The real estate market in Israel has long been considered one of the most dynamic and expensive in the world. However, in recent years, purchasing an apartment has become an even more difficult task, raising questions among many buyers: what is happening in the market and how to adapt to new realities?
Rising real estate prices
One of the main reasons making it difficult to buy a home is the constant rise in prices. According to the Israeli Central Bureau of Statistics, over the past few years the average cost of an apartment has increased by tens of percent. In cities such as Tel Aviv, Jerusalem and Herzliya, housing has become virtually unaffordable for the middle class.
Reasons for growth:
- Limited supply: there is not enough land for the construction of new facilities, especially in the central part of the country.
- Demand exceeds supply: high birth rates and an increase in the number of repatriates stimulate the market.
- Economic stability: Israel remains attractive to foreign investors, which also raises prices.
Tightening mortgage terms
For many families, purchasing a home is only possible with the help of a mortgage. However, banks in Israel are gradually tightening the conditions for obtaining it.
- Increasing Interest Rates: Base lending rates have risen over the past year in line with changes in the global economy.
- Increased down payment: Buyers now require more of their own funds to obtain a loan.
- Stringent income checks: Banks pay more attention to the stability and source of income of applicants.
Government programs: assistance or bureaucracy?
In response to rising prices, the Israeli government has initiated several buyer support programs, such as New Resident Price. However, their effectiveness is often criticized.
- The number of apartments available on preferential terms is limited.
- Programs often cover peripheral areas, which does not always meet the needs of buyers.
- Complex bureaucracy and high requirements for participants limit access to such opportunities.
Impact on population
Rising housing prices have led to several notable trends:
- Shift in demand to regions: More families are considering buying property in cities such as Be'er Sheva, Kiryat Shmona or Ashkelon.
- Popularity of renting: many are postponing the purchase of a home, choosing long-term rent.
- Decreased living standards: families are forced to take out large loans, reducing expenses for other needs.
What should a buyer do?
For those planning to purchase a home, there are several recommendations:
- Analyze the market: monitor prices and trends in different regions.
- Study government programs: you may qualify for one of them.
- Turn to the professionals: realtors and mortgage consultants can help you save time and money.
- Consider alternatives: Renting or buying a home outside the central part of the country may be a good option.
Buying an apartment second hand in Israel has indeed become more difficult, but this does not make the task impossible. Careful planning, expert help and a willingness to compromise will help you find the optimal solution even in a growing market.