Apartment in Tel Aviv 311.
(photo credit: Courtesy)
Thirty percent of the homes bought in Israel between 2008 and 2011 were for
investment purposes, according to mortgage consultancy firm AMG Group. Some
218,000 homes were purchased during that period, of which 131,000 were for
investment, mainly bought by private investors, AMG said in a report.
average of 2,500 homes per month were brought for investment, and 25% of Israeli
households that are living in a property rented from private owners, the report
said. While home prices have begun to fall, there seems to be no fall in rental
prices on the horizon, it said.
The average rent in Israel has risen by
34% over the past six years and by more than 50% in Tel Aviv over the same
period, the report said. The average monthly rent for a three-room apartment in
Tel Aviv is NIS 5,300, well above the national average of NIS 3,103, it said.