Government Assessor Eyal Yitzhaki today published its survey of prices for four-room apartments for the fourth quarter of 2010, which reinforces the concerns of the Bank of Israel and Ministry of Finance that real estate prices are continuing to rise.
The average nominal price of four-room apartments in the cities covered by the survey rose 3.8% in the fourth quarter. The Consumer Price Index (CPI), excluding the housing item (rent), rose by 1% over the same period. The average nominal price of four-room apartments was 13.7% higher than in the corresponding quarter of 2009, and 29.4% higher compared with the fourth quarter of 2008.
Yitzhaki noted that, during the fourth quarter. The Bank of Israel raised the interest rate and imposed restrictions on mortgages in an effort to reduce demand for homes. However, improving economic indicators and continued growth are boosting housing demand.
The average price of a four-room apartment in Tel Aviv rose to NIS 2.89 million in the fourth quarter.
Published by Globes [online], Israel business news - www.globes-online.com - on February 7, 2011
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