Out of the box

Are the speculators back?

Ismail Al Hammadi

August 10, 2021

“Stay tuned for the new project,” or a new phase of the project in the region, with an exceptional and exclusive purchase plan for those who buy on launch day.

A week or 10 days later, the launch date of this project... Three or four hours after the launch of the project... An announcement from the main developer that: "All units offered for the project have run out!"

This is the scene that has become repeated in the real estate sector with every announcement of the launch of a new project or a new phase of it, and after a period of time, you find the same project for sale, and its units are available in bulk!

You ask yourself: How did this happen when the developer himself announced that all units had been sold out on the day of its launch?!

To answer this question, you are faced with two scenarios, the first: either the buyers who booked the real estate unit on the launch date of the project retracted their decision to complete the purchase process, so it was put up for sale, and the second: that there is a group of investors booking a large group of units at exclusive prices from the developer, and then Put it up for sale again at new prices.

If the second possibility is true, then this opens a door in the market that has been closed for years, which is speculation. Have speculators returned to the market?

As a result of what your eyes see and your ears hear on the day of the launch of the new projects, and because of what happens to you after a period of launch, the speculators may return.. Yes, and mostly that the players in this role are people who understand well the market game, are fully aware of the mysteries of the sector and its cycles from time to time, and enjoy With great awareness and acumen to achieve pre-planned profits, they take advantage of the launch opportunity and acquire a significant number of offered units, then resell them and make quick profits.

The return of speculation in the market is not a good thing, and it does not serve the aspirations sought by the sector, nor does it serve the class of investors that make up the largest proportion of the market, so the spread of speculative operations would violate the base of market prices from the main developer, so you find the developer facing a competitor in The market is in a product that he produced, and here he will have in this case only one solution, either to go up or down to the same price as his new competitor.

The best solution for him and the market in general may be to drain the sources of speculation from the roots during the launch of projects.

• The return of speculation in the market is not a good thing, and does not serve the aspirations sought by the sector.

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