The Jerusalem Real Estate Market:
Insights from Pesach 2023
Welcome to our latest market update, focusing on the state of the real estate market in Jerusalem straight after Pesach 2023.
As we sit at a great time in the market, it's worth examining the factors driving the demand for properties in our unique neighborhoods.
One of the key driving factors is Jerusalem's international appeal as a real estate hub. Foreigners from all over the world are pouring in, eager to get a foothold in the Jerusalem real estate market.
For Jewish people in particular, owning property in Jerusalem is a long-held dream, and with political uncertainty on the rise, this desire has only intensified.
As people approach retirement age, they are increasingly looking to make the big move, with the political uncertainty in America serving as a significant push factor for many.
Another factor driving demand is the belief that Jerusalem real estate is a good place to put money. Many investors see owning property in this area as a secure and stable investment, particularly as interest rates in Israel are lower than in America.
Whereas in America, people are borrowing fixed-rate long-term loans at around 6 to 7%, in Israel you can currently borrow at fixed rates for 25-30 years at under 5%.
Supply & Demand
Despite rising interest rates and inflation, I personally have not seen the demand slow down.
In the prime areas where we work, such as the German Colony, Rehavia, and Talbiya, the market is moving quickly and demand is strong.
So, what happens when the market takes a hit? Historically, transactions slow and stabilizes, but prices historically do not take large drops. However, I don't personally anticipate any market price drops in the prime areas of Jerusalem where I work as the demand is simply too strong.
There is a limited supply of prime properties in Jerusalem, and if you're looking for something specific, there aren't many options. This is unlikely to change anytime soon.
The demand for real estate in Jerusalem remains strong, driven by a combination of factors, including international appeal, world uncertainty, and the belief that it is a good place to invest money.
Interest rates in Israel are lower than in America, and despite inflation and rising interest rates, the Jerusalem Anglo market shows little signs of slowing down.
The prime areas of Jerusalem have an extremely limited supply, which makes the tick-all-box units highly sought after by investors and homebuyers alike.
(This article is not data-based but rather based on CapitIL’s CEO & Co-Founder Ben Levene’s personal market experience and opinions. No decisions should be made without thorough due diligence and professional financial advice.)
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