New Israeli mortgages soar to record highs



Israelis continue to buy homes in record numbers. The volume of mortgage loans taken out in Israel, in June, reached a record high – 11.6 billion shekels. Bank of Israel said Sunday.

This is more than 20% more than in May, which was a record in itself, and almost twice as much as it was borrowed in February 2020, on the eve of pandemic

According to the Central Bureau of Statistics, over the past year, property prices have already increased by an average of 5.6%.

Israel’s new government has listed lowering housing costs and expanding affordable housing opportunities among its key goals for the coalition.

Analysts believe that the main reason for the problem is the lack of supply in the housing market. The Israel Land Administration (ILA) does not provide new land for construction in an efficient or transparent manner, and despite the urgent national demand for more construction, the number of new homes being commissioned has actually declined every year since 2016.

Last week. Finance Minister Avigdor Lieberman said Israel should pay attention to converting tens of millions of square meters of unused office space into residential buildings to create new housing options.


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