Magis Global –


December 4, 2013

Real Estate Market

Category: General – Tags: , – admin – 7:13 pm

What will happen with prices for apartments in Israel? For some it is said, the million dollar question. Some say that the prices are prohibitively high and would soon fall, others – predict further price increases. Let us turn to the basic concepts that affect the price of any commodity – supply and demand. Population growth and fertility rates in Israel are high. A little land. And the land on which Jews are allowed to build even smaller. That is, for now the demand for housing in Israel far exceeds supply. Press is full of expert opinions and searchlights politicians who promise a quick approximation of a bright future, and lower prices.

I think chitelyam aged 35 + is something napomnaet. Obeschayut allocate land. But not enough. Some land in the center of the country is isolated, but not residential, and industrial buildings under construction, usually to institutions Hi Tek. Surrounding cities-examples – Tel Aviv-Jaffa and Rishon Lezion. The question on intelligence: What effect will the construction companies with highly-paid professionals in these and so is not cheap cities? Another intersnyh widely publicized measure of 'lower' prices for apartments – reduced taxes for contractors who will build houses for rent, do not understand that! That is, build them cheaper, but still remain in the building ownership. A construction loan will pay for the tenants.

Proponents of this solution argue that there will be more apartments for rent, and, accordingly, rent will be cheaper. Logically would like. But here we must note that today the Oklo 50% of buyers in the housing market – it's investors, that is People who buy apartments for the purpose of renting.

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