Real Estate In Israel And More

Property prices have always been high in Israel but lately, immobilier israel has witnessed more price hikes than ever. When a country has a large political area along with a smaller population property prices can be relatively lower. Instead if the country has a small area and large population, property prices can be much higher. Now considering Israel being a small country, the property prices were destined to increase eventually. Now to own property in Israel, individuals often have to take up loans, much like anywhere else on the globe. But the prices are practically so high compared to their earnings, that it takes a considerable amount of their lifetime to pay back for a very small house.

The biggest reason for these high prices is that most of the land in Israel is owned and controlled by the government. Relatively, privately owned land is in clear minority. The government in its bid to control the prices does not allow much of the land to be owned by native individuals, let alone foreigners. Sure, there are properties owned by foreigners but insignificant in comparison. Hence the high prices and also the high frequency of mortgages owed by the people.

Instead of direct sale of the state owned land, the government still allows for it to be leased. There are different institutions under the government wing that lease land to different sections of the society. For instance, there is a different institution for leasing land to Jews that leases land only to the Jews in Israel. On the contrary, there is no restriction on the privately owned land. Individuals are free to sell their land to any individual they wish, be they Israeli or not. Most of this private owned land is present in the urban areas and has a very high demand.

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