The depth and breadth of the Global Financial Crisis has confounded policymakers for nearly a decade. Although real estate and property factor prominently in discussions related to financial stability and the management of economic cycles, little consensus has emerged as to how better to detect, prevent or treat the fallout from irrational market exuberance.
Undoubtedly, the economic, social and political dimensions that the industry straddles add to the policy dilemma. Monetary and fiscal levers surely have a role, but so does macroprudential regulation and supervision. The relative nascence of the latter adds to what are already uncertain times, but a cohesive strategy that draws on the experience and knowledge of stakeholders from across the market spectrum should ultimately benefit both macroeconomic and financial stability.
Source : RICS