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Israeli real estate market thrives even with the country deep at war

Housing supply falls short of demand

This represents a 15% increase from the same period last year. The market is driven by a combination of factors, including a shortage of housing supply, high demand, and a growing economy.

The Housing Shortage

The shortage of housing supply is a major driver of the market’s growth. With the population growing at a rate of 2.5% per annum, the demand for housing is increasing. However, the supply of new apartments is not keeping pace. According to the Central Bureau of Statistics, the number of new apartments completed in 2023 was 12,000, which is less than half of the number of apartments sold in the same period.

The Rise of the Israeli Real Estate Market

The Israeli real estate market has experienced steady growth over the years, with some fluctuations.

The Allure of Real Estate in Israel

A Symbol of Security

For many Israelis, owning a home is a symbol of security and stability in an uncertain world. The country’s unique history, geography, and politics have created a real estate market that is both attractive and resilient.

This flexibility has led to a surge in demand for housing, particularly among first-time homebuyers.

The Rise of Real Estate Development Incentives

In recent years, the real estate market has experienced a significant shift, driven in part by the introduction of developer incentives. These incentives have made it possible for buyers to secure a property with a minimal initial payment, often with the balance due at occupancy, usually in three to five years.

Benefits for First-Time Homebuyers

  • Lower upfront costs
  • More flexible payment terms
  • Increased access to affordable housing

    • The introduction of developer incentives has been a game-changer for first-time homebuyers. With lower upfront costs, these buyers can now secure a property without breaking the bank. The more flexible payment terms also provide peace of mind, as buyers can plan their finances without the burden of a large upfront payment. Additionally, increased access to affordable housing has made it possible for more people to own their own homes.

    How Developer Incentives Work

    Developer incentives typically involve a combination of financial and non-financial benefits. These benefits can include:

  • Grants: Some developers offer grants to buyers, which can be used to cover a portion of the upfront costs. Low-interest loans: Developers may offer low-interest loans to buyers, which can help reduce the burden of monthly payments. Tax credits: Some developers offer tax credits to buyers, which can help reduce the buyer’s tax liability. * Free upgrades: Some developers offer free upgrades to buyers, such as appliances or flooring. These benefits can vary depending on the developer and the specific incentive program. However, they all work together to make real estate more accessible to buyers.

    The ongoing war in Ukraine has led to a significant increase in demand for housing in the country, as many people are seeking refuge from the conflict. This has resulted in a surge in housing prices, making it difficult for low-income families to afford homes.

    The Impact of Conflict on Real Estate Trends

    The ongoing conflict in Ukraine has had a profound impact on the country’s real estate market.

    Whether this boom will endure or adjust with the war’s progression remains an open question, but the demand for four walls and a secure home persists for now.

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