Netanyahu hails 'tremendous achievement' as property prices stabilize
According to data gathered by the Central Bureau of Statistics (CBS), presented at Sunday's cabinet meeting, property values have started to stabilize in recent years after a decade of rising prices.
By EYTAN HALONIsraeli Prime Minister Benjamin Netanyahu gestures as he chairs the weekly cabinet meeting at his Jerusalem office December 15, 2019(photo credit: GALI TIBBON POOL/REUTERS)
Prime Minister Benjamin Netanyahu hailed a “tremendous achievement” for his government on Sunday as he presented statistics showing the stabilization of the country’s property prices.According to data gathered by the Central Bureau of Statistics (CBS), presented at Sunday’s cabinet meeting, property values have started to stabilize in recent years after a decade of soaring prices.In 2018, property prices fell by a total of 1.3%, according to the CBS. Between January and August 2019, prices increased by a total of 2%. Prices soared by approximately 80% over the last decade in real terms.“When Finance Minister [Moshe] Kahlon took office almost five years ago, he sought to take the matter under his leadership, and we set a series of tools at his disposal to carry out what was then perceived as unattainable – to halt rising housing prices,” said Netanyahu.“What happened here is a tremendous achievement for our government, for you minister, and for the team that worked with you. Stabilization. There has been a very steep rise in housing prices, and about three years ago there was a flattening out, that even if the media tries, it cannot ignore.”The real cost of newly-constructed properties decreased by 2.5% in 2018 and by 4.6% by August 2019, CBS data showed.For the first time, the Ministry of Housing and Construction said at the cabinet meeting, the country met its multi-year construction targets in 2019. Construction has begun on 52,000 properties this year, according to data presented by the ministry.According to a long-term strategic construction plan published by the Prime Minister’s Office in 2017, seeking to ensure adequate housing for Israel’s rapidly growing population, a total of 52,000 properties must be constructed annually between 2017 and 2020. The construction of 67,000 properties per year will be required by 2036 to meet soaring demand.
