Israel world's third hottest real estate market

CNBC places Israel third behind China and Hong Kong on five year home price rises despite a reported 1.2% fall in 2011.

23 April 12 18:17, Einat Paz-Frankel

Despite the affordable housing protests, Israel is holding on to its spot as the third-hottest housing market in the world according to a survey by CNBC, based on data from real estate agents Knight Frank. The survey found that house prices in Israel jumped more than 21% in 2009 and16% in 2010.

Israel was placed third with 5 year growth of 54.5% beating Singapore into fourth place with five year growth of 50.5% but well behind China in top spot with five year growth of 110.9% and Hong Kong in second place with growth of 93.7%.

CNBC noted, "High home prices in Israel led to a series of protests in 2011 with demonstrators asking the government to intervene to cool the market. Thousands of protesters made headlines last July to voice concerns over a housing shortage and high rentals. The demonstrations seem to have had an effect on property prices, which fell 1.2% in 2011, according to Knight Frank."

But CNBC sees home prices rebounding saying, "However, after an interest rate cut from 3.25% to 2.5%in February, there appears to be resurgence in property demand, with new mortgages issued by banks jumping by more than 14% in March compared to the two pervious months."

Published by Globes, Israel business news - www.globes-online.com - on April 23, 2012

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