It's global problem (prices in Poland rocketed by some 60% last year and some 200% last four years).
If I had to guess, I'd say it's global speculation after developing markets stabilized (and do not give 50% interest / year anymore) and investments in China/India are already done. It's not possible that in so many countries prices are going so high in such short period.
Now developers have some 50% interest from investments on apartment market (what more, they do risk nothing, as you have to pay 10-50% before construction starts and the rest before it ends).
I don't know what are non-speculatation factors for prices rising in Israel. In Poland cities do not sell (or rather lend) municipal ground for apartments' developing in hope to gain more next year (and it continuues for almost 10 years here), so the land for apartments is very deficit good here.
But I'm still against prices regulation. It's against contitution protecting any private property (the private property protection is virtually in every constitution). Well, Israel has not constitution, but you have well shaped and executed law. |