Wednesday, August 21, 2013

Booming mortgages

The mortgage market has been booming in the past year. If the rate of growth in the coming months resembles the rate in first half of the year, 2013 will see a record amount of new mortgages, in excess of NIS 50 billion.
The main factor driving the boom is the low interest rate, which the Bank of Israel itself has set. On one hand, the Bank of Israel is imposing restrictions on mortgages, while on the other hand, it is fueling mortgages with the low interest rate. Another factor contributing to the rise in mortgages is the VAT hike, which caused homebuyers to close deals before it came into effect. It seems that public is not waiting for government declarations about plans to lower home prices to materialize, because even if the government improves the situation in the real estate market, it will take a long time before the results of any measures taken will be seen.

Tnuva sells Beersheva site

Tnuva Food Industries has put up for sale its rights to the Beersheva wholesale market. The company has rights to half of the 17-dunam (4.25-acre) site, which has approved building rights for 44,000 square meters of office and residential space and 6,600 square meters of commercial space. In other words, Tnuva is selling all its rights to a lot zoned for 22,000 square meters of office and residential space and 3,300 square meters of commercial space.

Monday, January 28, 2013

In which group are you?


Bank of Israel divided the real estate buyers into three main groups:

One. First apartment loan - if a loan for the purchase of your first apartment. In this case the maximum financing rate will be 75%.

Two. Improved housing units - now the banks are not allowed to give mortgages over 70% for this group.

Three. Investors - in the case of buying a home for investment the financing rate will be 50%. The directive includes the purchase of foreign residents.

Bank of Israel hopes that the measures will not hurt too much the ability of young couples to buy their first apartment.

The directive enter into force on 01.11.2012.

Monday, January 7, 2013

Home prices in coastal cities


A study by the Gazit-Globe Real Estate Research Institute at the Interdisciplinary Center Herzliya found that home prices in coastal cities rose by 35-56% in 2007-11, with Ashdod leading the gain. Home prices rose by 39% in Tel Aviv in 2007-11 and by 74% in 2000-11.
The rise in home prices was reflected in the mortgage market. Bank of Israel data show a 65.2% of mortgages in January-November were taken for homes costing more than NIS 1.2 million, including 29% of mortgages for homes costing more than NIS 2 million.
The banks believe that the strong trends in the housing market will continue in 2013, although dramatic steps in the housing market, if any, by the new government could turn things around.

Wednesday, January 2, 2013

New home sales

Housing demand fell in November 2012 alongside a rise in new home sales. New home sales rose by 16% in November, compared with October. 
The Central Bureau of Statistics reports a 17% drop in demand for new apartments in November, compared with October. due to a 45% slump in new apartments not available for sale (homes built by the resident or by buyers groups, rental apartments, etc.)

Wednesday, November 28, 2012

The Lowest Shopping Center in the World

International real estate firm Bercleys today unveiled its plan to build a new mall in the area of the Dead Sea hotels at Ein Bokek. The single-story 10,000-square meter shopping center will cost NIS 200 million to build.

Wednesday, November 14, 2012

Investors stormed the apartments in the periphery

The real estate investments in August rose to 24% after the three previous months that stabilized at 23%. Preliminary data for September shows a further increase close to 26%. Due to a sharp increase of 20% for investors in Haifa, Tel Aviv area stands out with a sharp decline of 24% in the number of apartments purchased for investment in August.