The experts identified the most promising cities for investment in residential property are those where housing prices will rise the most significant rate.
According to a study conducted by Deloitte Brightman Almagor Zohar, the most promising in this respect is the city of Rehovot near Tel Aviv. He spoke for 25% of the professionals of the real estate market, participated in the survey. The second and third places were taken by Nes Ziona (23%) and Haifa (21%). In favor of Tel Aviv voted only 11% of respondents.
In addition, 41% of developers believe that housing will continue to go up in 2011, while 45% believe that prices will stabilize, reports Globes.
Israel is currently one of the world leader in terms of higher prices for residential buildings. The Government is trying to stimulate construction activity to increase housing supply and, thereby, reduce its cost. Recently, it introduced a rebate for owners of land to buy about 170 acres of private land on which can then be constructed 50-60 thousand residential properties.
Prices fueled not only a deficit plots for development, but also an active investor interest. The banks, encouraged by the demand for housing, not in a hurry to raise rates on mortgages, even though raising the base interest rate on loans from 0.5% to 2%. Moreover, according to the Bank of Israel in October, the average rate on a mortgage has fallen to historic lows - 2,18%.
This situation is cause for concern in other countries. For example, an authoritative American edition New York Observer reported that Israel might happen a price collapse - just as before in Dubai, where the cost of housing in the emirate has fallen by half.