After more than ten years of rising prices and high demand, Israel’s property market is finally showing signs of a slow-down, although contractors’ profit margins are still high enough for them to be accommodating when it comes to asking price negotiation. Israeli property prices may be exceptionally high in Jerusalem, but it is possible to find investment opportunities in places like Tiberias, Rosh Pina and Tel Aviv.
According to the Central Bureau of Statistics property prices were down by 1.2% in the final quarter of last year and up by just 2% seen on an annual basis. This was the smallest rise since 2009, and partly due to an increase in property tax investors were asked to pay by an Israeli government keen to calm an overheated market and open up opportunities for first time buyers.
Since the introduction of these fiscal measures, Jerusalem’s property market has seen a slump of 5.1%, a fall in prices which began in the third quarter of 2017. While in Jerusalem luxury property can still exchange hands for several million US dollars, it is possible to find a modern resale apartment in Central Tel Aviv for around US $435,000 and agricultural plots of land starting from US $25,000 in Rosh Pina that may potentially receive permits for construction.
It should be noted that newly built villas in Rosh Pina, which lies in the Upper Galilee at the foot of Mount Canaan Safed, are being listed with asking prices of US $1.7 million. Buying land to build on can therefore be extremely lucrative. With a slowing market there are once again opportunities for buyers who are looking for long-term investment and are trying to build up an international portfolio of rental properties.
Article by Maria Thermann on behalf of Propertyshowrooms.com
Source:: Property show rooms