In the short and medium term, there are more factors that support the fall in rental rates in Israel than factors that support their rise. First, as the Bank of Israel points out, the rental apartments for rent to tourists are vacant and are now being added to local tenants. In addition, many young people in university cities returned to their cities of origin and vacated apartments for study and work - two areas that were recently disabled. And if all of this is not enough, the reduction of household income is another factor in the decline in demand and price.   

"Price to the buyer" distorted the market

The real estate sector for sale is more complex, but even now there are seemingly more factors that support the decline in prices than those supporting their rise. The rise in prices supports the fact that there is a continuing decline in the pace of construction starts. "Price per user" distorted the market and increased supply in different regions, which do not overlap with demand areas. It is quite possible that the global epidemic and Israel's good coping with it will be another encouraging factor for the rise of Jews from Europe and America - which may support the rise in demand and price. But against the fact that mortgages have risen and household incomes have shrunk, prices will support a near-term decline.