Although an unlikely winner, Israel has emerged as one of the best performing property markets in the world today. According to Global Property Guide, house prices in the second quarter of 2010 rose sixth-fastest in a ranking of 36 countries.
Of the top six, four were rebounding from sharp price drops. So looking at the past two years ended in June - the last period for which there is data - Israeli real estate can be considered the strongest market, the news provider claims.
And there is a determination by officials not to fall foul of the problems which have besieged other real estate markets around the globe. Efforts are being stepped up to rein in the sector. The fear is that a property bubble could shake confidence in an economy that withstood the worst of the world's financial crisis.
In the span of months, the central bank has raised interest rates several times and the government is rallying to build new units in this land-strapped country. "The housing market has set off enough crises, and we're not going to let that happen in Israel," Bank of Israel governor Stanley Fischer said earlier this month.
- Thursday 21 October 2010