Israel to Crackdown on Vacation Apartments?

5-bigHere is an interesting development in the Israel vacation apartment scene. It seems that the private vacation apartment business has become too successful. In spite of the reasons alleged in the article, it appears that the real beef is that the hotel industry is being out-done and the state is not getting its “fair share” of revenues. Opponents point to the new Berlin law that bans private vacation apartments from the market. According to the article, there were only 900 private vacation apartments in Israel in 2012. Today, there are at least 20,000 apartments doing a brisk business with tourists from around the world. The number could be higher as this represents only those listings advertising through the primary portals, including the increasingly popular Airbnb.

I don’t predict any bans on vacation apartments, known here as dirat nofesh. It would be like the government telling foreign investors what to do with their property. One thing the government does not want to do is cool down the foreign investor real estate market. How they will succeed in slowing down the growth of the private vacation apartment business remains to be seen, but in the meantime, please be sure to visit our vacation homes page and grab a spot for yourself this year.

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