The risk of a bubble in the housing market as Israel maintained

20.12.2011 10:00
Articles about real estate | The risk of a bubble in the housing market as Israel maintained This is the conclusion of an international organization experts OESR.Po their opinion, the Israeli economy is still on the decline due to the second wave of financial crisis and regional geopolitical tensions.

As the Jerusalem Post with reference to the OECD report, growth in housing prices in Israel are reduced, and in some areas, higher prices could stop altogether. According to experts, the real estate market is still poised on the brink of a housing crisis. However, the ratio of house prices and rents have not yet reached a critical point.

Related article: Property in Britain for ten years has risen in price four-fold

OECD experts have advised the Israeli authorities to establish an independent sovereign wealth fund, which will allow better spending the profits from the sale of real estate. Stomost housing in Israel is still low. According to analysts, the growth of the bubble can be prevented by further tightening of credit conditions and the accelerated development of new land.

Recall that, by 2020, Israel intends to reduce public debt to 60% of GDP. To prevent an increase in the budget deficit, the government will likely have to abandon the planned reduction in corporate taxes and reducing the top income tax bracket for individuals. Economists have already recommended the authorities to tax reform to raise environmental taxes and VAT.

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