Large hikes in world commodity prices, especially oil, will begin to have a negative effect on local real estate prices, said Erez Cohen, the chairman of the Real Estate Appraisers Association of Israel.
The rise in commodity prices is having a very negative effect on the world's economy. The dramatic price rises in oil, foods and metals have made life more expensive and has resulted in inflationary pressures all over the world.
In the first quarter of 2008 the annual inflation rate in the US was 4.2 percent, in the UK 3.3%, in the Euro area a record 3.9% and in Israel 5.4%. Inflation is above target in most countries of the world, widely attributed to the rise in the price of basic commodities.
Thursday, June 26, 2008
Sunday, June 22, 2008
Africa Israel in early talks to sell properties
Shares in Africa Israel Investments were down 2.6 percent at 1256 GMT, compared with a decline of 0.6 percent in the broader market. Shares in Africa Israel Properties were up 0.2 percent.
The Globes financial newspaper had reported that Africa Israel was in talks to sell all of its shopping malls in Israel to the Azrieli Group for 1.7 billion shekels ($506 million).
The Azrieli Group, controlled by Canadian businessman and real estate developer David Azrieli, owns several shopping centres in Israel.
The Globes financial newspaper had reported that Africa Israel was in talks to sell all of its shopping malls in Israel to the Azrieli Group for 1.7 billion shekels ($506 million).
The Azrieli Group, controlled by Canadian businessman and real estate developer David Azrieli, owns several shopping centres in Israel.
Sunday, June 15, 2008
Foreign investors enjoy several tax breaks in real estate.
In several situations, Israel presents a tax shelter, and can even be considered especially suitable, for foreign investments in Israeli real estate.
Every country is interested in attracting investments. The goal of the Israeli legislator to encourage investments, especially foreign investments, can be seen over recent years, when there has been a marked upward trend in the numbers of investments and real estate acquisitions by foreign residents in Israel.
Every country is interested in attracting investments. The goal of the Israeli legislator to encourage investments, especially foreign investments, can be seen over recent years, when there has been a marked upward trend in the numbers of investments and real estate acquisitions by foreign residents in Israel.
Monday, June 09, 2008
The Falling Dollar: New Trends in Israeli Real Estate Contracts
As the Israeli shekel strengthens against the US dollar, real estate transactions in Israel are now frequently quoted in Israeli shekels rather than in US dollars, as used to be the case.
How does this trend affect Israeli real estate contracts?
When the US dollar was on the rise, rather than the shekel, contracts were usually quoted in US dollars and sellers would get more shekels for their apartments as the dollar rose. Foreign purchasers did not lose out as long as they converted their dollars on the day of payment. The only losers were those purchasers who were holding Israeli currency. As the dollar exchange rate rose, they needed to find more shekels to make their payments.
How does this trend affect Israeli real estate contracts?
When the US dollar was on the rise, rather than the shekel, contracts were usually quoted in US dollars and sellers would get more shekels for their apartments as the dollar rose. Foreign purchasers did not lose out as long as they converted their dollars on the day of payment. The only losers were those purchasers who were holding Israeli currency. As the dollar exchange rate rose, they needed to find more shekels to make their payments.
Sunday, June 01, 2008
Africa-Israel plans to raise $150-200 million in a public offering
Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY), controlled by chairman Lev Leviev, published its consolidated financial report for the first quarter of 2008 on Friday. The company posted a net profit of NIS 125 million (NIS 0.96 per share), down 80% from the NIS 746 million for the corresponding quarter of 2007.
Revenue from regular operations fell nearly two-thirds to NIS 465 million for the first quarter from NIS 1.23 billion from the corresponding quarter, which included NIS 645 million in fair value on investment assets. Profit from real estate developments fell to NIS 122 million for the first quarter from NIS 922 million for the corresponding quarter.
Revenue from regular operations fell nearly two-thirds to NIS 465 million for the first quarter from NIS 1.23 billion from the corresponding quarter, which included NIS 645 million in fair value on investment assets. Profit from real estate developments fell to NIS 122 million for the first quarter from NIS 922 million for the corresponding quarter.
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