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Survey: Israel world's 3rd hottest real estate market
CNBC says home prices fell following social protests in 2011, but interest rate cut apparently led to resurgence in property demand
Israel remains one of the hottest housing markets in the world, according to a survey conducted by real estate agents Knight Frank and based on housing price increases from Q4 2006 until the last quarter of 2011.
According to CNBC, which published the survey, Israel ranks third with a five-year growth of 54.5% in housing prices. Israel beat Singapore, with a five year growth of 50.5%, but was far behind China (ranked 1st with five year growth of 110.9%) and Hong Kong (93.7%).
"High home prices in Israel led to a series of protests in 2011 with demonstrators asking the government to intervene to cool the market. Thousands of protesters made headlines last July to voice concerns over a housing shortage and high rentals. The demonstrations seem to have had an effect on property prices, which fell 1.2% in 2011, according to Knight Frank," CNBC reported.
"However, after an interest rate cut from 3.25% to 2.5% in February, there appears to be resurgence in property demand, with new mortgages issued by banks jumping by more than 14% in March compared to the two pervious months."
Colombia, the only South American country on the list, was ranked fifth with a five year growth of 50.5%.
