Solid growth expected for Israeli property during 2013

At the 2013 Stars Convention held at Sun City during February, RE/MAX of Southern Africa Broker/Owners and agents had the opportunity to gain insight into other RE/MAX offices and their property markets from around the world.

International guests at this year’s convention included Regional Owner of RE/MAX Israel, Bernard Raskin. Zimbabwean-born Raskin impressed delegates with his Afrikaans abilities, along with the fact that Israel never really experienced the tailspin effects of the current recession that many countries did.

Instead, property in Israel continued to grow from strength to strength, according to Raskin who says that the demand for property in Israel is currently outstripping supply. This is despite the fact that mortgage finance in Israel is hard to get, with 65% finance the maximum that banks will even consider loaning on property.  Raskin said that this is one of the main reasons why Israel fared well throughout the recession, as the banks didn’t have a lot of bad debt.

Buyers in Israel, he said, cover a wide demographic of people, from first time buyers to those upgrading their properties to suit their family requirements and to those downscaling closer to retirement. According to Raskin, first time buyers make up about 35% of the market, with three to four-bedroom apartments close to economic hubs being the most sought after property.
“There is generally a shortage of stock,” said Raskin, “although more and more building is taking place outside of Tel Aviv, where property is expensive. Good properties in surrounding areas within a commutable distance to the city centre are more affordable, with properties priced between US$250 000 and US$300 000 the most active.”

Raskin says that as it is a small country with a limited supply of land, real estate is generally expensive. In general, Raskin says that at the lower end of the market, property is priced at around US$200 000 on average, with mid level properties hitting the US$300 000 mark on average, while the top end homes can range around US$1million or more, depending on the location.
Talking to the RE/MAX of Southern Africa Broker/Owner and sales associates at the convention held in February, Raskin said that while the economy in Israel is slowing down, in light of global market conditions, he still expects the property market to see around 5% growth in the year ahead. “We have low interest rates and low inflation of below 2% which is assisting in making mortgages more affordable. Currently around 35% of a property investment is cash with parents providing a good part of this, while the balance is financed through mortgages.”

Comparing Israeli property trends to South Africa, Adrian Goslett, CEO of RE/MAX of Southern Africa, says that while property in South Africa is perhaps more affordable, only around 50% of all mortgage applications are currently being approved by the banks. “While first time buyers make up less than 25% of the South African buyer profile,” Goslett says, “many buyers in the current market are also relying on their parents to assist them financially in the home buying process, especially with the deposit required in order to qualify for a home loan.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 22 Jan 2018
      Moving away from the city to a country or coastal town and a slower-paced life is a frequent new-year resolution for South Africans, but thorough research should be done before you break free from the hustle and bustle, because making the wrong move could turn out to be a very expensive mistake, and even more stressful for you and your family than staying in the “big smoke”.
    • 22 Jan 2018
      Cape Town is home to many breathtaking and historic homes, but House Invermark designed in 1969 by South African architect Gilbert Colyn, with inspiration from two modernist icons: the Glass House by Phillip Johnson and Farnsworth House by Ludwig Mies van der Rohe is in a class of its own.
    • 22 Jan 2018
      2017 was a challenging year for the South African property market in general, despite small pockets of thriving activity in areas like the Western Cape. As we head into 2018, Tony Clarke, Managing Director of the Rawson Property Group, casts his eye forward to property trends and market influences that could make their impact felt in the New Year.
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us