Investing in Israel’s residential property has recently been fairly profitable. Housing prices are growing. They have increased by 50% over the last 5 years.
The Israeli housing market is especially popular with Russians. They keep buying apartments even when they are overpriced.
Obviously, you can find a lot of websites offering you to purchase residential property in Israel. However, not all of those real estate agencies vary are reliable. Therefore, it is important to find those agencies that have been in the industry for a long time. They should be licensed and should value their image. How to find such real estate agencies? What are the criteria?
Israeli Real Estate Agencies
Israel is a country with highly developed legislation. There is little room for scammers, so they cannot exist for a long time. Therefore, one of the key factors is the number of years a certain agency has been in the industry. Israel is a small state in terms of territory.
Websites
Before the crisis, there were 11 000 real estate agencies in Israel. During the crisis, their amount increased. Obviously, the amount of corporate sites related to the Israeli housing market increased as well.
At this point, almost 100% of those agencies have websites. More clients start coming from the Internet these days. Therefore, a website is a useful tool in this business. A client can visit a website, look for the list of offers, chat with the company’s support team, read and post comments and so much more.
How To Avoid Overpayment?
In order to avoid overpayment, it is necessary to work with the industry’s leaders, which are companies that work in several niches, including, development, investment, maintenance etc. They offer their clients a full package of services, thereby helping them to obtain a mortgage loan if necessary, evaluating housing units, financial and legal consulting and so much more. Those companies are usually quick to adapt to legislation changes.
Experts On Israeli Housing Market
According to Global Property Guide, a section of Globes, a popular Israeli edition, the Israeli housing market was getting ready for a hard landing in late 2012. Housing prices should have keep declining within the next couple of months. However, this won’t the case.
After a weak rally, (19% over the period 1999-2007) the growth accelerated in 2008-2011. Therefore, most experts treated this rally as a price bubble in the Israeli housing market. There were 3 reasons for the growth: low interest rates, excessive demand and higher activity among various groups of buyers. As of late 2012, the average housing price was $284 941. Therefore, all those expectations of a housing market collapse looks logical.
However, there are different types of collapses. It would be wiser to speak about short-term price falls. There have been many of them over the last 20 years. Global Property Guide underlines that prices fell during times of political instability and insecurity connected with armed conflicts with the Arabs. The housing market of Tel-Aviv suffers most of all when Israel is at war. The bank of Israel reports that the demand for new residential property constantly increases. However, the actual sales volume accounts only for 50% of the overall demand because of the lack of available offers.
As for renting, rent prices have grown over the last 3 years because of the deficit.
There are still tensions with Palestine, Lebanon, Turkey and Iran. Obviously have a negative impact on the Israeli housing market. However, the Israeli economy still remains strong despite all the difficulties. It has survived the global crisis and keeps growing amid tensions and multiple external threats. Israel’s labor power is 100% efficient. It has been one of the world’s leaders in the IT and hi-tech industries.
Therefore, strategic prospects and advantages give us to understand that despite multiple negative factors, Israel’s housing market remains a good investment opportunity. Its residential property will always be in demand as the country keeps consolidating its position in the international arena.
