16 October

On October 16, 2008, the bankruptcy of Lehman Brothers triggered a historic collapse in global real estate markets. The bank’s failure, caused by excessive exposure to subprime mortgages, led property prices to drop by 30–50% across major cities worldwide. Mortgage lending froze, construction projects halted, and millions of homeowners faced foreclosure. Developers and investors suffered massive financial losses as confidence in property-backed investments evaporated. The crisis revealed deep flaws in global lending systems and forced governments to implement strict financial reforms to prevent future collapses. Central banks lowered interest rates, and real estate financing models were redesigned to emphasize risk management, transparency, and sustainable growth. The event forever changed how banks and investors approach property investment worldwide.