Forbes ranks Israel #1 Real Estate Market in 2008

In April of 2008 Forbes.com ranked Israel the number one “up and coming real estate market” in the world.

Israel is a strange duck in the context of emerging markets, because there’s some argument as to whether it belongs in the ranks of fully industrialized markets. Tel Aviv, the nation’s leading real estate market, is still finding its legs following a late ’90s and early 2000s price slump. But macro conditions in Israel favor more wealth creation, as the economy has corrected its deflation problems and grown at a 5% rate for two years. It is projected to jump to 3.8% this year, according to the International Monetary Fund

It is this author’s personal opinion that even since the stockmarket crash in the US in October 2008; the real estate market here continues to remain steady.  Forbes rightly notes the recession in the early 2000s, but since 2004 prices have continued to steadily rise 15 to 20% annually.

To put it briefly by comparison; the majority of people who purchased in the United States in the last eight years since the millennium are now holding properties worth less than what they paid for them.  In contrast; those who bought in Israel at any time prior to now have increased their value; especially those who bought during the slump.

The real estate market in Israel continues to expand, in spite of the serious decline in the US and other world markets. For the most part Israeli banks did not enter into risky lending practices that caused the US crash and is still in a significant growth cycle.

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