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Izzy Leizerowitz |
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17 December, 2023 |
Israel Real Estate Market Update - December 2023
In light of the current situation in Israel, many of you have inquired about the outlook for the real estate market in the coming six months. I want to share my insights with you, taking into consideration the ongoing conflict and its impact on our nation.
First and foremost, our hearts go out to the innocent individuals and soldiers directly affected by this conflict. We extend our deepest condolences to their families and wish a speedy recovery to all the wounded. Our thoughts are with the brave IDF soldiers, security forces, and dedicated rescue teams working tirelessly to ensure our nation's safety.
Amid these challenging times, questions arise about the optimal timing for property investments, whether for residence or future Aliyah. Here's what I've observed:
Aliyah and Global Anti-Semitism: There's a growing global concern about anti-Semitism, leading to a potential wave of Aliyah (immigration to Israel) or interest in purchasing property with future Aliyah plans in mind.
Construction Delays and Apartment Shortage: Construction projects are facing delays due to the reliance on Arab workers. Developers are exploring contingency plans to employ non-Arab workers, but this has led to more project delays. Consequently, there will be fewer new apartments available in the coming years, exacerbating the existing 50,000-apartment shortage.
Favorable Prices for Buyers: Prices have seen a 1-2% decrease over the previous year, favoring buyers. However, post-war pent-up demand is expected to drive prices back up, especially for apartments built less than 15 years ago.
Cash as a Strategic Asset: With rising mortgage rates and longer approval times, buyers with available cash are closing transactions swiftly, often within three weeks. Some buyers are flying in, making purchases, and returning home. They are also seizing the opportunity to choose from the best available properties.
Innovative Investment Opportunities: Developers are offering projects where you can buy land with future building rights as an investment. While completion may take six years, the cost savings can exceed 30% compared to buying a completed apartment at the end of the project. This option provides flexibility for moving in or resale.
In summary, while conducting real estate business during a war may raise ethical considerations, it's essential to understand that the timing of your investment can significantly impact your financial well-being. As demand rises and inventory decreases post-war, prices are likely to follow suit. If the current circumstances offer you a better opportunity to save money and invest in your future in Israel, it may make sense to act now.
Let us remain sensitive to the situation while also recognizing the potential financial benefits that come with strategic real estate decisions.
And as a reminder, as you navigate the dynamic rental market in Israel, seeking a cozy short-term vacation home or a long-term residential solution, a short-term or long-term rental property, or homeownership with an exclusive turn-key homeowner package, Keter Advisors will guide you through every step. As a recognized member of Israel's Association of National Real Estate Brokers and a licensed entity, we uphold the highest standards of professionalism. We specialize in matching our clients with the perfect rental and homeownership properties that align with their specific needs, ensuring a seamless process from start to finish. Trust us to elevate your rental experience in Israel, offering hassle-free solutions and transforming your rental property aspirations into tangible realities. Contact us today for a personalized rental property consultation.
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