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Five Reasons Why House Prices Will Rise in 2021

Yesterday, Bank Leumi reported that house prices in Israel would rise between 4 to 10% in 2021. Today Ynet gave 5 reasons why:


1. Less Building

As a result of Israel's political crisis and the government's lack of a budget, fewer new building projects were authorized and less land was freed for building. Therefore, there is less supply of housing.

This project in Neve Shamir - Ramat Bet Shemesh - will be full of people by the end of 2021


2. Population Growth

Israel's population is growing and the country needs to build 55,000 new apartments a year. The deficit in apartments in relation to the population growth is growing rapidly, increasing demand.


3. The Crisis is Ending

During the pandemic, many families were worried about their financial future and held back and saved money. The financial crisis wasn't as severe as many anticipated and they are now ready to spend.


4.Investors are Back

In 2020, purchases of apartments by investors grew by 60%.


5. Low Interest Rates

Prime interest rates are at a historic of 0.1%. Additionally, the Bank of Israel has now allowed banks to increase the mortgages that they can set at that rate. This is further increased the funds available for purchasers.


In summary, less supply, growing demand, increased investments and an increased money supply will lead to an increase in the price of apartments in Israel, according to the report.


Contact us today so we can advise you on how you can invest in an apartment in Israel.


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