Israeli housing prices increased 345.7 percent over the last decade, according to research from Money.co.uk. That’s the largest increase of any country in the world.
Prices per square meter in Israel rose from $2,145 in 2010 to $9,560 in 2020. That’s not just keeping up with inflation, which rose by only 0.92 percent during the same period. And it definitely isn’t in keeping with the last decade’s 17.5 percent rise in wages.
Israel’s No. 1 position is more than double the closest runners-up — Switzerland, which saw a 165 percent increase; Germany, where housing prices rose 162 percent, and the United States, which logged a 153 percent bump. Coming in 10th place was the United Kingdom, with a 75 percent increase in housing prices since 2010.
Greece experienced the biggest decrease in prices per square meter — negative 17.9 percent. This was in keeping with the country’s economic crisis, which also depressed wages by 16 percent annually during the same period.
Norway, the Czech Republic and Belgium also saw decreases in housing prices.
Details are in the full report.
The Money.co.uk research doesn’t consider the impact from the COVID-19 pandemic. In 2020, the average price of owner-occupied dwellings in Israel fell by 3.2 percent, the largest contraction since 2007. When adjusted for inflation, prices fell by 2.2 percent. The number of apartments bought during the second quarter of 2020 also plummeted by 27 percent.
However, by 2021, the figures were trending upward again, with housing prices in Israel rising by 5.6 percent, according to Israel’s Central Bureau of Statistics.
“Real estate accounts for 19 percent of gross domestic product directly, another 13 percent indirectly [and] not less than 40 percent of the public’s total wealth,” said Elli Kraizberg, a professor of business administration at Bar-Ilan University.
Tel Aviv holds the distinction of having Israel’s most expensive residential real estate, followed by the Tel Aviv suburbs of Kfar Saba and Ramat Gan, and then Jerusalem. Beersheva has the cheapest housing in Israel among the country’s big cities.
Israeli Housing Prices Show Largest Increase In The World appeared first on Israel21C.
Edited by Judith Isacoff and Bryan Wilkes
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