The global real estate industry is reaching for the sky, and new figures state that 2010 broke new records for skyscrapers,4 skyscrapers over 400 meters high were completed in 2010 worldwide, taking the first, fourth, seventh, and ninth places as the world's tallest buildings. There are now 12 skyscrapers over 400 meters high in the world.
Israel has only one building that qualifies as a skyscraper (over 200 meters high) - the Moshe Aviv Tower in Ramat Gan, which was completed in 2000. Despite all the construction going on, and the highly publicized tower, Israel is not taking its place in the world of skyscrapers.The ostensibly tall towers that we see in Israel are dwarfs compared with the skyscrapers under construction in the world today.Israel has the know-how to build skyscrapers , however, few developers want to build skyscrapers in Israel. The problem is that a developer who wants to build a skyscraper faces opposition from the Israel Airports Authority and other statutory bodies, which strangle such initiatives. Israeli citizens will therefore continue to look enviously at skyscraper construction around the world, in ostensibly Third World countries, and will only be left with the option of visiting these skyscrapers as tourists.Since skyscrapers are an excellent solution to a shortage of land( which is growing worse in Israel), they ought to be rising here,but...Israel's real estate market cannot cope with skyscrapers. First, the higher a building the higher the management and maintenance costs, rendering such buildings unsuitable for residences for most of the population,only the very welthy can afford it.Secondly, tall buildings are more suited to new neighborhoods where residents are less worried about saving their vistas, removing the problem of mass objections against the construction of high-rises in older neighborhoods.
Wednesday, March 23, 2011
Tuesday, March 15, 2011
Netanyahu looks to drastic housing measures
"We are raising entire generations who live with their parents. What's next? To
live with grandma and grandpa?"
Prime Minister Benjamin Netanyahu will submit to the cabinet a new plan aimed at dealing with the housing shortage. The plan includes the construction of thousands of housing units nationwide over the next 18 months.
Netanyahu said"I have no illusions,there will be objections...". Netanyahu added, "We must take drastic action. I am determined to undertake this reform. We don’t have years. I am sick of waiting. We won't wait any more!"
Under Netanyahu's plan, national housing commissions will be established to bypass the bureaucracy of local and regional planning and building commissions, and will concentrate all decisions as a one-stop-shop.
The new commissions will be set up for 18-month periods. They are intended to deal with the housing shortage, which currently stands at 100,000 apartments. The reform was formulated together with Minister of Finance Yuval Steinitz and Minister of Housing and Construction Ariel Atias. It will apply only to apartments in the housing starts market above a certain height , which has not yet been decided . it will apply nationwide also including high demand areas.
"We must close the gaps," declared Netanyahu. "A combination of reforms at the Israel Land Administration and a road bypassing the planning commissions is the only way to deal with the housing shortage."
live with grandma and grandpa?"
Prime Minister Benjamin Netanyahu will submit to the cabinet a new plan aimed at dealing with the housing shortage. The plan includes the construction of thousands of housing units nationwide over the next 18 months.
Netanyahu said"I have no illusions,there will be objections...". Netanyahu added, "We must take drastic action. I am determined to undertake this reform. We don’t have years. I am sick of waiting. We won't wait any more!"
Under Netanyahu's plan, national housing commissions will be established to bypass the bureaucracy of local and regional planning and building commissions, and will concentrate all decisions as a one-stop-shop.
The new commissions will be set up for 18-month periods. They are intended to deal with the housing shortage, which currently stands at 100,000 apartments. The reform was formulated together with Minister of Finance Yuval Steinitz and Minister of Housing and Construction Ariel Atias. It will apply only to apartments in the housing starts market above a certain height , which has not yet been decided . it will apply nationwide also including high demand areas.
"We must close the gaps," declared Netanyahu. "A combination of reforms at the Israel Land Administration and a road bypassing the planning commissions is the only way to deal with the housing shortage."
Monday, February 28, 2011
140,000 empty apartments in Israel
The government is now working on a plan to tax owners of empty apartments.
The Central Bureau of Statistics reports that the number of empty apartments in Israel rose from 97,404 in 2000 to 140,300 in 2009(a 44% increase).
Occupation of even some of these apartments would greatly boost the housing supply and dramatically narrow the demand/supply gap.An empty apartment is defined as an apartment that is not permanently occupied for any reason, for example because it has been purchased by a foreign resident, has been transferred to heirs and is subject to an ownership dispute, is a holiday apartments, or has been sealed or abandoned, or is in ruins.The government is now working on a plan to tax owners of empty apartments, in order to render it not worthwhile to keep them in that condition. It remains to be seen if this will bring homes onto the market and lower prices.
The Central Bureau of Statistics reports that the number of empty apartments in Israel rose from 97,404 in 2000 to 140,300 in 2009(a 44% increase).
Occupation of even some of these apartments would greatly boost the housing supply and dramatically narrow the demand/supply gap.An empty apartment is defined as an apartment that is not permanently occupied for any reason, for example because it has been purchased by a foreign resident, has been transferred to heirs and is subject to an ownership dispute, is a holiday apartments, or has been sealed or abandoned, or is in ruins.The government is now working on a plan to tax owners of empty apartments, in order to render it not worthwhile to keep them in that condition. It remains to be seen if this will bring homes onto the market and lower prices.
Monday, February 21, 2011
Finance Commitee: Raise 1st home purchase tax threshold to NIS 1.6m
Most apartments in high demand areas cost more than NIS 1.2 million.
Knesset Finance Committee chairman MK Moshe Gafni (United Torah Judaism) told the government to raise the purchase tax threshold on a first home to NIS 1.6 million from the current NIS 1,139,000. He cited the fact that most apartments in high demand areas cost more than NIS 1.2 million. .
Ministry of Finance housing coordinator Reuven Kogan said that widening the purchase tax brackets and raising the threshold would affect tax revenuesand said that the median home price was NIS 865,000, so there was no genuine need to raise the tax threshold
. He further stated that, in 2010, 67% of buyers of a first home were exempt from the purchase tax, and that if the threshold were raised to NIS 1.4 million, the exemption would apply to 90% of buyers of first homes.
Knesset Finance Committee chairman MK Moshe Gafni (United Torah Judaism) told the government to raise the purchase tax threshold on a first home to NIS 1.6 million from the current NIS 1,139,000. He cited the fact that most apartments in high demand areas cost more than NIS 1.2 million. .
Ministry of Finance housing coordinator Reuven Kogan said that widening the purchase tax brackets and raising the threshold would affect tax revenuesand said that the median home price was NIS 865,000, so there was no genuine need to raise the tax threshold
. He further stated that, in 2010, 67% of buyers of a first home were exempt from the purchase tax, and that if the threshold were raised to NIS 1.4 million, the exemption would apply to 90% of buyers of first homes.
Consumer Confidence Index points to strong housing demand
11.6% of respondents in the January survey are interested in buying an apartment in the next six months, up from 7.8% in December.
11.6% of respondents in the Consumer Confidence Index, compiled by Globes Research and Price Waterhouse Coopers CPAs Israel, for January 2011 say that they are interested in buying an apartment in next six months, up from 7.8% of respondents in December 2010. This is the largest monthly increase since 2009, and indicates the highest interest in buying a home since early 2010.
11.6% of respondents in the Consumer Confidence Index, compiled by Globes Research and Price Waterhouse Coopers CPAs Israel, for January 2011 say that they are interested in buying an apartment in next six months, up from 7.8% of respondents in December 2010. This is the largest monthly increase since 2009, and indicates the highest interest in buying a home since early 2010.
Tuesday, February 8, 2011
Housing demand up 13% in December
New home sales rose 10% in 2010.
Housing demand rose 13% in December 2010, compared with November of the same year, the Central Bureau of Statistics in Israel reported today,
21,498 new homes (both privately and publicly built) were sold in 2010, 10% more than the 19,975 new homes sold in 2009.
Petah Tikva was the city with the highest demand for new homes in 2010, at 2,453 apartments, of which 2,268 were sold. It was followed by Jerusalem, Tel Aviv, and Ashkelon (where sales almost doubled compared with 2009), Netanya, Rishon LeZion, Kfar Saba, Ashdod, Rehovot, and Beersheva.
Housing demand rose 13% in December 2010, compared with November of the same year, the Central Bureau of Statistics in Israel reported today,
21,498 new homes (both privately and publicly built) were sold in 2010, 10% more than the 19,975 new homes sold in 2009.
Petah Tikva was the city with the highest demand for new homes in 2010, at 2,453 apartments, of which 2,268 were sold. It was followed by Jerusalem, Tel Aviv, and Ashkelon (where sales almost doubled compared with 2009), Netanya, Rishon LeZion, Kfar Saba, Ashdod, Rehovot, and Beersheva.
Sunday, January 30, 2011
Bank Leumi is predicting that home prices in Israel, will rise by 5 to 10% in 2011
They claim that in spite of efforts to increase the supply of apartments, the bank believes that demand will still outstrip supply in the near future.
Furthermore, the bank expects the inventory of homes for sale to remain low and so will interest rates,this will reflect further price rises, although at a much more moderate rate than in the last few years.
Furthermore, the bank expects the inventory of homes for sale to remain low and so will interest rates,this will reflect further price rises, although at a much more moderate rate than in the last few years.
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