Housing: The price of real estate will only continue to rise "
Housing in Israel has become unattainable.
Housing prices have already risen by about 10%, and according to experts, they are expected to rise much more.
According to Haim Mesilati, chairman of the Bureau of Real Estate Appraisers, “The government housing plan presented this year is in the right direction, but does not yet have operational measures to create new housing units.
Government decision-makers must understand that the Israeli real estate market is in a state of emergency, and that it requires an emergency plan that includes revolutionary measures to significantly increase the supply of apartments in the market, otherwise we will find ourselves in a problematic, catastrophic situation in a year or two. A thousand apartments on the market, and a decrease in supply is a real danger to the real estate industry.
"The Israeli real estate market is in a state of emergency", Photo: Coco
Dror Ohav Zion, the CEO and owner of the real estate marketing company "Dera", which markets dozens of projects throughout the country, also estimates that apartments will become more expensive.
According to him, "Housing prices in Israel have jumped by more than 10% in the past year, according to the CBS, and I estimate that next year they will rise by 5% -10%.
The reasons for this are the winning prices in the state land auctions in recent quarters, which reflect a 10% -20% increase in apartment prices.
The great demand for land available for construction and the relatively slow pace of land marketing of the country are causing a spike in land prices.
"Also, although the state increased the pace of land marketing for construction in 2021, it will be a long time before the housing units reach the market."
Shopping Cart: Sweet in the mouth, bitter in the bank account
After the taxation of the disposable utensils and the jump in prices dramatically, it's the turn of taxation on sugary drinks, which will also push up prices.
The Ministry of Health has decided to promote a healthy lifestyle by taxing sugary drinks and juices, so that the tax added to beverages is an additional shekel for every liter of sweet drink and 70 cents for every liter of natural juice or drink with sugar substitutes.
Those who consume these drinks will feel well the taxation in this category.
For example, a standard 1.5-liter Coca-Cola bottle will cost 34% after tax, plus VAT on family packages, and will cost NIS 8.06 instead of NIS 6. Six Cola Zero packages will increase by 26%, from NIS 35.9 to NIS 45.07 A 1.5 liter orange soft drink will increase by 44%, from NIS 4.7 to NIS 6.76.
Sugary drinks in a supermarket in Israel, Photo: Ami Shumen
The dairy products under supervision, which are basic dairy products, are also on the way to rising prices.
The summary of the discussions between the inter-ministerial price committee of the Ministry of Finance and the Ministry of Agriculture shows that the price of dairy products that are under the price control order should increase by 8.76% -3.36%.
It should be noted that the decision is currently in the hands of the ministers.
As for the major food companies, Osem announced this week that it will raise the prices of hundreds of the company’s products by an average of 4.6%.
This is probably the first swallow on the way for more food companies, which will join the rising price trend this year.
Household: We will spend more on property taxes and electricity
Electricity and property tax bills are considered high payments, and from now on they will be higher.
The IEC recently published a public hearing regarding the update of electricity tariffs for 2022. According to the hearing, the total tariff for a representative domestic consumer will increase by about 4.9%.
The tariff is expected to take effect on February 1, 2022. This, after a final decision has been made.
According to the Electricity Authority, the main cause of the increase in the tariff is the global coal price, which has soared by more than 100% in the past year.
IEC, Photo: Yehoshua Yosef
The Electricity Authority also noted that "Today, about 23% of total economic production is made using coal. However, from the next year the rate of production in coal is expected to decrease gradually, until the complete cessation of routine use in 2026. The tariff for 2022 already represents a reduction of about 20% of the amount of coal used to generate electricity in relation to coal consumption in the past year. "Bring a further increase in the seller's cost."
Another account that will reach you at home at a higher rate is the property tax account.
The property tax update rate was set in May 2021 for 2022 and stands at 1.92%.
Property tax rates are updated each year according to the average of the consumer price index and the wage index in the public sector.
Car: More traffic jams - and more payments
Due to the lack of public transportation solutions, many in the State of Israel own vehicles.
These will have to pay a higher cost of car insurance this year.
According to Shai Sadeh, chairman of the elementary committee at the Bureau of Insurance Agents, "In the world of car insurance, unlike other things we know and see in the headlines about the rise in prices, there will probably be a rise in price in 2022, but there should be reservations.
The automotive world as well as many worlds, including food and construction, is affected by the supply chain abroad. The fact that there is a global shortage of spare parts has another effect - car thefts are rising, which is making the world of car insurance more expensive.
Traffic jam in Ayalon lanes (archive), Photo: Gideon Markovich
"I reserve the right to say that in the field of car insurance, insurance is the biggest influence on the profitability and income of insurance companies and therefore the competition is very intense, which will lead them to take a moderate increase, if any, because no company wants to lose market share to competitors. That is, insurance companies are likely to raise rates, but in moderation and by a few percent. In terms of the world of compulsory insurance, there is no vehicle that does not move without compulsory insurance. ".
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