02/10/08
Bank of Israel leaves interest rate unchanged
There had been four consecutive monthly increases until now.The Governor of the Bank of Israel left the current interest rate unchanged at 4.25%. He previously made four monthly consecutive 25-basis point interest rate hikes. This month's dilemma was not "how much to raise the interest rate", but
"whether to raise the interest rate" in light of the global financial and
capital market crisis and the credit crunch.
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17/09/08
August CPI up 0.8%
The rise was at the upper end of market expectations.
The Consumer Price Index (CPI) rose by 0.8% in August to 107 points, the Central Bureau of Statistics reported this evening. Inflation for the past 12 months was 5%. This represents the highest CPI figure since 1995. The housing maintenance item rose by 3.7% contributing 0.6% to the CPI. The rent item rose by 3.5%, contributing 0.1% to the CPI. Many shekel-denominated leases came up for renewal last month, with a big jump in rent.
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14/09/08
Banks must provide homes for mortgage evictees
The Knesset Constitution, Law and Justice Committee today passed an an amendment to the Bailiffs Law to this effect.
Banks will have to provide alternative housing for up to 18 months for families evicted from their homes because of mortgage arrears.
The foreclosed homes will be Thesold to cover the debt.
The amendment was approved for the second and third readings by the Knesset plenum. The amendment stipulates that the bailiff may not order the sale of the property until after proving the debtor and his family have reasonable alternative accommodations or have been provided with alternative arrangements
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09/09/08
Rent rises roll on
The average rent for a three-room apartment in central Tel Aviv reached 56.1% of the average national monthly salary.
For a 3 room apartment in central Tel Aviv the average rent rose by 5% in August, compared with July of 2008
The average rent for a 2 and 3 room apartment in Jerusalem remained unchanged
For a 4 room apt in Tel Aviv, the average rent was NIS 6,298 whilst in Jerusalem it was NIS 4,345
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13/08/08
High-rises approved for Jerusalem

The Jerusalem Regional Planning and Building Commission will support the construction of high-rises in the city center under the new Local Outline Plan. The plan permits high-rises along Jaffa Street from the central bus station at the western entrance to the city to the intersection with King George Street, and along the latter as far as the Plaza Hotel. No high-rises will be permitted along the stretch of Jaffa Street in the 19th century
Makor Baruch neighborhood and the Mahane Yehuda open market. Facades must
reflect the city's historic structures in this area. High-rises will be limited to 24 floors
High-rises in the city center will be of mixed-use, with the street level floors slated for commercial use, irrespective of the building's height or type of facade. For large lots slated for the construction of at least two high-rises, residences may not occupy more than half of the built-up space.
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08/08/08
Rise in rents spreads beyond central Tel Aviv
The rise in apartment rentals is spreading from central Tel Aviv to other parts of the city, and to other cities as well.
The average rent for a three-room apartment in North Tel Aviv, rose to NIS 4,746 in July from NIS 4,650 last June.
Apartment rentals have been rising across Israel. In Givatayim, for example, rentals rose by nearly 6%, in Jerusalem by 5%, and by 3-5% in Beersheva.
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07/08/08
Bank of Israel raises interest rate to 4%
The Bank of Israel focused on fighting inflation, and chose to increase the interest rate for the third consecutive month.
Governor of the Prof. Stanley Fischer raised the interest rate for August by 25 basis points to 4%.
This is the third monthly consecutive interest rate hike. The interest rate is now at its highest level since it was at 4.25% in February 2008. The Bank of Israel cited the need to support the return of the inflation rate and inflation expectations to around the middle of the1-3% inflation target range, which it views as essential as a basis for sustainable growth.
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21/07/08
Yuvalim to build mall in Beit Shemesh
180,000 people live in the Beit Shemesh area
Yuvalim Ltd. will build a 22,000-square meter mall in Beit Shemesh at an investment of NIS 140 million. The mall will be located on a 25-dunam (6.25-acre) site owned by the company at the entrance to the town's industrial zone.
Under the Urban Building Plan (UBP) the site is marked for commerce. Nearby, Israel Police is due to build a new training center. Currently the Big shopping center occupies an area of approximately 10,000 sqm
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16/07/08
Bill proposes 5-year tax break for building rental apartments
The ministerial committee for legislation today approved a private members bill to renew the tax break on new rental apartment buildings untill the year 2013. Tax breaks were granted under section 54 of the Law for the Encouragement of Capital Investments, but were discontinued in 2006.
The bill is meant to encourage the construction of rental housing for people unable to buy an apartment.
Although the bill make no mention of specific areas of building, it will presumably boost construction in high-demand areas in central Israel and elsewhere. The ministerial committee for legislation made its approval conditional on coordinating the legislation with the relevant ministries. It is hoped that this move will curve the spiraling rental fees that Israelis are paying today specially in the center of the country.
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09/07/08
Home prices seen rising further - survey
A new survey by apartment price list publisher Levy Yitzhak reveals that despite the rise in real estate prices, 13% of those polled say they are considering buying an apartment in the next six months.
The average apartment price in North and Central Tel Aviv has risen to NIS 1.513 million. Levy also found strong demand in Ramat Gan and Givatayim. Demand continues to rise in Jerusalem, with the average apartment price now at NIS 1.18 million. Apartments in the up-market Talbieh, Rehavia, Germany Colony, and Mishkenot Sha'ananim neighborhoods, as well in orthodox religious neighborhoods such as Mea Shearim, are being snapped up at higher-than-average prices.
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22/06/08
Housing starts down 15% in Q1
The Central Bureau of Statistics reports a 15% drop in housing starts in the first quarter of 2008 compared with the corresponding quarter of 2007. The greatest decline was in the Tel Aviv region.
Petah Tikva was the exception because it still has land reserves available for building. Housing prices are also rising slowly but steadily.
The Central Bureau of Statistics adds that despite the shekel's sharp appreciation against the dollar in the past year, most home buyers still ask for price in dollars, and buyers state the maximum price that they are willing to pay in dollars
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10/07/08
Municipality to add 10,000 apartments in East Jerusalem

The Jerusalem municipality has initiated a plan for the construction of 10,000 new apartments in Arab neighborhoods in East Jerusalem. The Jerusalem Regional Planning and Building Commission has approved the plan in principle. The plan covers areas including the northern neighborhood of Shuafat and the southern neighborhood of Beit Zafafa.
Jerusalem municipality's Osnat Post said, "The Old City faces a double problem. It is a World Heritage Site at risk where strict preservation regulations apply to avoid damaging its fabric. However, there is also a shortage of housing. We therefore set strict detailed guidelines for construction and additions, but it will be possible to quickly issue building permits."
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09/07/08
Tel Aviv Hilton will use seawater for cooling system

Hilton Hotel's air conditioning system is 40 years old.
The Tel Aviv Hilton will begin using seawater to cool its air conditioning
system. The move will save fresh water and cut the hotel's electricity
consumption by 10%, saving NIS 1 million a year.
Hilton Hotel hired a specialist company to dig a 120-meter well in the
hotel courtyard to obtain the seawater, which will be sent via pipes to the
eco-friendly air conditioning system.

Looks like this may be the beginning of a new trend.
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18/06/08
50-storey tower to rise near Diamond Exchange

A consortium of real estate companies will build a 50-storey tower at the Ramat Gan Diamond Exchange at a cost of NIS 400 million.
The building is located on a seven-dunam (1.75-acre) lot at the corner of Bezalel Street and Hayetzira Street is one of the largest land reserves in the area and currently occupied by a parking lot.
The land was acquired in 2001 from 20 landowners, some of them diamond merchants
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18/06/08
Housing starts down 15% in Q1
The Central Bureau of Statistics reports a 15% drop in housing starts in the first quarter of 2008 compared with the corresponding quarter of 2007. The greatest decline was in the Tel Aviv region.
Petah Tikva was the exception because it still has land reserves available for building. Housing prices are also rising slowly but steadily.
The Central Bureau of Statistics adds that despite the shekel's sharp appreciation against the dollar in the past year, most home buyers still ask for price in dollars, and buyers state the maximum price that they are willing to pay in dollars.
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04/06/08
Tel Aviv residents oppose 40-storey high-rises
Original plans called for three 29-storey high-rises in Kikar Hamedina.
A group of local residents at Tel Aviv's Kikar Hamedina will shortly submit objections for the revised plan for the site, which allows the developers to add more floors to the proposed high-rises in exchange for canceling the commercial floors.
The residents have already filed claims for compensation for the proposed project, and are considering filing more claims for compensation if their objections are dismissed.
The Tel Aviv Local Planning and Building Commission announced the detailed plan for the project on April 2008 and for the possibility of filing objections.
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01/06/08
Unemployment in Israel at 24-year low
The unemployment rate for men fell below 5.9%,and for women 6.7% its lowest level in 30 years.
The seasonally adjusted unemployment rate fell to 6.3% of the civilian labor force in the first quarter of 2008, the Central Bureau of Statistics reports.
This is a 24-year low, since the unemployment rate of 5.9% in 1984.
The unemployment rate fell from 6.7% in the fourth quarter of 2007 and 7.8% in the first quarter of 2007.
The weekly average of unemployed was 184,600 during the first quarter, the lowest number since 1990.This encouraging figures have a positive effect on house buying.

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16/05/08
CPI rises more than expected
Interest rates may now be increased even more than the previously expected 0.5%.
The April Consumer Price Index (CPI) shot up 1.5%, the Central Bureau of Statistics reported, well above even the highest forecasts by analysts.
This was the highest monthly CPI rise for the month of April since April 2002.
Inflation for the past 12 months was 4.7%, well beyond the 3% ceiling of the price stability target.Excluding housing, inflation over the past 12 months was 5.6%.
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14/05/08
Value of Israelis' physical assets up sharply

Physical property owned by households and private companies is worth over NIS 1.48 trillion.
The aggregate value of physical property - homes, cars, and land - of households and private companies exceeded NIS 1.48 trillion at the end of 2007, an all-time high, after increasing by 9.3%, or NIS 127 billion during the year. The figures were collated from a number of sources, including the Ministry of Finance, the Central Bureau of Statistics, the Bank of Israel, and commercial banks.
The figures do not include property owned by the government, the Bank of Israel, commercial banks, and other financial institutions.
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30/04/08
The interest rate in Israel remains at a record low

The Bank of Israel announced that the Governor of the Bank of Israel Prof. Stanley Fischer left the bank's interest rate at 3.25%, which is the lowest ever rate in Israeli history.
The governor did imply that if the pace of inflation picks up, he would raise interest rates in upcoming decisions.
This, together with the country's current growth rate and low unemployment in addition to rising rental prices mainly in the center of the country is creating a very positive response from prospective home owners who are now taking home mortgages and existing mortgage holders who are now ready to upgrade to bigger homes.
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10/04/08
Housing Ministry looks to reinstate grants
The ministry's director claims 25,000 more families could have bought homes in the past five years had the grants not been abolished.
The Ministry of Housing and Construction is formulating a plan to reinstate housing grants to low-income families, which it will soon submit to the cabinet.
This move follows an announcement by the Bank of Israel that it favored restoring such grants.
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01/04/08
How many bedrooms home buyers purchase in Israel?
1bedroom 2%,
2bedrooms 28%
3bedrooms 38%
( last year it was 49%)
There is a tendency now to prefer 4 bedrooms 23%
5 bedrooms 9%

The average number of bedrooms per home stands at 3.03 (in 1975 it was 2.03)This reflect a marked improvement in Israel's standard of living
over the past 30 years.
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01/04/08
Jerusalem prices increased by 45% from 2004 to 2007 as a result of the strong demand by overseas buyers.
The percentage of foreign buyers to local buyers during the above period was as follows:
Jerusalem 30%
Tel Aviv 20%
Natanya 20%
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19/03/08
Less illegal building in east Jerusalem
At the same time, legal construction grows.
Jerusalem municipality figures indicate a sharp decline in illegal construction in east Jerusalem and a corresponding increase in legal building.
The municipality attributes the change to increased enforcement of building codes.
As a result of the above, in 2007 less illegal buidings had demolition orders compared to previous years.
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18/03/08
Real estate in the shadow of the Qassams

The first Grad missile that fell on Ashkelon scored a direct hit on the real estate sector. Deals that were about to be signed were stalled, and buyers who did agree to continue negotiations demanded 10% price reductions.
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09/03/08
One in ten Tel Aviv luxury apartment buyers are under 30 years old
Nearly 90% are bought by married couples.
A comprehensive survey of luxury apartment buyers in Tel Aviv, shows that the most common buyer is a married couple in their 40s, mainly professionals such as doctors, lawyers, accountants,etc., who reside in Tel Aviv. Prices of the most prestigious new residential towers are already reaching the $US12,000 per sqm mark and sometimes even more.
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28/02/08
Unemployment in Israel lowest since 1990s

Unemployment fell to a seasonally adjusted 6.7% in the fourth quarter, compared with 7.8% in the corresponding quarter in 2006, the Central Bureau of Statistics reports. This is the lowest rate of unemployment in Israel since the early 1990s, and the first time it has fallen below
the 7% level.This together with the fact that the Governor of the Bank of Israel reduced the level of interest rates in the country over a week ago makes an increase in the demand to purchase real estate inevitable

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18/02/08
Air quality improves in Bet Shemesh
Air quality also improved in the Dan region and Haifa , but worsened in Jerusalem and Modi'in.
The air quality in the Dan region, Bet Shemesh, Rehovot, Haifa , the Krayot, and in Afula was better in 2007 than in 2006,mainly due to a drop in the number of dust storms as well as a significant reduction in the number of excessive ozone levels (partly as a result of new emmissions regulations as well as stricter enforcement against polluting factories) according to Ministry of Environmental Protection data.
The Ministry further found that the air quality in Jerusalem and Modi'in deteriorated, due to infrastructure and construction work in Modi'in and work on the light railway system in the capital city.
The air quality in Carmiel and Beersheva remained unchanged.
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11/02/08
Tax deductible mortgage payments

There has been a proposal passed in the Knesset (Israeli parliament) to
allow property buyers in the Israeli development towns located in the Galil
and
the Negev to deduct the interest on mortgage payments as a fully
allowable
tax deduction in order to encorage people to buy in those areas.This new
law, if passed ,will help boost the residential real estate sector in those
currently depressed areas.
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28/01/08
The question returns: rent or buy?

The gap between property prices and rentals in Israel makes the eternal
dilemma all the more pressing. So is it better to buy or rent? .
In recent months, more and more people, especially those setting up home
for the first time and young couples, feel that rising rentals coupled with
easy mortgage terms have created a situation where buying an apartment has
become more worthwhile, but....
Figures from the Central Bureau of Statistics and realtors reveal that
apartment prices in high demand areas have risen by up to 20% over the last
year and a half (with some exceptions where they rose even more), a rise
that has left many people now renting apartments bewildered.
This price increase makes their dream of buying an apartment ever more
remote, while the steep rentals they're now paying are using up the savings
that could have been used as a down-payment on their own homes.
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10/1/08
Latest trend for Israel's rich? A Tel Aviv house
Forget luxury high-rises or mansions in the suburbs; find an architectural gem on a busy street in the center of town.
This is the latest request of the rich Israeli elite. The reason for this trend is that many of these people work in downtown Tel Aviv during the day and attend theaters, concerts,etc at night so it is convenient to be where the action is and not waist time commuting . Furthermore, acquiring and old historic house appreciates in time more than a regular home and it is also becoming a status symbol.
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10/01/08
Real estate slowdown in the Galil
According to a recent survey, 40% of the younger population in the Galil are thinking of leaving whilst only 7% of the same age group from the center of the country are considering moving north. This explains , to some extent, why for the past few years there is a marked slowdown in real estate activity in the Galil and relatively few home sales.City Mayors have called urgently to the Prime Minister to apply measures to try to curve this pessimistic trend.
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27/12/07
Bet Shemsh statistics
Population percentage according to age group out of total population of 69,500 inhabitants (2006)
Age %
0-17 52
18-44 31
45-64 11
65+ 6
Average monthly income in NIS (2005)
Men 6,738
women 3,697
Other data (2006)
Amount of homes: 15,280 units
Amount of private family cars: 6,432 Total amount of vehicles: 8,530
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19/12/07
Mapping Center to launch new national geography portal

The Mapping Center of Israel (MAPI) will launch a new website providing information about land, outline plans, maps, trips, sites, aerial images, and historical maps. The information will be for free and easy-to-use .
It will also provide additional information about blocks, parcels, and sections of land. Thus enabling land and property buyers to obtain information ahead of a transaction, saving on fees and reducing bureaucratic procedures.
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04/12/07
70% of Israeli apartments are owner occupied
In a global survey, Lithuania had the highest proportion of owner occupied apartments.
70% of Israeli apartments are owner occupied, 24% are rented, and 6% are assisted living facilities, key money, or other apartments
Among the countries surveyed, Lithuania had the highest proportion of owner occupied apartments - 94%, compared with 3% rented and 3% other types of residence.
Spain was in second place with 88% of apartments owner occupied, Portugal with 79%, and the UK with 70%.
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28/11/07
The Bank of Israel has left its interest rate unchanged for the month of December, keeping it at 4%.

The central bank apparently did consider lowering the interest rate by 0.25%, but opted to retain the rate at its current level. The interest rate gap with the US is expected to narrow if the US Federal Reserve lowers the economy's fed funds rate to 4.25%
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14/11/07
Architects to design public buildings against terrorism.
A new method of building secure sport stadiums and shopping centers will be announced this week in a U.K government campaign to ''to design out
terrorism''. The new measures will require reinforced steel structures supporting the buildings and its main entrances against suicide car bomb attacks as well as providing for extra emergency exits in case of massive evacuations ,etc...Welcome to Europe 2007!
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22/10/07
Israelis prefer to live near school over work - survey

Work proximity is a high priority to less than a quarter of respondents.

A recently conducted survey shows a change in Israelis’ residential preferences.
The survey of home buyers found that Israelis are prepared to travel long distances and sit in traffic to get to work in order to live in locations believed to have higher quality education.
Good schools are also important for high-income earners and the religious population : 63.1% of high-income earners and 64.4% of religious and charedi respondents cited good schools as a priority for picking their residence.
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08/10/07
According to a builder's survey conducted in Israel recently, the demand for new properties went up by an overall 50% during July-August 2007 over the same period last year (during the Lebanese war)From the overall increase, a 70% increase took place in Jerusalem & Tel Aviv whilst in the North 20%.This increase in demand reflects the positive economic indicators that the country is experiencing, namely: increase in economic growth ,reflected in turn, by a marked improvement in the people's purchasing power.
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16/09/07
These are the new purchase tax rates for a private home , the rates will be valid up until the 15/10/07

1) For an ONLY home from a purchase price of NIS 1and up to NIS 602,260 the rate is 0%
from NIS 602,261 to NIS 746,820 the rate is 3.5%, after NIS746,820 the rate is 5%

2)When an owner has MORE THAN 1 home: from NIS1 to NIS 746,820 the rate is 3.5%
from NIS 746,821 the rate is 5%

3)For an OLEH CHADASH:Up to a value of NIS1,127,190 the rate is only .5% after that amount it jumps to 5%
Note:for calculation purposes one takes the lower ceiling with the lower % then the next ceiling with the higher % and so on( not the higher % multiplied by the total purchase price.)
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04/08/07
there has been a 14% increase in the demand of window bars over the same period last year in Israel.The main reason for ordering was
-69% to prevent thefts
-31% to avoid children from falling off
Israel stands in 2nd place worldwide,for the demand of bars. South Africa 1st. After Israel comes:Russia,Brazil,Argentina, Nigeria and Mexico.
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20/07/07
Whilst the current Bank of Israel's interest rate stands at 3.75%pa, economists predict that it wil have to be increased by 1 to 1.25 points,(that is to a 4.75% - 5% level)by the end of 2007 in order to curve down inflation, due maily to the recent depreciation of the Shekel and the relative low cost of borrowing money reflected by the current low interest rate.(Perhaps a last chance to lock on fixed interest mortgages....?)
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12/07/07
There was a 21.5% increase in mortgages given by banks in Israel for the 1st 3 months of 2007 (a total of 5.6 billion NIS as compared to 4.6 NIS billion in the same period last year).The extra demand in home loans can be explained by the decrease in interest rates, lower unemployment levels and overall economic growth.Almost 80% of the amounts lent come from the 3 major banks:Mizrachi-Tefachot (including Adanim),Leumi and Hapoalim.
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27/06/07
Banks in Israel give mortgages for residential homes for up to 80% of its value and in rare circumstances up to 90%, whilst for commercial properties (shops, offices,etc) they tend to give up to 60% and in rare cases 70% of the market value.Not all banks that give loans for housing purposes also give for commercial acquisitions, so it is wise to check each bank individually.
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26/06/07
In 2002, foreign buyers invested a total of $US192 million in Israeli real estate.
In 2006 it soared to $US1.43 billion according to figures from the Bank of Israel.
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12/06/07
In 2002, foreign buyers invested a total of $US192 million in Israeli real estate.
In 2006 it soared to $US1.43 billion according to figures from the Bank of Israel.
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06/06/07
A new law has finally being approved whereby investors could build rental apartment blocks provided the developer rent the units for at least 25*years.
He will be allowed to enjoy the following tax benefits:
1) Depreciation on building from 5 to 20% yearly (according to his choice).
2)Depreciation expense can be claimed (offset) against all sources of income and not just the property in question.
3)the developer can sell without paying capital gains tax on the capital gain from the sale.
*He can sell before the 25 years are over provided the buyer has the same intention of renting the apartments
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27/05/07
Because of the devaluation of the US dollar, prices of properties experienced a downward fall in all areas of the country , for example :
In Tel Aviv by 11.3%
In Jerusaem by 5.5%
In Haifa by 12.2%
The trend at the moment is for homeowners to quote prices in NIS or to try to increase prices in Dollar terms in order not to loose money on the sale of their properties (specially those selling in order to buy from builders where prices are locked in Shekalim)
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13/05/07
New home sales up 7.5% in December-March
Two thirds of sales were in the Tel Aviv and Central districts

New home sales rose 7.5% in December 2006-March 2007, compared with August-November, to an average of 1,100 per month, the Central Bureau of Statistics reports
A third of the homes sold were in the Tel Aviv district and another third in the Central district. . Sales rose 2% in Jerusalem
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30/04/07
Plans are being made, though not fully approved as yet, to build 77,000 m2 (11,000 m2 commercial space and 340 apartments) 5 towers of 15 levels each, opposite the "Big" shopping center in the old Bet Shemesh area.One of the major obstacle to this massive project is the traffic it would create in that area given that the roads around it are not wide enough.
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28/03/07
Many professionals such as accountants, insurance agents, dentists,etc, are unaware that occupying a residential apartment and using it for business purposes needs an approval from the neighbors as well as from the local municipality ("shimush choreg").In addition the rates charged ("arnona") for business use are usually 6 times the normal rate and more often than not people are cought and have to pay retroactively.
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13/02/07
A recent study in Israel shows that around 73% of property buyers prefer a home with a garden as their first choice of purchase, this explains why dwellings with gardens are much more expensive.(because of the extra demand relative to the supply)
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26/01/07
The largest growth in purchases of Israeli real estate by Diaspora Jews in 2006 was neither French nor Americans, but people from the UK. An amendment to British pension laws offers the potential for much greater investment
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05/01/07
Whilst property prices in the center, north(Galil) and south(Negev) of the country remained stable for all of 2006, expensive suburbs of Jerusalem and Tel Aviv continued to see increases due to heavy demand.The price of Land on a per- apartment- basis in North Tel Aviv (affluent suburb) reached $260,000 last year.
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24/12/06
The Israel Institue of Surveyors revealed that prices of half dunam plots (500 M2) that Kibbutzim are selling to people wanting to build their own villas vary by as much as 10 times .Whereas in certain areas of the upper Galilee and the Negev they can sell for as little as $US20,000, in areas surrounding Tel Aviv they sell for $US200,000.
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07/12/06
The Jerusalem municipality finally decided not to build another 17,900 housing units in western Jerusalem(see NadlanTown news 19/10/06)in order to protect the existing green areas, instead ,it will build high rise apartment buildings, mainly at the entrance to the city from road No 1 and along Yafo Road, Hillel Street and sorroundings
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01/12/06
A study made by the Israeli Institute of Property Valuers state that homes that are located on busy streets are worth from 10 and even up to 30 % less than the equivalent dwelling in a quite street.In spite of this,not always being on a quite street is so advantagous...for example sometimes the residents put more enphasis on keeping a building in good shape located on a main road , whereas those on a quite street may openly hang their clothing on their porches or children may use the street as a playground to the detriment of residents that want to enjoy peace quite and cleanliness.(this usually applies to poorer neighbourhoods with lacking adequate infrastructure such as in some development towns or poorer suburbs in major cities) Therefore, it is worth inspecting a property for sale at different times of the day to assess the level of noise, traffic, etc.(Remember: not all major streets are noisy all day long so for limited budget buyers this could mean being able to afford a home in the area of their choice).
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22/11/06
The Housing Ministry is trying to get a new law approved whereby investors could build rental apartment blocks (similar to what exists in Canada and the US)
provided the owner/developer rent the units for at least 25 years , he will be allowed to sell and enjoy the following tax benefits:
1) Depreciation on building from 5 to 20% yearly (according to his choice).
2)Depreciation expense can be claimed (offset) against all sources of income and not just the property in question.
3)He can sell without paying capital gains tax on the capital gain from the sale.
Aside from the tax benfits that the investor will enjoy this will also represent good news for tenants who would like to rent properties for a long time, contrary to the norm in Israel today,(except for Amidar tenats)
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19/10/06
The National Building and Planning council decided to postpone for another 2 months (in order to study the matter
further) the decision whether to build another 17,900 dwellings in West Jeruslem.
The plan calls for 10,500 units near Moshav Orah (Reches Laban near the Hadasah Hospital-Ein Karen )
and another 7,400 near Moshav Bet Zait (HarCharet south of Mevasseret Zion)
There is a lot of opposition from environmental groups,etc. as expected.
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13/09/06
From the 1st of January 2007 capital gains tax on the sale of real estate (mas shevach) will drecease from 25% to 20% for individuals and most probably companies as well ( presently being recommended by the tax authorities to the lawmakers, after the law was passed for individuals only) .
This is in accordance with a national tax reform which included real estate tax laws. this law was to take effect in 2006 but due to beurocratic delays it will be implemented as mentioned above from the beginning of 2007.
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20/08/06
Average rent in prestigious neighborhoods(including RBS) and in city centers rose contrary to the nationwide trend

Average monthly residential rentals in the country fell 2.8% in the 2nd quarter of 2006 to NIS 2,341, from NIS 2,408 in the previous quarter.(source:Central Bureau of Statistics)

Average monthly rent per area : NIS (% change from last qarter)

Tel Aviv area 3,063 (1% decrease)
Jerusalem area 2,764 2% decrease)
Haifa area 1,826 (3.7% decrease)
Dan region 2,422 3.4% decrease)
Sharon region 2,603 (9.9% decrease)
South region 1,749 (4.4% decrease)

Ramat Bet Shemseh experienced an increase in rent prices due to heavy demand and lack of enough supply, specially of larger 5-6 rooms apartments and 7 room cottages
As a result prices rose up to 20% from the corresponding period last year.