Bank Leumi believes Israel real estate prices will rise by 5 to 10% in 2011
In a macroeconomic survey released this past week, Bank Leumi is predicting that home prices in Israel, will rise by 5 to 10% next year.
In spite of efforts to increase the supply of apartments, the bank believes that demand will still outstrip supply in the near future.
Bank Leumi says that the Israel Land Administration's (ILA) increased marketing of land for homes, combined with incentives to expand housing will boost housing starts from the current 35,000-40,000 a year to 40,000-45,000 a year in 2011-12, which the Bank feels will not be sufficient to meet demand.
Because Bank Leumi expects the inventory of homes for sale to remain low and interest rates to remain low as well, they are projecting the continued rise in prices, although at a much more moderate rate than the last few years.
Source: Globes online
December 17, 2010
