Meitav sees Israel housing prices falling

More Israeli families are expected to prefer to rent a house instead of buying their own apartment, and the consequences will be negative, as Alex Zbsinski, chief economist in the Investment Council.

In his weekly poll of the Israeli economy, Zabashinsky wrote, “Since 2021, only the first three families can meet the conditions of banks to pay the Mediterranean mortgage, compared to five Dels until three years.” Until 2021, the average payment on the average mortgage was generally less than the average rent. However, at the end of 2024, the average mortgage revenue was about average lease by about 1500 NIS, or 30 %. “

In Meitav's evaluation, this means more pressure on the rental market. “As long as the economy grows and in full employment, the demand for rented apartments is expected to be strong and supports a relatively high increase in the housing department in the price index,” Zabashinski wrote. The weight of the housing department has jumped at the consumer price index, which mainly reflects the changes in rent, and constitutes about 27 % of the index. In other words, any increase in rents directly affects inflation and pays the index

“In our evaluation, the prices of apartments that may decrease specifically. The risks in the residential real estate market are one of the threats to growth in the economy.”

It was published by Globes, Israel Business News – En.globes.co.il – on February 16, 2025.

© Copy Publish Publisher Itonut (1983) Ltd. , 2025.