Served on behalf of DUN’S 100
When examining the ratio between housing prices and income in Israel, we find that it is the highest of all the countries.OECD. In other words, Israelis pay the most money out of their income on housing expenses. However, according to the CEO of Bamuna, Israel Zeira, for Israeli real estate buyers, the situation is going to be even more complex in the coming years.
“In the last year, all the developments have tipped the scales towards a significant rise in real estate prices,” Zeira claims. “First, the decision to lower the purchase tax will put more money from investors into the market. Investors’ money, worth a rise in prices. Second, very recently they decided to promote a change in the limitation of the prime-linked loan component in a mortgage loan: instead of the limit of up to one-third at most, borrowers are now allowed to take out a loan up to two-thirds of which will be prime-linked. According to Bauna’s mortgage experts, this is significantly cheaper money for borrowers. “When the money is cheap, more people will take out mortgage loans, which of course will increase demand and contribute to a further rise in prices.”
According to Zeira, the most important factor regarding the rise in prices is in the marketing of land for construction. “Already today there is a great shortage in the market in terms of supply of apartments,” he explains. “In the last year, almost no land has been marketed and sold for construction by RMI. This is due to a political crisis, a weak government, a housing minister who can not promote a plan to reduce housing in the periphery due to lack of budget for the state, and the plan itself is too small. “As the actual price per occupant has not changed anything in real terms. We will add to this the growing anti-Semitism in several countries around the world, including the United States, which will lead to a welcome wave of immigration to Israel, and will increase demand.”
“My forecast,” says Zeira, CEO of Emunah, “is that by the end of the year we will see an average increase of ten to fifteen percent in real estate prices, and this trend will continue due to the shortage created for the coming years, until they can (if they can) catch up. Demand. “
The center is no longer at the center
Israel Zeira is the founder of the real estate company “BaEmuna”, which specializes in organizing purchasing and development groups for construction. What we see this year in real estate is a strengthening of the periphery at the expense of the central region.
“In tenders that have been in the administration in recent weeks, many plots of land have been sold in the periphery,” says the CEO in Emuna. There are several reasons for this: First, Litzman’s price reduction plan, assuming that one day there will be a government in Israel capable of passing a state budget, seeks to subsidize only apartments in the periphery and not in the center, and even second-hand apartments.
A second reason is the state’s massive investment in infrastructure in the periphery, new roads, the Eastern Railway, and the like. The center, on the other hand, suffers from an infrastructure gap that has in fact failed to catch up with the state, and people are no longer waiting. ”
Construction of Bamuna in Carmei Gat.
“Third, and this is the main reason,” says Zeira, “is the change Corona has made to our perception of life, as well as to perceptions about the labor market: what was before Corona will probably not return, or at least change significantly. From what they thought, if at all.
Therefore, companies have realized that they can save quite a bit of office costs, if they allow their employees to work from home, at least part of the time, and take on much smaller offices. In response, fewer Israelis will seek proximity to the center in choosing their living area, and will prefer another room and garden than a small, crowded apartment in the towers. “
“Beyond that,” says Zeira, “people’s lifestyles will change: fewer people will go to restaurants, to the movies, to the theater. This train will leave the station. People will be more at home even after the Korona. If so, it will be less important to live in Tel Aviv and the center.
Already last week it was announced that rental prices in Tel Aviv dropped to their level two years ago. That is, not only has the rise in rental prices been halted, it has even gone down. But even when the corona restrictions disappear (and who even knows when that will be the case?) Entrepreneurs have less money to set up small businesses, lots of businesses and individuals have gone bankrupt and will not recover. This is another reason that will increase the demand for housing in the periphery at the expense of the center. “
The real estate company in Faith is a leader in marketing projects to the religious and ultra-Orthodox public in Israel in purchasing groups and initiating construction. The company has built throughout the country, in Carmei Gat, Beit Shemesh, Efrat, Harish, Jerusalem and more. The company’s CEO, Israel Zeira, is the founder of Rosh Yehudi. , An organization whose goal is to bring hearts closer to Judaism, and to create a dialogue in the heart of Tel Aviv.