Despite the uncertainty prevailing outside in the last six months, the Israeli housing market continues rising prices and contributes to optimism among investors. Despite data indicating decreased sales during this period, there was an increase of about 0.4% of the average price per property. The leading real estate companies in Israel report that the panic following the eruption of COVID19 is behind us, and the pace of sales is signaling that business is back as usual.
Investors are back in the game
One of the government’s measures to curb the rise in housing prices was to raise investors’ taxes. The purchase tax raised to 8% for anyone whose apartment they bought is not their first, a move that has indeed made many people stop and rethink. Today, five years later, it is clear to everyone that the new tax has not contributed to a slowdown in prices.
The lack of solid investment alternatives has continued to generate much interest in purchasing real estate in a market where the number of construction starts is consistently lower than demand. Investors in Israel buy one in three apartments sold in the market and continue to express confidence in the sector. Last July, the new Minister of Finance, Israel Katz, updated the purchase tax and reduced it to 5%.
Everyone is interested
The demand for residential apartments in Israel is at its peak The Israeli economy is considered by many to be one of the most stable in the world, and investors trust it even in an era in which uncertainty is particularly high. Many Jews around the world see it as a preferred destination for buying real estate in light of the rise in anti-Semitism. According to data from the Jewish Agency, about 250,000 more
Jews are expected to arrive in Israel in the next five years, and this fact, along with growing birth rates and demographic boom, will create a demand for additional housing units for years to come.
Choosing a great place to live in
Israel is considered one of the most prosperous countries in the world. Economic strength, a stable labor market and a pluralistic culture make it attractive both to its residents and to many who wish to move into it. This country is the Jewish homeland, where everyone can feel like they are part of a nation that attracts many immigrants intending to lay down roots and live their lives here.