Ness Ziona. Prices expected to fall

Realtors foresee 10% drop in flat prices

Survey conducted by Deloitte Brightman Almagor Zohar ranks Tel Aviv as leading city where prices are expected to fall. Where is best place to invest? Think periphery

If you have not yet purchased a flat, perhaps you should consider holding off a bit. According to leading realtors on the Israeli real estate market, prices are expected to drop in the next year.


A survey by accountancy firm Deloitte Brightman Almagor Zohar shows that 46% of senior realtors in Israel forecast a 10% drop in flat prices; 9% foresee a 10%-20% drop; 30% see no price change in the next year, and 15% predict that flat prices will climb by 10% during the next year.


Furthermore, according to the survey, the best areas for purchasing flats will be Hadera (cited by 33% of senior realtors), Yavne (25%), and Haifa (25%), followed by Ashkelon, Beersheba and Rehovot, each cited by 17% of the realtors.


The survey shows that Tel Aviv is the leading city where flat prices are expected to drop during next year. Thirty-seven percent of respondents believe prices in the city are expected to drop.


The other cities where apartment prices are expected to fall are Ness Ziona, Beersheba and Modiin. Conversely, only 2% believe prices in Rehovot, Hadera and Rishon Lezion will drop.


As for rent, the survey found that most senior realtors (53%) believe that rent prices in Tel Aviv will remain stable as compared with 29% who predicted that rent in Tel Aviv will rise and 16% who think it will drop.


Head of real estate at Deloitte Israel, CPA Amity Weber, says that "the anticipated price drop stems from tighter regulation in real estate and finances, as regards demand as well as supply, alongside increasing data showing that Israel's economy has entered a slowdown.


"On the other hand, we expect rent to raise so at the end of the day, flat purchasers have a dilemma on their hands: should they wait for the big price drop in the future and pay higher rent today of should they take advantage of the low interest rate on mortgages?"


Most senior Israeli realtors view the US real estate market as the highest potential for investment. Germany was cited as another destination that may yield high returns on real estate investments, followed by Brazil, England and Canada.


Despite the plummet in real estate prices in Greece and Spain, realtors still believe they offer attractive real estate investment opportunities.


Click here to read this report in Hebrew



פרסום ראשון: 11.28.11, 09:06
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