The price frenzy is also expressed in Israeli cities to uncontrollable and restrained peaks: the city of Modi'in increased at an unusual rate of about 30% in a quarter and about 40% in a year, no less than amazing data that clearly illustrates what is happening when the supply of apartments in a certain settlement is reduced dramatically.
Eilat also shows an unusual feature with a quarterly increase of about 16% and an annual increase of no less than 21%, probably as a result of the flood of investors who recognized an opportunity in the southern city due to the return of the world of tourism to full activity and on steroids.
It was in the big cities that relative solidity was recorded, with the city of Haifa, which had faltered for several quarters, once again becoming a sought-after destination for purchases and investments.
Price increases // Courtesy of Ohad Danos, real estate expert real estate appraiser, former chairman of the Chamber of Appraisers,
Surprising stability (0%) in the city of Tel Aviv-Yafo.
In Jerusalem a slight increase of 3%.
Other notable cities are Kfar Saba (+21% per year), Rehovot (+17% per year) and Ashkelon (+17% per year).
On the other hand, only Beer Sheva showed a minimal decrease in prices (-1% per year).
The CBS did indeed publish an annual increase of almost 18%, but from a spot check obtained by Real Estate Today according to calculations developed by the chief government appraiser, Ohad Danos, former chairman of the Chamber of Appraisers, it appears that in the second quarter of 2022 apartment prices continued to rise and this time in a way Dramatic. Both in relation to the previous quarter and in relation to the corresponding quarter last year. This, despite the continuation of the dramatic decrease in the volume of transactions, which is explained by the expectation of a drop in prices as a result of the beginning of interest rate increases by the Bank of Israel and the fact that some real estate investors have begun to realize their profits in the market.
"This is a confusing period in the real estate market, on the one hand a dramatic decrease in the number of transactions and on the other hand an equally dramatic increase in prices," states real estate expert Ohad Danos, "there seems to be a split trend among buyers. Some choose to wait today and test the market in light of interest rate increases, rate Inflation and the situation in the capital market and in front of them, others, who prefer to see the political instability and the lack of a comprehensive government plan for the industry, support the continuation of the trend of price increases.'
Ohad Danos, real estate appraiser, real estate expert, former chairman of the Chamber of Appraisers // Credit: Shahar Shirazi,
In the surveyed cities, an increase of 6.1% (nominal) was observed in the average price of apartments in the second quarter of 2022, compared to the previous quarter.
In the past year (compared to the corresponding quarter last year), a nominal average price increase of 12% was observed in the surveyed cities.
The president of the Boni Ha'aretz Association of Contractors, Raul Sargo, said: "Unfortunately, the government has not yet internalized that apartment prices will continue to rise as long as a policy of lotteries and various gimmicks is implemented that does not provide solutions for more than 90% of the public.
The only solution to dealing with the crisis is for the government to sell to contractors and developers all the land it can - land for over 300 thousand housing units it has.
The abundance of land is what will cause a sharp drop in prices.
As long as this is not done, apartment prices will continue to rise sharply and the apartment dream will continue to move away."
were we wrong
We will fix it!
If you found an error in the article, we would appreciate it if you shared it with us
