Home prices in peripheral cities have risen particularly strongly since 2007, the Central Bureau of Statistics reports. The best performing of 14 cities surveyed was Beersheva where prices have risen 108.7% for small apartments since 2007 and 92.4% for large apartments. However, prices were still the lowest of the 14 cities covered. The most moderate rises since 2007 were in Tel Aviv where prices have risen 38% for small apartments and 31.7% for large apartments.
Overall the Central Bureau of Statistics found that the average price of an Israeli home fell 12.4% between 2000 and 2006 but rose 85.8% between 2007 and 2013. Between 2008 and 2013 the prices of small apartments rose by 57%, and the prices of large apartments rose by 50.4%.
Between 2008 and 2013 the price of an average small apartment rose by 81% in Haifa, 65% in Ashkelon and Ramat Gan, 62% in Bnei Brak, 59% in Petah Tikva, 58% in Rehovot, 49% in Rishon Lezion, 48% in Jerusalem and Netanya.
Between 2008 and 2013 rents of small apartments rose by 36.6% and rents of large apartments rose by 43%. Here too Beersheva held the record with rents of small apartments rising by 51.6% and of large apartments rising by 61.1%. Rishon Lezion had the most moderate rise in rents with small apartments up 26.6% and large apartments up 29.9%.
The rise in home prices has reduced the percentage of Israelis owning homes to 68% while 27% live in rented accommodation. The highest level of home ownership is in Rishon Lezion, Rehovot and Holon (72%) and the highest level of rented accommodation is in Tel Aviv (46%), Ramat Gan (38%), and Beersheva (36%).
Published by Globes [online], Israel business news - www.globes-online.com - on November 3, 2014
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