Get ready for some exciting news! If you’re in the market for Jerusalem real estate, you will want to take advantage of this. Believe it or not, now’s the perfect time to consider buying property in Israel. We’ll give you the inside scoop on all the compelling reasons why investing in Israeli real estate is a smart move right now. So buckle up and get ready to discover the incredible opportunities waiting for you in Israel’s real estate market.
Israel’s Current Real Estate Market
Regarding the real estate market, there’s been a low level of demand recently, which gives buyers the power to negotiate. Additionally, predictions of future price increases and the recently weakened New Israeli Shekel show that despite some challenges, there are several reasons to consider buying real estate in Israel in 2023.
Favorable Buyer Conditions Galore
Israel’s housing market has seen a considerably low level of demand in recent months, and due to this fact, many developers are left with vacant properties. It’s a stark contrast to previous years (such as in 2022 when there was a flourishing real estate market and apartments were high in demand). Once the bank of Israel continued to increase the interest rates, mortgage owners struggled to meet the payment demands. Some of these reasons are why experts predict we’ll be heading into a buyer’s market soon. The lack of buyers in the market has resulted in a power shift to buyers. So if you are looking to buy a property, get you’re bargaining skills up to par because you may have the upper hand.
Additionally, developers are under pressure to sell units due to inclining financial costs. Reports state that the average time to sell a new apartment has risen from 10.9 months to 19 months. And developers are beginning to panic.
Although you may have the power now, the market isn’t expected to stay the same since developers will likely slow construction, which may halt the excess apartment supply we have right now. Stalled construction may cause home prices to rise again, too. So now’s the time to consider buying Jerusalem real estate.
The Potential for Future Price Increases Loom
Although you have the upper hand now since the demand has been lower, the market isn’t supposed to stay this way forever. Developers are expected to slow construction, which may result at the end of the excess apartment supply we have right now. Stalled construction may cause home prices to rise again when the demand returns. Now’s the time to consider buying Jerusalem real estate and grab the opportunity to take advantage of lower prices.
The Weakened Israeli Shekel And The Strong Dollar and Euro
While the Israeli economy remains robust and continues to expand, the optimistic outlook fueled by the thriving high-tech sector in previous years is beginning to diminish due to the judicial reform’s effect on investors.
This point is highlighted in JP Morgan’s report, which concludes that there’s a rising risk for investments due to the proposed judicial reform. JP Morgan compared Israel’s raised risk to potential investors to Poland’s, as Warsaw’s recent judicial reforms impacted its allure to investors.
The shekel, the currency of Israel, experienced a decline to its weakest point in three years when compared to the US dollar and the euro, and in comparison to the dollar, which is trading at around NIS 3.88, up 0.9.
The weak shekel and stronger dollar and euro may create opportunities for buyers whose income is in dollars or euros to get more value for their money.
In conclusion, the current market conditions in February 2023 present a unique opportunity for prospective real estate buyers to invest strategically. With low levels of buyer demand, a buyer’s market has emerged, providing buyers with a wide range of options and the potential for good pricing negotiations. Moreover, the potential for future price increases presents the prospect of a substantial return on investment. Additionally, the weakened Israeli shekel provides foreign investors with an added advantage. Therefore, those who act now and invest in Israeli real estate could reap the benefits of this lucrative opportunity. Find out more about real estate for sale in Jerusalem by contacting Gov Ari Real Estate Agency today.