The Real Estate Crisis refers to a significant decline in the value of real estate assets, often triggered by various economic factors such as high interest rates, an overabundance of housing supply, or a downturn in the economy. This crisis typically results in a surge of mortgage defaults, foreclosures, and a substantial decrease in property sales. It can lead to widespread financial distress for homeowners, investors, and financial institutions, ultimately impacting the broader economy. The crisis is characterized by falling home prices, increased vacancy rates, and a general loss of confidence in the housing market. Historically, notable real estate crises have occurred due to speculative bubbles and subsequent market corrections, revealing vulnerabilities in the financial systems and housing policies.
Aozora Bank, one of Japan's largest banks, has recently issued a warning, joining the list of institutions being affected by the escalating crisis in the commercial real estate market. The…