Bernard Raskin, Re / Max CEO who predicted the trends last year, estimates: "In some of the high-priced areas, there will also be a double-digit rate" • On a price plan for your homeowner: "Hit most of the real estate market"

• Project for a price for a buyer // Photo: Ami Shuman

"Instead of building infrastructure for construction, the government has built an infrastructure for rising prices. Populist plans, such as the price per dweller, have contributed to creating a distorted real estate market and double the damage to the public: the public will pay more for the apartment to buy in the future and on the way to pay more for rental housing." Yesterday, Bernard Ruskin, CEO of RE / Max Israel, said at the annual press conference.

Ruskin added: "In 2020, I expect a single-digit percentage increase in some areas, even a double-digit increase."

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On the unique real estate market in the State of Israel, Raskin said: "The State of Israel is special in the Western world with high natural growth, the number of new immigrants on the rise in recent years and given the rising waves of anti-Semitism across Europe and the US, I expect a significant increase in demand in the coming years."

According to Raskin, "Entrepreneurs in Greece are building for Israeli investors. Israeli investors fleeing abroad are undermining the motivation of developers to start construction here. My colleague, Re / Max's franchisee in Greece, called with pleasure to thank me for our market presence there, "however, Raskin added," We have recently identified a trend indicating the return of Israeli investors who understand the high risk of investing in foreign countries. "

Re / Max CEO Bernard Raskin // Photo: Israel Cohen

"Decrease in construction starts"

The chain's chief executive has sharply criticized Finance Minister Moshe Kahlon's flagship program: "The cost to the consumer is responding to a small market segment, with most of the market being damaged by the plan. Expensive resources of entrepreneurs are directed to projects aimed at one market segment at the expense of another market segment.

"In previous years, we said the plan would lead to a decline in housing supply - and we did see a significant decline this year in construction starts. Instead of populist government intervention programs, in-depth care and a long-term solution focused on removing bureaucratic barriers, encouraging developers to build according to market needs, are needed. A trigger is necessary for an increase in construction starts, ”Raskin said.

Safed's surprise

At the 2019 press conference, Ruskin presented changes in house prices across the country, according to a large sample of the thousands of homes bought and sold online. The data shows that the chain has made NIS 5,013 billion in sales transactions and NIS 6,265 billion in sales. All in all, this is the sale and purchase of more than NIS 11.2 billion of assets, not including rentals. At the end of the press conference in late 2018, Ruskin correctly estimated that prices would be halted in cities like Afula, "because in cities where demand for low-cost per-user is not absorbed in the market, as is the case in demand areas in the center of the country."

The data from the network show that Safed surprised with significant price increases - 14.3% in 2-room apartments, 8.3% in 3-room apartments, 13.6% in 5-room apartments and 11.1% in cottages.

Tiberias also recorded significant increases of 10.4% in 3-room apartments, 10.9% in 4-rooms, 7.9% in 5-rooms, 15.4% in garden apartments. Carmel, Haifa, saw price increases of 8% in 3-room apartments, 3% in 4-rooms, 5.3% in 5-rooms.

Another surprise in 2019 was plowing, with 29% price increases in 3-room apartments, 2.6% in 4-rooms. Even in rental prices - the rental price of a 3-room apartment increased by 10%. In Afula, after price increases in 2018, prices fell by about 4% last year in apartments 3 and large apartments recorded sharper declines of 4.5%. Rental prices have fallen by about 10%, due to investor-owned price apartments purchased by renters.

In her room, prices rose by about 15% in 4-room apartments, while 3-room apartments rose by 12%. In Kfar Saba and Ra'anana, prices rose by about 5% in the large apartments.

In Jerusalem, prices of 14% were recorded in 4-room apartments in the Valley, in French Hill prices increased by 11.8%, in Kiryat Menahem by 20.8% and in Kiryat Hayovel by 5.3%.

In intelligence market a very strong rental market with significant increases. In 3-room apartments, there was a 25% increase, and in 4 rooms a 20% increase.