Last year price increases were recorded in three cities that are centers of attraction for rent - Tel Aviv, Beersheba and Haifa. Surveyed other cities in our survey actually recorded on the other hand price stability. This stabilization trend begun last year, after several years of steep price increases made it very difficult for tenants.
Trend in rents next year will be determined largely by interest rates - that estimate the market active. If interest rates rise, investors will try to raise the rent to cover mortgage payments and their sizes. If they will not succeed in that, may seem an increase in the supply of dwellings for sale and a decline in their price.
Tel Aviv municipality's war housing splitter reduced the supply of small dwellings and led to price increases. Larger apartments also increased rental prices, partly overcoming the phenomenon of young families who want to live in the city, but can not afford to buy her apartment.
Price increases in Haifa and Be'er Sheva is not surprising. These cities observed a run of investors on the cheap apartments are stable demand from a quality audience of students. Following the high demand for housing prices rose, prompting investors to raise rents to keep the high returns they expect.
Investors currently seem Haifa and Beer Sheva can still raise prices due to the low starting point of the rents that allows room to maneuver. However, in Be'er Sheva have already started Ahstondttim protest rents immigrants quickly, time will tell if they can stem the trend of price increases.
Other towns, as noted, the rental prices remained stable. Among other things, this trend is attributed to the entry of investors to cities such as Jerusalem, Herzliya, Rehovot and others, which increased the supply of housing investment contributed by lowering rents.
