Israel's property market grows

Photo: Cycling Man

Demand for Israeli poperty is on the up, with the number of properties sold in the October 2013 rising 1. 73 per cent year-on-year. The demand varies across the country, with Judea and Samaria enjoying the largest increase in sales, up almost 50 per cent year-on-year, folowed by Haifa and Jerusalem. On the other hand, sales in Tel-Aviv dropped 9.3 per cent during the same period.

Construction is building too, with the number of starts soaring 17.11 per cent year-on-year, according to the CBS. Completions also increased 11.9 per cent, while the number of properties for sale rose 1.98 per cent compared to October 2012.

Together with economic growth, those factors are pushing up prices. Average property values rose 7.42 per cent year-on-year in the third quarter last year, according to the Central Bureau of Statistics - a slowdown from the 9.77 per cent growth recorded in the first three months of 2013, but faster than the 4.99 per cent annual growth recorded in the third quarter of 2012.

Haifa saw the biggest rise in values, notes Global Property Guide, with values jumping a staggering 25.2 per cent year-on-year. Gush Dan followed with a rise of 15.2 per cent, ahead of Tel Aviv, where values rose 12.7 per cent. Indeed, the latter is home to the highest prices in the country, with average property values of ILS2,250,900, which equates roughly to $642,870.

Jerusalem, on the other hand, saw values dip 3.9 per cent across the 12 months to Q3 2013.