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In an uncertain world, Israeli real estate remains one of the most reliable and profitable investments that you can make. Here are just 8 of the financial arguments for investing your money in Israel during the coming year – leaving aside the many emotional and personal reasons that people choose to own a home in the Jewish State.
- Israel’s housing prices have risen more than 5% every year for the past 20 years, with even higher rates of increase in Israel’s populous and popular central region. This rate of increase shows no sign of slowing and is great news for investors.
- Demand continues to outstrip supply in the Israeli real estate market, largely due to the slow bureaucratic approval of building permits. Successive governments have failed to address this problem.
- Strong Aliyah trends and other demographic factors are expected to keep the demand for housing high in the coming years.
- 35% of Israelis rent their homes, and rental apartments are in short supply and expensive, especially in the most popular central region.
- The profitable return on Israeli real estate investment comes partly from rental income, and partly from the sale of your property. You can typically achieve 25% return on investment in 3 to 4 years.
- Israel’s new government has announced plans to rezone downtown office buildings and commercial spaces for conversion into residential units. This will create small apartments in city centers, which will be easy and profitable to rent.
- The Tel Aviv municipality is investing 100m NIS in renovating and upgrading apartment buildings, increasing their value. Similar to the now-defunct Tama-38 program, investors can benefit hugely if a property they own qualifies for improvement. Details here.
- The long-term real estate rental market in Israel is steady and profitable, especially when your investment property is managed by property management experts. From finding quality tenants to ensuring that your property is well maintained, the Creative Estates property management team will protect your investment as if it were our own.
Shaun Isaacson is CEO of Creative Estates Israel, a qualified realtor, lawyer and MBA. Find out more about his company’s investment and property management expertise at www.CEIsrael.com