30% of the homes bought in Israel between 2008 and 2011 were for investment purposes, according to mortgage consultancy firm AMG Group. The firm found that 218,000 homes were purchased during that period of which 131,000 were for investment, mainly bought by private investors.
The firm found that an average of 2,500 homes per month were bought for investment, and that 25% of Israeli householders are living in a property rented from private owners. The survey also found that while home prices have begun to fall, there seems to be no fall in rental prices on the horizon. AMG found that the average rent in Israel has risen by 34% over the past six years and over 50% in Tel Aviv over the same period.
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.
Published by Globes, Israel business news - www.globes-online.com - on November 20, 2011
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