The State of Israel will go to the fifth election in three years - something that could turn out to be a severe blow to the already high cost of living in Israel.
To this must be added, of course, the cost of the election itself, which is estimated at two to three billion shekels - loss of a working day for the economy, the budget of the election committee, and more.
The real estate market, which has only just begun to show signs of moderation, may return to a jump in apartment prices. High real estate prices are one of the main reasons for the high cost of living in Israel - whether it is rent or the monthly mortgage repayment.
Real estate prices may skyrocket, Photo: Dudu Greenspan
Data released in recent months in the housing market point to early signs of a moderation in the rate of price increases, but as mentioned this optimistic picture may change rapidly as political uncertainty increases, and the system enters another round or two of elections.
The real estate industry is considered to be particularly sensitive to political instability, as real estate developers, investors and financiers need certainty when it comes to making investment decisions.
When market conditions in the industry - such as the level of purchase tax, the entry into force of the Sale Law or the repeal of NPA 38 - change frequently, and the ministers of finance and housing change every few months, this certainty decreases.
"In the current situation between the blocs, it is not certain that one election will be enough to form a government. The uncertainty in the case of an election will undoubtedly have a negative effect on housing prices. Therefore, elections seem like the worst situation the real estate market can expect, unless a system The election will take place soon and a stable government will be formed at lightning speed - something that can happen, but not in the State of Israel, "estimates the finance director of the real estate financing company Ruby Capital and former rating director Eran Heimer in a conversation with Israel Today.
Tent protest meanwhile picks up speed, Photo: Michelle dot com
Beyond real estate prices, it should be noted that Israel, like the rest of the world, is at the height of the wave of price increases, against the background of the surge in energy and commodity prices. And it is doubtful whether the transitional government will be able to extend the decision legally - since it is an election campaign.
The expectation is that for now, oil prices will continue to soar against the backdrop of the ongoing war between Russia and Ukraine - so that the price of fuel may continue to soar without the government being able to intervene.
The price of fuel also has a decisive effect on the cost of living, it affects not only the transportation expenses of households, but also the prices of flights and various expenses of businesses - which pass them on to consumers.
As a result, the price level in the economy may worsen as a result of another election campaign.
Worse, the government has not yet approved the increase in the minimum wage, which still remains at the level of NIS 5,300 per month - a small amount in light of the wave of price increases of the past six months.
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