Islamic Financial Institutions and Real Estate Cycle

A Review

Authors

  • Siti Latipah Harun Islamic Business school, Universiti Utara Malaysia
  • Norazlina Abd Wahab Islamic Business school, Universiti Utara Malaysia
  • Rosylin Mohd Yusof UUM Kuala Lumpur, Universiti Utara Malaysia

DOI:

https://doi.org/10.52962/ipjaf.2018.2.3.57

Keywords:

Islamic financial institutions, real estate cycle, literature review

Abstract

The role of Islamic financial intuitions is essential in providing Islamic financing specifically to investors and stakeholders to invest in real estate. Therefore, understanding the link of the real estate cycle to the financial institutions is crucial. This is because the real estate cycle is one of the critical elements that will affect financing decisions and strategies of the banking sectors. Hence, this paper employed meta-analysis which aims (1) to systematically review survey the growing literature on real estate cycle and its links to the financial institutions; (2) to highlight possible cross-country trend analysis financial strategy among investors in dealing in with the real estate cycle. The results of the study suggest that during the peak cycle or period of crisis, most investors are risk-averse and increase the risk to the financing of real estate as well. This real estate cycle that occurs almost every 10 years in conventional real estate sectors also give some consequences to the Islamic financial institutions. This paper suggests to investors to understand the real estate cycle and its impact on Islamic financial institutions.

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Published

2018-07-01

Issue

Section

Main Section

How to Cite

Islamic Financial Institutions and Real Estate Cycle: A Review. (2018). Indian-Pacific Journal of Accounting and Finance, 2(3), 16-23. https://doi.org/10.52962/ipjaf.2018.2.3.57

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