Stability of the Industry -
The real estate industry is considered to be an extremely stable industry, and therefore, real estate investments are considered to very stable investments. When comparing real estate investments with investments in other sectors such as the capital market, we find that while the capital market is a volatile market with sharp ups and downs, the real estate industry enjoys stability and retention of the value of assets and real estate assets usually increase in value linearly.
Sticking with tangible assets
While investments in stocks and digital assets are investments in assets that are not tangible, real estate investments are tangible investments. That is: during this time, and in the midst of a global crisis such as the COVID-19 crisis, investors have a strong desire to stick with tangible assets such as real estate or gold, and this makes investing in real estate even more attractive than usual.
Reduction of land reserves in areas of demand
The high demand areas in the State of Israel are in Gush Dan, and it is evident that there are almost no significant land reserves for construction in this area. This makes real estate and land investments in the high demand areas investments with huge potential for appreciation. It is important to note that due to the increase in prices in the Gush Dan area, many additional areas have begun to be classified as high demand areas in which no significant land reserves remain.
Expected population growth
Social perceptions, the type of population that exists in Israel and the birth rate are just some of the reasons for the expected population growth in Israel. This means that we will have to establish additional neighborhoods that will include residential units and employment and commercial areas. This means that demand will remain high as a result of the expected demographic growth.
Continued strengthening of the Israeli high-tech industry
The Israeli high-tech industry continues to grow, international technology companies continue to establish development centers in Israel and Israeli companies continue to expand, leading to a constant demand for quality employment areas. All of these turn real estate investments for employment in coveted areas into quality investment investments.
Low risk investment
While investments in other sectors are considered high-risk investments, real estate investments are considered solid investments with a small to zero risk component. If you are a solid investor who wants to invest your money in a safe channel, investments in the real estate industry are fantastic for you.
A sure and attractive return
Real estate investments are investments with an attractive return. Following the rise in real estate prices in Israel, the properties enjoy an increase in value which translates into a significant return on the invested capital. Investments in other areas are investments that do not carry a definite return, and sometimes it is even possible to lose the investment capital.
Marketability and realization capability
Sometimes, assets may be excellent and valuable assets but do not have a quite significant selling market. The ability to liquefy assets is an important ability. We invest our money in assets and sometimes we need the money that we invested for other purposes. Thus, it is important to purchase assets that can be liquefied easily and have high marketability. Real estate investments are investments that meet these criteria due to the extensive activity in the real estate market by both investors and buyers for personal use.
Prospects of increased rights
Many real estate investments have a high potential for appreciation, regardless of the increase in property prices. For example, investment in land that is in the planning process often enjoys an increase in rights granted by the planning and construction committees. Such an increase in rights leads to a significant appreciation of the acquired property.