In tiny Israel, everything seems to be writ large. We have one of the highest numbers of symphony orchestras per capita, the greatest number of hi-tech start-ups in absolute terms and an effervescent property market.
HEFTSIBA PURCHASERS ignored the protection given to them by law, succumbing to the salesman's lures by diving into the pool without checking the water.
Photo: Ariel Jerozolimski
In Israel's 21,000 square kilometers, between 100,000 and 120,000 homes change hands yearly. Most of the apartments that are bought are second-hand sales and about one-third are in newly constructed buildings.
Israeli building companies invest approximately NIS 36 billion in construction, two-thirds of which is in the residential market. In fact, the construction industry contributes over 12% of the gross national product and employs several hundred thousand workers. To grasp how big an industry it is (in Israeli terms) one needs merely to look at the number of professional and semi-professionals directly involved: between 5,000 and 8,000 real estate agents; approximately 8,000 architects and about 9,000 registered building contractors. (The subject of registered contractors and why it is important to work only with contractors registered with the Registrar of Building Contractors will be the dealt with in a future column.)
It is not really surprising that the residential property market is so active. Quite apart from the large influx of foreign buyers, steadily growing from year to year, Israelis themselves are very active in the market. For Israelis love to be home owners; 72% own their homes, one of the highest homeowner rates in the world. Just take a look at other major countries to make a comparison: the home ownership rate in the US is 68%, in Britain 69% and in France 54%.
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