector during the past years, as Yemeni expatriates, politicians, influential people and money changers directed their money to buy real estate assets, in order to avoid investment risks during the conflict.
The real estate market in Yemen is witnessing a significant decrease in the movement of buying and selling, as a result of the deteriorating economic conditions and the continuation of the war, and the cautious anticipation of businessmen and money people, who have stopped buying and selling operations of fixed assets to avoid losses.
On his Facebook page, through which he presents engineering and architectural recommendations, engineer Adnan Al-Athori said that there is a great recession in the real estate market, a stagnation, not a drop in prices.
He added, "The construction movement has almost stopped, and this is confirmed by material dealers, concrete owners, contractors and engineers."
He explained that the seller refuses to lower his price from the current price, and the buyer cannot buy at the current price, because he sees investment in this sector as futile, and he turns to another sector to invest in.
Al-Athori predicted that the price drop will occur after a period of depression, pointing out that real estate prices rose in an irrational way and must return to the natural price in order to revive the movement in the real estate market.
He said that the problem of stagnation and stagnation experienced by the real estate and construction sector needs the authority to intervene to develop solutions and remedies.
Economic experts differ in determining the period of time that an economic depression may take. Some believe that a depression extends only during the period in which economic activity declines, while most experts believe that a depression extends until the period in which economic activity returns to levels close to normal levels.
The decline in the real estate market in Yemen comes due to its exorbitant prices, after it achieved an increase in the market value of more than 400% during the past years, especially in the capital Aden, Sana’a, Hadramout, Ibb, Marib, and parts of Taiz Governorate: Dimna Khadir, Al-Turbah Dhahban, and Mocha .
