In Professor Plesner’s article, ‘There in no Real Estate Price Bubble’, The real issue of whether the prices of real estate in Israel today are based on a stable market or not, is poignantly raised and answered. I found this article to be very informative. Plesner dissects the topic in an objective and most scientific manner. Below is a translation of that article in English. Enjoy!
There is no speculative building in Israel, the prices of rent are not unrelated to the price of the apartments and it is just as hard to purchase an apartment in 2013 as it used to be. The former deputy governor of the Bank of Israel proves that the prices of apartments are based on a solid economic foundation.
The matter of housing is still in the top headlines, and with reason. When people in their late twenties and even in their early thirties are living with their parents, there is a problem. However, there is a problem with the problem: the problem of identifying the nature of the first problem. We will deal with both of them here, and also discuss somewhat the connection between all this and the Bank of Israel.