According to Geocartography Knowledge Ltd., prices of Israeli apartments at the end of 2008 were on average 10.6% higher compared with the end of 2007 (not including luxury apartments and special apartments). The average Israeli apartment at the end of 2008 cost about NIS 812,000 compared with about NIS 734 million the previous year, according to the research of Geocartography CEO Dr. Rina Degani. In smaller towns and peripheral regions, the average cost of an apartment rose by 9.7% to NIS 566,000.
However, it should be noted that the rise in prices took place in the first three quarters of the year, when the cost of the average apartment rose 16% with prices falling back 5.2% in the final quarter of 2008.
At the same time, Israel's luxury home market, including all types of houses and garden apartments, penthouses and apartments worth over NIS 1 million, rose by 12.3% in 2008, a similar increase to the less expensive apartment market.
The average luxury home was sold for about NIS 1.73 million at the end of 2008 compared with NIS 1.54 million at the end of the previous year.
Tel Aviv suburb Petach Tikva led the price rise in 2008 with the average apartment climbing 22% in price to NIS 856,000 last year. In second place was Modi'in where the price of the average apartment rose 21% to NIS 1,031,00. The average apartment in Rishon Lezion and Yavne rose by 17% to NIS 926,000 and NIS 587,000 respectively. The average apartment in Givat Ze'ev recorded a 16% rise to NIS 852,000. Prices rose 15% in Ramat Gan to NIS 1,037,000 and 14% in Tel Aviv to NIS 1,214,000. The average apartment price in Mevasseret Zion rose by 14% in 2008 to NIS 1,218,000 and by 10% in Jerusalem to NIS 1,060,000.
Published by Globes [online], Israel business news - www.globes-online.com - on January 11, 2009
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