Israeli property prices 25pc higher than average

Israeli property prices are approximately 25 per cent higher than their historical average, according to the International Monetary Fund.

A report from the IMF shows that low mortgage rates and a low supply of land have combined to drive up property prices in the conutry, with values rocketing 80 per cent in nominal terms since 2007. Now, "further measures may be needed" to avoid a housing bust, reports World Property Channel.

"The Bank of Israel should respond nimbly to changes in the economic environment," reads the IMF report. "A further tightening of macroprudential measures may be needed to alleviate risks of a boom-bust cycle in the housing market."