How to save yourself $500 on your new home in Israel
The cost of a new home has soared to $2,000 a square foot in Israel, according to a new study by the Israel Housing and Construction Authority.
That’s up from $1,600 a square yard in January.
And it’s an increase that’s coming at a time when the economy is in a recession.
A year ago, the price of a home was around $1.5 million.
But this year it’s up to $3.5 billion.
The number of new units in Israel is up by 50 percent compared to the same period last year, according the Housing Ministry.
And that’s a lot of new housing, says the head of the association.
“In a country with so much housing, it is quite a burden to build,” says Yossi Golan, who heads the association that sets standards for Israeli housing.
But the cost of building new homes has also jumped.
“We need to invest in building more, not less,” he says.
The cost increase is a major factor behind the country’s recession, says Golan.
“Israel has one of the highest real estate costs in the world,” he adds.
Israel’s real estate prices have soared since the beginning of the financial crisis.
But some of the biggest jumpers are on the rental side, with prices up 60 percent since the end of 2014, according TOI.
The increase in prices has been caused by two things, says Dr. Ofer Rabin, director of the Institute for Housing Studies at Tel Aviv University.
One is the construction boom, which is fueled by new construction in many of Israel’s new cities, says Rabin.
In some areas, new construction is being carried out on existing land that was not previously used for construction.
“The other is the fact that the price is not being used for housing,” he explains.
The real estate market is also becoming more expensive in Israel due to the collapse of the housing bubble in the United States and a tightening of the Israeli labor market.
“At the same time, the housing market is growing and we are seeing a rise in the prices of apartments,” he continues.
The housing boom has created a shortage of housing, which has made it more expensive to rent.
According to the Israeli Association of Real Estate Boards, there are more than 200,000 vacancies in the housing sector, of which more than 80,000 are in the Tel Aviv region alone.
And many of those vacancies are in areas that have not experienced a bubble in rental prices.
“A shortage of supply and a lack of demand in the market have led to an increase in rents,” says Raffaello Pantucci, president of the Tel-Aviv Real Estate Board.
In order to keep prices stable, builders need to do more than just build homes.
“There are so many people out there who want to live here, and building a house is not the right solution,” says Pantucci.
“This is not a new problem, it’s the same as building a car or a boat.
There is a need to create a sustainable economy, and the housing crisis is the cause.”
To save on the housing price, there is a lot at stake.
“If the prices go up, then our children will not have the same opportunities,” says Gazel Ben-David, who lives in a four-bedroom apartment in Tel Aviv.
“When they get married and move to a bigger apartment, then we will lose everything.
They will have no one to call their own.”
In an effort to address the housing shortage, Israel is investing billions in the construction of affordable housing.
It also plans to expand a new network of affordable units to meet the growing need for housing.
The Israeli Housing Ministry is also launching a pilot program to buy and build 1,000 housing units in each of Tel Aviv’s five boroughs.
That program is being spearheaded by the housing association, which will purchase apartments and build them on vacant land.
The first phase of the program is expected to be completed by 2020.
“Our plan is to build more than 1,500 units,” says Ben-Naimi.
“That is not enough, but we are working to build even more.
We have plans to build 3,000 units.
If the plan is approved, we will build an additional 2,000.”
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