CLOSE X

Register - if you don't have an account

Yes! Sign me up for Global Property Guide's fortnightly email newsletter.


Login - for registered users

Forgot Password?
Explore destinations
continent map couldn't be loaded Pacific Europe & Russia North America Latin America Asia Africa Middle East Caribbean

 



Investment Property News


My company
Global Property Guide

ON GPG


Israel's house prices under pressure

Oct 17, 2017 | 0 Comment(s)


Trend: house prices down 1.93% y-o-y in Q2 2017
During the latest quarter house prices fell by 3.8% q-o-q (4.3% in real terms). Center and Jerusalem Periphery Towns saw the highest price increase during the year to Q2 2017, with prices rising by 9.3%. 
 
Analysis: house prices are being pushed down by higher interest rates.  The Israeli economy is thriving.  Israel’s unemployment rate fell to a record low of 4.1% in July 2017, according to the Central Bureau of Statistics (CBS). The country’s unemployment rate has been declining since 2003.  Mortgage interest rates have risen over 2 years to 3.71%, from 2.21%.  There is also tighter bank regulation, and increases in purchase tax and the taxation of 3rd apartments. against a background of political disquiet about house prices.
 
Rents, rental yields: yields in Tel Aviv are very low at 2.71%
Tel Aviv apartments are expensive, at around $12,742 per sq. m.
 
Israel: city centre apartment, buying price, monthly rent (120 sq.m.) 
   Buying price  Rent per month  Yield
 Tel Aviv - Yafo   $1,529,040  $3,274  2.57%
 
Recent news.  All the news is good. The economy is expected to expand by 3.4% this year, after growing by 4% in 2016, 2.5% in 2015, and 3.2% in 2014, according to the BOI.
 
Wages were up 4.1% y-o-y in May 2017, according to the CBS.  Inflation was -0.7% in July.  In 2016, the country recorded a budget deficit of just 2.1% of GDP – the smallest deficit since 2008, according to the Finance Ministry. 





PROPERTY RECOMMENDATIONS

 
Download free property reports from international research houses

Our Newsletter

 
Fortnightly updates from the global property arena directly to your inbox.

Manage subscriptions