The impact of the mortgage on the real estate market: a study case in Saudi Arabia

Ajeeb, Samar; Lai, Wei Sieng

doi:10.1108/ijhma-06-2022-0085

Cited by 3 publications

(2 citation statements)

References 28 publications

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“…Jadalhaq (2017) discussed regulatory framework and real estate legislation as part of the most significant variables that affect success and growth of pre-letting and pre-sale financing in real estate industry. The regulatory framework includes the laws and regulation that govern the operation pre-letting and pre-sale financing arrangements (Ajeeb and Lai, 2022). Dynamism and effectiveness of the business or activities of any sector of an economy are observed to be significantly affected by the regulations and government procedure around such business.…”

Section: Literature Reviewmentioning

confidence: 99%

Adoption of pre-letting and pre-sale financing arrangements for real estate development in a developing economy: an assessment of the influencing factors

Olayiwola,

Aluko,

Ayodele

2023

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PurposePre-letting and pre-sale financing arrangements have been widely adopted to increase housing delivery in the developed economy. Despite the increasing level of adoption in some developed countries, some are reverting to spot property buying because of factors militating the adoption of pre-letting and pre-sale financing. However, little has been done on the factors influencing the adoption of these trust-based financing arrangements in the developing economy where there are challenges of trust and market transparency.Design/methodology/approachUsing a closed-ended questionnaire, 87 property development companies (PDCs), which constituted 63.5% of the 137 PDCs in Lagos metropolis, were sampled. Variables that influence adoption of pre-letting and pre-sale financing arrangements were presented to respondents for rating on a five-point Likert scale, ranging from 1 (not influential) to 5 (very highly influential). With the aid of SPSS software, acquired data were analysed using principal component analysis (PCA), mean rating and standard deviation.FindingsThe PCA finding revealed that factors influencing the adoption of pre-letting and pre-sale financing had 69.641% total variance. Top-rated components were fear of financial risk and firm’s reputation and poor government involvement and contractors' credibility, with 15.114% and 11.895% variances, respectively. The study findings suggested that the buyers' apprehension regarding the transfer of financial risk and the reputation of the firms significantly influence their decision to embrace both arrangements. As a result, the buyers' willingness to engage the financing arrangements is reduced, which consequently imparts adoption negatively. Furthermore, there is worrisome lack of government involvement, a crucial aspect for the success of such arrangements.Practical implicationsPre-letting and pre-sale financing arrangements are found to be highly suitable for environments where there is trust. The findings enlighten the development firms on the need to uphold their reputation, as buyers attach great significance to the credibility and integrity of the companies they engage in business.Originality/valueThis paper is one of the few attempts that have sought to explore the factors influencing pre-letting and pre-sale financing arrangements in an emerging market like Nigeria.

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Section: Literature Reviewmentioning

confidence: 99%

Adoption of pre-letting and pre-sale financing arrangements for real estate development in a developing economy: an assessment of the influencing factors

Olayiwola,

Aluko,

Ayodele

2023

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“…Additionally, remittances as a percentage of GDP are used to measure remittance inflows, with data collected from the World Development Indicator database (WDI) of the World Bank. Following existing empirical literature (Ajeeb et al, 2023;Akobeng, 2016;Borja & Hall, 2018;Koechlin & León, 2007;Mallick et al, 2020;Tsaurai, 2018;Waheed & Shittu, 2012), this paper also incorporates various control variables. These include the political stability and absence of violence/terrorism index (a measure of political stability), the annual percentage growth rate of GDP (an indicator of economic growth), trade as a percentage of GDP (a measure of trade openness), the percentage of gross secondary school enrolment (a measure of education), and the percent change in the Consumer Price Index (CPI) to assess the inflation rate.…”

Section: Description Of Variables and Datamentioning

confidence: 99%

Do Migrant Remittances Decline Income Gap in the MENA Region?

Elorabi,

Ishak,

Mohamed Nor

et al. 2023

IJAREMS

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This paper investigates the impact of inward remittances on income inequality in thirteen Middle East and North Africa (MENA) economies, spanning from 1996 to 2020, employing the pooled mean group (PMG) technique. This article reveals that remittances from migrants to the MENA region contribute to increased income inequality, indicating that the households receiving these remittances are initially relatively well-off, and the funds significantly enhance their living standards in comparison to other families. Consequently, the paper suggests addressing challenges faced by low-income individuals aspiring to migrate, particularly in nations with high unemployment rates. These challenges encompass educational and skill deficits, information disparities, and financial limitations. Furthermore, the paper proposes implementing supplementary policies to counteract the adverse effects of remittances on income distribution, including directing resources towards initiatives that benefit the less affluent, particularly those focused on improving education, healthcare, and infrastructure. Lastly, it emphasizes the importance of prioritizing policies that foster political stability to create a business environment conducive to human and infrastructure investments.

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Analysis of the Current Situation of the Construction Industry in Saudi Arabia and the Factors Affecting It: An Empirical Study

Yu,

Shang,

Wang

2024

Sustainability

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The construction industry in Saudi Arabia has been modernized through the implementation of green building technologies and intelligent building systems, which have facilitated the sustainable development of the construction industry in Saudi Arabia. However, there is a paucity of research on the current situation of the construction industry in Saudi Arabia. In this study, the super-efficient epsilon-based measurement (EBM)–Malmquist model was used to measure the static and dynamic efficiency of the construction industry in the administrative areas of the 13 provinces of Saudi Arabia from 2013 to 2022, and the Tobit model was used to empirically analyze the factors affecting the efficiency of the industry. In addition, the spatial autocorrelation of the efficiency of the industry was analyzed using Moran’s Index (MI) to study the characteristics of the spatial distribution of industrial efficiency as well as the effectiveness of resource allocation. The study shows that Saudi Arabia’s construction industry is at a low level of development; the population, GDP, and carbon dioxide emissions have a significant impact on the efficiency of the industry; and the development of the industry can help to reduce carbon dioxide emissions, thus promoting environmental sustainability; Saudi Arabia’s construction industry has a spatial spillover effect but does not have a significant agglomeration effect. This study accurately identifies the current situation of the development of the construction industry in Saudi Arabia and proposes several countermeasures and opinions, which are expected to provide a theoretical basis for realizing its sustainable development.

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The impact of the mortgage on the real estate market: a study case in Saudi Arabia

Cited by 3 publications

References 28 publications

Adoption of pre-letting and pre-sale financing arrangements for real estate development in a developing economy: an assessment of the influencing factors

Adoption of pre-letting and pre-sale financing arrangements for real estate development in a developing economy: an assessment of the influencing factors

Do Migrant Remittances Decline Income Gap in the MENA Region?

Analysis of the Current Situation of the Construction Industry in Saudi Arabia and the Factors Affecting It: An Empirical Study

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