A report published today by the Adva Center charges the government with having no desire to bring down home prices despite the promises of the politicians.
The Adva Center for Information on Social Equality and Justice in Israel report by Shlomo Swirski and Yaron Hoffmann Dishon is entitled "The Housing Market Split - Market Forces." The report argues that government institutions and corporations have a built-in interest in preventing major falls in home prices while a wealthy and relatively narrow layer of Israeli society is able to dictate measures in the housing market.
The report cites the Ministry of Finance, the Ministry of Construction and Housing, Bank of Israel, Israel Land Authority and the local authorities as being very hesitant to fulfil the government's promises and lower home prices. The Adva Center argues that the government is influenced by the powerful private sector, the major banks and real estate companies, which see the housing market as a rich source of profits. Moreover, the government sees the residential real estate market as a rich source for collecting tax revenues.
The report's authors say that the situation damages both the public and economy with money that might otherwise have been invested in economic development and creating jobs instead being diverted to investments in the housing market.
Published by Globes [online], Israel business news - www.globes-online.com - on December 1, 2016
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