This week, Dor Neuman was a guest on the main panel of the i24 Business Club for an in-depth discussion on the state of the real estate market in Israel. During the conversation, the 5 reasons why real estate prices will only rise were explained and analyzed. Real estate in Haifa
Table of Contents
Courtesy of the i24 business club
The 5 reasons why real estate prices in Israel will only rise:
The State
A decrease in real estate prices directly affects the state’s revenues, among other things by reducing tax collection such as VAT, purchase tax, and betterment levy.
The politicians
In practice, many of the politicians hold real estate assets themselves, which creates a conflict of interest and casts doubt on the extent of the real motivation to promote a significant price decrease.
The banks
The banks have no interest in a decrease in real estate prices, as most of the financing in the industry comes from them, and a sharp decrease in prices could harm the collateral and increase the level of risk in the banking system.
The population of Israel
The population in Israel continues to grow at a rapid pace, while the supply of land available for construction is very limited, a situation that makes it difficult to meet housing needs and increases the rise in real estate prices.
The bureaucracy in Israel
In the State of Israel, it takes 3 times longer to obtain a building permit than in any country in the Western world. The bureaucratic processes in Israel are very difficult and complex, which directly causes an increase in housing prices.
Additional source of information: The Central Bureau of Statistics
Looking for a smart real estate investment in Haifa?
The Ahuza team guides investors through every stage of the investment process – from sourcing to handover of the key.
What are the advantages of investing in real estate in Haifa?
A rental yield of 3.5-5%, appreciation potential, and low entry prices.
Is it worth investing in Haifa in 2026?
Yes, the market shows steady growth with low prices compared to Tel Aviv.
What is the difference between TAMA 38 and Evacuation-Construction (Pinui-Binui)?
TAMA 38 is faster (2-4 years), while Evacuation-Construction yields larger apartments but takes 4-7 years.
Last updated: April 2026
