Minister Smotrich noted the challenges he will face as Minister of Finance in the field of housing: “Our challenge in the coming years is to maintain the pace of construction starts despite the drop in prices, the rise in interest rates and the drop in demand. To do this we will have to address the credit difficulties for entrepreneurs and contractors, simplifying and shortening the planning and licensing procedures and maintaining economic viability in the peripheral areas. You will already see these steps in the Settlements Law and in the upcoming budget.”
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Last week, Gil Befman, Bank Leumi’s chief economist, and Dodi Reznik, the bank’s interest rate strategist, estimated that the moderation in the rate of increase in apartment prices has only just begun and will continue into the year when prices can be expected to drop in the next two years.