News Briefs

  8/31/2014, Elul 5, 5774

Report: Israeli Landlords Cleaning Up as Rents Jump

It remains to be seen if apartment prices fall when (and if) the 0% VAT plan proposed by Finance Ministry Yair Lapid is enacted into law, but according to a study by the Ministry, the fact that potential home buyers believe it will be put into effect has been driving down sales – and driving up rents.

Combined with the ongoing general increase in housing prices that is driving first-time homebuyers out of the market, the zero-VAT plan, the Ministry said, was responsible for a fall of at least 15% in the number of homes sold in June of 2014, compared to June of 2013.