30% of home purchases since 2008 for investment

An 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, report says.

By GUY KATSOVICH/GLOBES
November 21, 2011 05:56
Apartment in Tel Aviv

Apartment in Tel Aviv 311. (photo credit: Courtesy)

 
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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.

An 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.

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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.

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