The real estate sector is of such central importance to the national economy that it is customary to attribute reciprocal influences to the two. Thus, the housing market is impacted by the state of the economy and the macroeconomic climate (interest rates, unemployment, inflation, average wage, exchange rates, tax rates, etc.), but at the same time exerts a considerable influence on the economy. [1]
Housing prices have been the focus of the public and media discourse in Israel in recent years due to the steep rise of prices in the housing market. According to the Home Price Index published by Israel’s Central Bureau of Statistics (CBS), prices increased by 47% from 2011 to October 2017. With the aim of reducing housing prices or at least slowing down their growth rate, several policy initiatives have been proposed, only some of which were implemented. Such programs include the Zero VAT program, the government subsidized Buyers’ Price program, increased tax on investor-held homes, and increased tax on owners of a third home. [2]
This report will allocate the data that reflects and influences on that market, reviews the changes made on each parameters during the last thirty years, and compare some of the economic parameters to other countries/regions in the world.
The raw-data will be used in the report will be allocated from formal sources, in Israel and around the world, like the OECD, the World Bank, Bank of Israel and Israel Central Bureau of Statistics.
[1] https://www.boi.org.il/en/Research/…
[2] https://www.boi.org.il/en/Research/…