On the one hand, the real estate field is dynamic and nothing can be guaranteed. On the other hand, now that we are at the beginning of 2021, we can say some things that are relatively safe, and after a very shaky year (including the real estate field), it is advisable to stop, straighten the line And understand what we are facing.
So is now, after a year that has been quite difficult. It is worth investing in real estate and purchasing an investment property, is there a momentum of construction and in general is it worth continuing to invest in the field as usual? We have collected for you a number of important answers:
It is important to understand that the real estate sector is affected by a variety of complementary factors: the employment situation, the level of prices, the construction boom, the market supply, the interest rate and available sources of financing. Demand for residential apartments remained inelastic, while the Israel Land Authority hardly marketed land for apartment construction this year, contractors slowed down all construction starts and due to the Covid-19 crisis, the average time to build an apartment was extended. That is, supply is declining while demand remains inelastic, which is expected to lead the housing market to further price increases.
2 parameters that change the equation
On the one hand, this year quite a few unemployed people were added to the unemployment cycle, so fewer people are interested in purchasing apartments. On the other hand, the demand for rent remained the same and even increased. It should also be noted that there are many households in Israel whose incomes have not been affected at all by the Covid-19 crisis and whose expenses have actually decreased due to the inability to spend money. The state has also decided to take the step of reducing the purchase tax rate, a move which is expected to bring many investors back into the housing market.
The most relevant options
Each year brings with it different trends for real estate investments. In 2021, we believe that the real estate investment trend will turn towards investing in lands that are about to be rezoned, purchasing office space for investment in areas sought by technology companies (which Covid-19 has led to strengthening), investing in joint work complexes, etc.
To sum up?!
No one really knows what the nature of real estate investments will be in 2021, but experts in the field believe that even in 2021 coming after a challenging year, real estate investments are still the most ideal option for a profitable investment. Due to the fact that this is an option that leads to a relatively high return, along with a relatively low risk, this is