"Today contractors see a slowdown in sales and this is felt in sales offices," said Danya Cebus Ltd. (TASE: DNYA) CEO Ronen Ginzburg.
He added, "But this is not what will lead to a fall in the apartment prices. People need apartments. They need to live somewhere. Developers bought land at high prices and they need to make a profit, they don't work for free."
Ginzburg was summing up a feeling that Israel's housing market has been cooling off in recent weeks. Ginzburg offers a familiar and simple tip for those wanting to lower prices. He said, "If they will bring here enough foreign workers, that will lower the price of building by 5-10%. That would also lead to a lowering of apartment prices."
Ginzburg's words come in the wake of the Population Migration and Border Crossing Authority's decision to grant entry permit to 2,500 Palestinian construction workers. 1,500 additional workers will probably arrive next month.
He said, "Danya now received 170 permits for Palestinians to work. It is welcome, but it is only a very small part of the solution.
Published by Globes, Israel business news - www.globes-online.com - on July 5, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011