In 2011 in Israel, waiting for a sharp fall in house prices

11.01.2011 00:05
Real Estate Market Analysis | In 2011 in Israel, waiting for a sharp fall in house prices Soap bubble - is in Israel today the price of local real estate, which reached almost incredible heights. Traditionally, the Holy Land is almost constructed small-sized housing.

Most Israelis live in three-four-room apartments. But only in Jerusalem houses are equipped with central heating. It is clear that the Middle East due to climate walls of the houses are not insulated and double glazing are not inserted. Nevertheless, the price of Israeli apartment with utilities, not complicated by severe climatic conditions, are quite comparable, for example, with Moscow. Three bedroom apartment on the periphery is not a prestigious area costs an average of 800,000 shekels (about 230 thousand dollars). For odnushku in Tel Aviv, overlooking the sea mediators are asked to 880,000 shekels. Five-room apartment in Nes Ziona, a town half an hour from Tel Aviv, worth 1.7 million shekels. Note that the average wage of Israeli workers - 8,397 shekels.

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Not surprisingly, the number of apartment transactions compared to last year declined by about 25 percent. According to Olga Khalatnikov, employee of one of Jerusalem's mediation apartments, high prices for apartments do not reflect the real cost of housing. "Inflated prices are sure to burst, - says Olga. - I think that until the spring, they will not last." President of the Association of Israeli contractors (IPR) Nissim Bovlil believes that prices crawl down as soon as the government will increase the land area under construction.

Executive Director of the IPR Yossi Gordon calls another reason to retain high real estate prices in Israel. According to him, "the lack of construction workers and the government's decision to reduce the number of" guest workers "who are legally allowed to work in the country - the reasons for which prices have not yet reduced. Land Management has already received from relevant government agencies to provide permission for building large tracts of land. "As soon as the price of buying a home will start to decline - Khalatnikov clarifies the situation - that homeowners wishing not to miscalculate, will begin selling an apartment, and as a consequence, the market for rented apartments will decrease and thus their prices rise."

RIA Novosti
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