Israel Real Estate Market Ranks No. 1 Worldwide


yerushalayimIsrael’s real estate market currently ranks at number one worldwide after adjustments, but Bank of Israel Governor Stanley Fischer is taking measures to ensure the bubble does not burst.

According to an article published in the Global Property Guide, a trade magazine that monitors the world housing market, Israel’s housing prices rose sixth-fastest among 36 countries in the second quarter of 2010.

After adjustments in the top five countries for economic crashes and rebounds, and reviewing the data for the past two years, concluded the magazine, Israeli real estate ranked number one.

However, “The housing market has set off enough crises, and we’re not going to let that happen in Israel,” Fischer told reporters at a briefing earlier this month. Israel’s economy was one of the few that held firm during one of the worst fiscal crashes to hit the global economy over the past several decades.

Dubai was one of the first markets to begin the slide in early 2008, where less than 10 years ago its glittering panoply of luxurious development projects dotted the landscape. By 2009, prices had crashed by 50 percent or more.

In the United States, defaults on mortgages and massive foreclosures forced families out into the streets; unemployment skyrocketed, and new construction screeched to a halt.

In Israel, there was high demand, and low supply. Banks continue to require a minimum 30 percent down payment for most mortgages, and prices are climbing in all areas of the country, partly due to last year’s 10-month freeze imposed by the government on Jewish construction in Judea and Samaria. The result: a high pressure housing market developing in Israel.

{Arutz Shevah/}


  1. Believe me, this is not “good for the Jews!” It is no comfort to me that my older children’s apartments have more than doubled in value over the past few years. How are we supposed to be able to marry off the rest of our children?! It is not as though there are rentals available either, and what there is, the rent is sky-high. Many young couples are living in tiny one-bedroom flats with no room to turn around without bumping into each other. No personal space is not great for shalom bayis when the young wife can’t talk on the phone while her husband is doing his shana rishona night seder at home. Foreign investers hike up the prices for the local Israelis. So no, this is not great news for your average Israeli other than the investors.

  2. Who needs a booming housing market when there are people getting married and have nowhere to live, and the building freeze is really a busha and a cherpa for a country like israel that probably has per rota more young people getting married then most countries, but as far as the economy boost which is really another issue entirely, might be beneficial for everyone in the long run.

  3. Simplistic figures on real estate price growth rates amortised across the board are not really helpful for measuring the true state of the general welfare. A much more important indicator of economic health is the average wage to cost of an average home index. A whole basket of goods and services must be included to measure the wealth of a nation. However I am being cautious here. The rise in property prices in Israel is generally a very good sign. People will not move to or invest in an area where they don’t feel safe. As peace unfolds more and more in the region the GDP will rise. Pretty simple messianic formula. You cannot divorce economic opportunity from choice, self-actualisation and meaning. Wealth does not guarantee non-violence in a nation but it is a vital contributor to psychological, spiritual and physical health.