Real Estate Appraisers Association in Israel chairman Erez Cohen predicts a 20% drop in apartment prices nationwide over the coming year, including in high demand areas, unless the government does not immediately address the worsening crisis in housing and infrastructures.
Cohen said, "Immediate and thorough handling of the crisis might prevent this slide, and moderate it to a drop in prices of 4-8%."
A general survey by the Real Estate Appraisers Association since Minister of Finance Ronnie Bar-On unveiled his economic stimulus plan a couple of weeks ago concluded that the plan was pointless, useless, and worthless. The Ministry of Finance proposes spending NIS 21.7 billion on infrastructures. However, the Real Estate Appraisers Association notes that most of this investment is inapplicable over the next five years or more because of the lack of statutory permits and land rights.
Moreover, since the approval of National Outline Plan 38 for the retrofitting of buildings and structures against earthquakes in May 2005, virtually nothing has been done.
The Real Estate Appraisers Association advises investing in national infrastructure projects that can be initiated immediately, and to simplify statutory procedures, to expedite real estate and infrastructure projects, simplify procedures, and provide incentives under National Outline Plan 38, immediately cut mortgage interest rates, restore grants for locating in outlying areas, and provide a safety net for developers and contractors.
Published by Globes [online], Israel business news - www.globes-online.com - on December 9, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008