Monday, January 2, 2012
Shekel strengthens after interest rate decision
The Bank of Israel left the interest rate unchanged at 2.75% against analysts' expectations of a fall of 25 basis points. In addition, it cut its 2012 growth forecast to 2.8% from 3.2%, due to unstable global economic conditions resulting from the European debt crisis.
Friday, December 30, 2011
Auditor General Micha Lindenstrauss slammed the Housing Ministry on its conduct in "vacate-and-build" projects.
Atias said, "Even in projects marketed to one developer, there is huge bureaucracy for vacate-and-build. It takes 5-6 years for a project to come into effect. Residents incorporate to find a contract; we don’t decide on the contract, because this is people's property… In the final stage, when the contractor is chosen, the residents want to get more. This is a problem for the contractor. They think that they'll make the fortune of their lives from the project.
Atias further added : "It's hard to execute these projects in the periphery. As a result, the Negev and Galilee get screwed ,it's frustrating to see how the wheels of state don’t work. "Vacate-and-build" is a great idea that doesn’t work for solving the problem of old apartments and building affordable housing".
Atias further added : "It's hard to execute these projects in the periphery. As a result, the Negev and Galilee get screwed ,it's frustrating to see how the wheels of state don’t work. "Vacate-and-build" is a great idea that doesn’t work for solving the problem of old apartments and building affordable housing".
Sunday, November 27, 2011
Rents up 10% in two years
The summer's social protest had no effect on the trend.
The Central Bureau of Statistics in Israel reports that the percentage of renters rose from 27% of the population in 1995 to 34% in 2008. High home prices, and the fact that most Israelis prefer to live in the center of the country, have caused renting to become increasingly prevalent.
The low supply of homes, including rental homes, is driving up rents. Moreover, the current measure to temporarily exempt the sale of second apartments from the betterment tax, is inadvertently liable to aggravate the shortage of rental apartments by reducing the inventory of second apartments that are rented out by their investor/owners.
A further aggravation :the supply of public housing has fallen over the years as the result of government campaigns to sell these apartments to their tenants, whilst not building new ones.
The Central Bureau of Statistics in Israel reports that the percentage of renters rose from 27% of the population in 1995 to 34% in 2008. High home prices, and the fact that most Israelis prefer to live in the center of the country, have caused renting to become increasingly prevalent.
The low supply of homes, including rental homes, is driving up rents. Moreover, the current measure to temporarily exempt the sale of second apartments from the betterment tax, is inadvertently liable to aggravate the shortage of rental apartments by reducing the inventory of second apartments that are rented out by their investor/owners.
A further aggravation :the supply of public housing has fallen over the years as the result of government campaigns to sell these apartments to their tenants, whilst not building new ones.
Sunday, October 23, 2011
Housing Ministry to market land for 6,300 apartments
The new tenders bring the amount of land marketed to 26,000 apartments so far this year.
"Increasing the housing supply is the main tool available to us to ease the housing shortage and lower prices," said Minister of Housing and Construction Ariel Atias. The road is still long, and we must end the ten-year housing inventory shortage, but I am pleased that the housing shortage is beginning to ease and that our efforts of many years are bearing fruit."
Most of the new land will be marketed in the periphery, including Beersheva, Dimona, Yeruham in the south, and Kiryat Motzkin in the north. Lots will marketed for 1,700 apartments in Rosh Ha'Ayin and for 42 apartments in Rishon LeZion.
"Increasing the housing supply is the main tool available to us to ease the housing shortage and lower prices," said Minister of Housing and Construction Ariel Atias. The road is still long, and we must end the ten-year housing inventory shortage, but I am pleased that the housing shortage is beginning to ease and that our efforts of many years are bearing fruit."
Most of the new land will be marketed in the periphery, including Beersheva, Dimona, Yeruham in the south, and Kiryat Motzkin in the north. Lots will marketed for 1,700 apartments in Rosh Ha'Ayin and for 42 apartments in Rishon LeZion.
Wednesday, September 21, 2011
Conflict doesn’t hurt home prices long term
Conflict doesn’t hurt home prices long term, study finds
In Israel, war does not cool the real estate market.
Israel's assault on the Gaza Strip, Operation Cast Lead, lasted from 12/2008 through 1/2009.Once it was over, it took time for the real estate market to recover, there was a six-month slowdown., but once normalcy was restored, people rushed to buy apartments, and prices began to rise.
Between July and August 2006, all residents of northern Israel lived in air raid shelters, during the Second Lebanon War. It had an immediate impact on prices, but it had no long-term effect at all. Israelis are so used to conflicts that for them everything goes back to normal in just a few months.
In Israel, war does not cool the real estate market.
Israel's assault on the Gaza Strip, Operation Cast Lead, lasted from 12/2008 through 1/2009.Once it was over, it took time for the real estate market to recover, there was a six-month slowdown., but once normalcy was restored, people rushed to buy apartments, and prices began to rise.
Between July and August 2006, all residents of northern Israel lived in air raid shelters, during the Second Lebanon War. It had an immediate impact on prices, but it had no long-term effect at all. Israelis are so used to conflicts that for them everything goes back to normal in just a few months.
Governor of the Bank of Israel: Home prices could double in 5 years
Furthermore, He said that it was necessary to deal with the housing supply and bureaucracy.
"Why are we worried"?Stanley Fischer asked:" Because prices are rising by 16%, which means that prices will double within five years. This has to stop. The question is whether it will stop in a way that won't harm the economy,"
"Why are we worried"?Stanley Fischer asked:" Because prices are rising by 16%, which means that prices will double within five years. This has to stop. The question is whether it will stop in a way that won't harm the economy,"
Sunday, September 18, 2011
Who owns the land?
As much as 93 percent of the land in Israel is either owned or managed by the state is coming under increasing scrutiny as Israel’s population increases and real estate prices keep going up.
In order to keep up with Israel’s population growth and burgeoning real estate market, The Israel Land Administration has to release Tenders for land to companies, who will build new apartments. During the recent real estate boom in Israel, the ILA has not been releasing new land fast enough and at prices that are reasonable enough for Contractors to make money. Consequently, new apartments are not being built at a sufficient enough rate to keep up with demand. Additionally, the planning process in Israel is the most cumbersome in the Western World. Prime Minister Binyamin Netanyahu was quoted this past week as saying that “it takes five or more years to plan an apartment in Israel."
In order to keep up with Israel’s population growth and burgeoning real estate market, The Israel Land Administration has to release Tenders for land to companies, who will build new apartments. During the recent real estate boom in Israel, the ILA has not been releasing new land fast enough and at prices that are reasonable enough for Contractors to make money. Consequently, new apartments are not being built at a sufficient enough rate to keep up with demand. Additionally, the planning process in Israel is the most cumbersome in the Western World. Prime Minister Binyamin Netanyahu was quoted this past week as saying that “it takes five or more years to plan an apartment in Israel."
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