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  • Writer's pictureShirley Stamelman

Will House Prices Continue to Rise?

House prices have been steadily rising in Israel for the past twenty years. Will that growth continue?

Well obviously, no one can give you a definite answer either way. There have always been crashes, but generally bricks and mortar is a very good investment, especially in Israel. Here’s why:

  • Israel’s population is growing rapidly, and homebuilding isn’t keeping pace, so demand is not meeting supply

  • There is a strong culture of homeownership in Israel

  • Israel is a very small country, so land comes at a premium here, as there isn’t that much available

  • Available land is mostly controlled by the Israel Lands Authority. It is in its interest to limit the supply of land for building, as less land available means a greater price for what is available. There is little incentive for the government to change this

  • Where land is available, such as in Judea and Samaria (aka, the West Bank), there are very strict building restrictions

Many Jews from abroad are also buying in Israel for various reasons, increasing that demand:

  • Many have a dream to make aliya in the future, and so they buy a home as a first step

  • They want a holiday home on the beach or in Jerusalem

  • They have children living in Israel and want to be able to visit them without staying with them

  • Anti-Semitism and economic uncertainty is encouraging Jews from countries such as England, France and even the US to buy in Israel

  • Israel has proven to be a good investment

Of course, house prices can go down, but even if they do dip for a few years, they always go up in the long term. So, unless you are planning to sell to make a quick profit, houses are generally a good and safe investment.

And I’m still yet to meet the person who regrets buying in Israel.

If are considering buying in Israel, we would love to talk the issues over with you. WhatsApp us today.

Moshe +972-54-767-5106

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