Friedman.
Expect a price increase (photo: eclipse media)
Against the background of the political and social crisis in the background, the question arises, what will happen to housing prices in Israel?
At the Real Estate Summit for Urban Renewal of the Real Estate Center, the CEO of Bank Leumi said that housing prices are expected to rise as early as next year.
"Until three months ago, the housing price index indicated an annual increase of about 20% - a record of -12 years.
In the last three months, apartment prices have risen cumulatively at an annual rate of only about 2%.
The trend of moderation in market performance stems from both the interest rate environment and the psychology of the public's expectation of price drops in light of the macro data.
The ongoing slowdown in housing market activity may make it difficult for a renewed increase in construction starts in the coming quarters.
Since the demand for apartments will probably continue to be higher than the supply, it can be estimated that already at the beginning of next year the prices of the apartments may rise again."
"Stop the legislation"
In his words, Friedman also referred to the political crisis and called for talks between the parties and the freezing of legislation.
"We are in a complex morning, after a complex night - for the State of Israel. I agree with the call of the President of the State - we must take care to prevent a rift in the nation, freeze the legislation and hold negotiations. I say these things not with a political connotation, but out of concern for the state and the Israeli economy. Because we do not have another country".
Referring to the actions that the government must take, Friedman said, "The constant gap that exists in Israel between demand and supply must be solved with a fundamental and sustainable solution, and for this purpose it is necessary to consider and mobilize all the relevant factors together - the government must declare the housing crisis as an emergency issue at the national level and formulate a long-term strategic plan range. Construction must be expanded both in the Negev and in the north, investing in essential infrastructure, shortening the bureaucratic procedures. A situation where the process of obtaining building permits takes an average of 4 years is intolerable, this cost is rolled into the pockets of the apartment buyers."
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