The Israel Ministry of Finance passed a series of purchase tax modifications last year designed to slow down the purchase of real estate by investors. The Ministry’s objective was to open up more homes to young couples who cannot afford the high prices, especially in Israel’s center cities of Tel Aviv and Jerusalem. The thinking was that real estate investors, especially overseas buyers, drive up or maintain the high price structure, squeezing out young couples and others who need more affordable housing. The scheme seems to have worked everywhere but Tel Aviv. According to a recent Globes article, the proportion of real estate investors purchasing property in Tel Aviv actually increased by 17 percent in December.
The report also reveals that the number of properties sitting on the market waiting for buyers has dropped, to the lowest it has been since 2012. This means that it is a seller’s market, good news if you want to sell you home. If you are looking to buy property in Israel, it means that if you find something you like, you need to move quickly.
Be sure to contact us for all of your real estate questions and needs. Our focus is on northern Israel, but we have great referrals we can make to help you with your search in other parts of Israel.