As a real estate agent working in Jerusalem, I often hear the same questions from clients: “With all the construction happening, will there be too much supply? Are we heading for a market correction? Is it risky to buy now?” These are smart, responsible questions, and they deserve honest answers.
In the recent months I’ve received many calls or inquiries for 3-4 bedroom rental properties in Rehavia, Baka, German Colony, Katamon, etc. Unfortunately the rentals in Jerusalem are few and far between these days. When potential clients call me, I try to explain the situation with the following reasons:
Due to the war, interest rates have gone down, making it more feasible for those who couldn’t buy, now to jump into the pool of those looking.
Most people would assume that when Israel is at war, stay away from real estate, but in actuality it’s the exact opposite, and I’ll tell you why.
Until a week ago, if you bought a new property on paper and you went by the 20/80 payment schedule, you got screwed by the ‘cost of building index.’ Let me explain. ‘The cost of building index’ means that if the materials of a building being built were increased, such as wood, metals, tiles, etc., the buyer carried the burden of paying that extra cost. In a standard 150 sqm apartment, this meant...
As we see the light at the end of the tunnel and the new road to and from Efrat is being completed, as we speak, we also see the increase in prices in the various communities in Efrat. If prices in the older sections, such as Gefen, Rimon and Teena were between 8,000 to 10,000 NIS per sqm up to a year ago, we see now that the prices are already going up to around 12,000 to 13,000 NIS per sqm. Of course...