Housing Demands in a Complex Economic Situation: The Case of the Post-Covid-19 Pandemic in Palestine

Abstract

It was noticed that the post-Covid-19 pandemic (the year 2021) showed an economic crisis with many economic influences, and the radical changing of currency exchange values in Palestine is one of the most. Such currencies are Israeli, Jordanian and American currencies. This fact affected all economic sectors, especially the housing sector. This paper tries to understand the economic effects of the pandemic on the Palestinian housing market with special reference to the changes in currency values. Although many countries have suffered from economic impacts due to the pandemic, Palestine is chosen as a case for the complicity of the economic situation, as there is not a local curacy for the Palestinians yet. The effects of the currency fluctuation exchange were discussed in terms of financing, constructing, selling, and renting housing units. Then the paper explores the results of observations and interviews with many institutional investors, economic experts, and decision-makers to understand these impacts. The investigation revealed that the latest currency fluctuationduring the year 2021-greatly affected the private sector represented by ordinary investors, and small and large real estate development companies alike, and also affected the ability of individuals to buy housing, which also decreased the effective demand for housing in Palestine to a very low rate. This led us to believe that the Palestinian housing market is fragile and not prepared to receive sudden economic changes -such as this pandemic-due to the lack of a local currency for the Palestinians. Accordingly, a set of recommendations was listed to reduce such impacts in the future and to ensure supplying suitable housing units in terms of healthy, economic, and social aspects.