In the midst of a global recession, drastic unemployment, and a non-existent peace process that could turn into an intifada, Israeli home prices are skyrocketing. Home prices are over 10-percent higher today than they were at this time last year, thus the Israeli housing market recently increased in price more than any other country’s housing market.
Then again, it might be a bubble and we could see prices plummeting in the near future, particularly if war and terror begin to plague the Jewish state.
Part of the reason is undoubtedly Europeans (particularly the French) buying property in Israel due to rising anti-Semitism back home. Apartments in and around both Tel Aviv and Jerusalem are often vacant a majority of the year, only inhabited when the European owners are in town for the holidays or the summer.
Separately but possibly related, Tel Aviv just scored the number ten slot on best party town. I can attest to that.
