Izzy Leizerowitz

11 February, 2024

Why Now, (yes now) is the Perfect Time to Buy Properties In Israel

Israel's construction industry is currently at a pivotal moment for any potential real estate buyers: what many might think of as a dire situation is, in fact, a unique window of opportunity with long-term benefits. Here's why:

To be a successful real estate investor and maximize returns, you must master the art of strategic timing:
  • Buy when demand is low and everyone is leaving the market.
  • Sell when the demand is high and everyone wants to buy into the market.

Right now, everyone is wary of Israel's construction industry, but the government's active measures to address the labor shortage signal a forthcoming resolution. This is the perfect time to invest in Israel's construction and real estate industry by buying a new property in a project.

Let's extrapolate this elite investing move further:

Property Prices are Lower!
Demand in Israel's real estate market usually outstrips supply, making the region a hotbed for investors. However, the current economic slowdown due to the military conflict has slightly reduced the demand for property, offering an open opportunity for potential investors.

Another advantage of this demand reduction is its decreased property prices, offering a rare opportunity to invest in the industry at a lower entry point. So, the demand is not just low; investors will pay less than market value if they enter the real estate market now.

There is an Urgency for Resolution!
Israel is losing money because of the significant labor shortage in the construction industry, which is slowing down projects significantly.
  • At least 50% of the building sites are shuttered.
  • Those operational only have a 30% output of the standard rate.
  • The estimated loss is 2.4 billion NIS per week.
  • There is a potential 3% reduction in national GDP.

So, you see, there is a dire need to revive the nation's construction sector. The government of Israel is doing everything in its power to address the labor shortages so that construction resumes to full capacity.

This means that the construction delays are temporary! The key word here is TEMPORARY! This means that the construction industry will soon be active, moving the real estate market from its recovery to the expansion stage and soon into peak season.

And when this happens, property prices will surge as domestic and international pent-up demand floods the market. So, the time to buy is now when the prices are lower, competition is not stiff, and the potential for appreciation as the market moves back into expansion is high.

The Long-Term Benefits!
With the government's active measures to resolve the labor crisis and the construction sector's resilience, the industry is expected to bounce back stronger. This recovery will likely lead to rapid price appreciation, benefiting those who choose to invest during this transient adjustment period.

And as demand continues to grow, properties will have a long-term price appreciation that will produce long-term benefits for investors.

Conclusion: Make the Move for Opportunities - Wait for No One!
The message is clear for potential investors and homebuyers: the moment to act is now. The current landscape of Israel's construction industry, shaped by temporary challenges and robust government interventions, sets the stage for a powerful comeback.

Investing today means you're not just purchasing property but securing a stake in Israel's vibrant future. The confluence of lower prices, governmental support, and the strategic timing of market cycles creates a compelling case for investing in Israel's construction sector today.

As you look ahead, the industry's recovery and growth promise to revitalize the construction landscape and reward those with the foresight to invest during this pivotal moment. Let this be your opportunity to make a strategic investment that will pay dividends for years.

As you consider the unique investment landscape within Israel's burgeoning real estate market, whether you're eyeing an opportunity for a lucrative investment property, a commercial venture, or a personal residence tailored to your lifestyle, Keter Advisors stands ready to illuminate your path. As an esteemed Israel's Association of National Real Estate Brokers member and a fully certified agency, we commit to the pinnacle of professional excellence. Our expertise lies in curating a selection of investment and residential opportunities that precisely cater to your ambitions, facilitating a smooth journey from initial inquiry to final acquisition. Let Keter Advisors enhance your investment journey in Israel by providing comprehensive support and converting your real estate goals into successful ventures. Contact us today for a bespoke investment property consultation and embark on a rewarding journey with Keter Advisors.

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