What's Expected in 2007?

2007 Forecast

For preferred assets in Zichron Ya'akov (near H'moshava center, attached to ground, with sea view, new and unused construction, private land) we estimate the costs   raising we experienced on 2006, at around 5 to 10 percents. The costs of lands and rent fees were raised at a double rate and more. Despite this, the demands kept on growing. Zichron Ya'akov is representing a region real estate standard which causing the estates prices to rise all over the region, for example, Binyamina, Givat Ada, Pardes Hanna, Carcur, Bat Shlomo and the Carmel's coastal communities.

The ability to predict, as we know, was given to the fools since the temple destruction and still, anyone who is considering purchasing an apartment, a house or a land at Zichron Ya'akov's region wants to know if now's the best time to invest their fortune and their future incomes.

2006 was an amazing year. Despite the war that took place here in Israel, the ongoing war in Iraq and the war in Afghanistan, and despite the evolving Iranian threat, we completed 2006 with one of the best data we ever knew. The world's economy is growing. The western world has high growing rates, and the third world has an even higher growth of rates.

The US stock markets had high growth rates in the year 2006, and in Israel- even higher. The public investments files, the same public who purchase houses or lands, were significant increasing.

The US interest is still very law, and in Israel- even lower then the US.

The inflation is poor and the dollar rate is low. Judging by the decreasing dollar rate versus other currencies, it is possible that the last word hasn't been said yet.

Foreign investments in Israel are higher then ever.

The new and unused apartment's inventory is low, historically wise.

The Israeli population keeps on growing faster then the rest of the western population.

The number of the divorcing couples (yes, this data effects the demand for apartments) continue to be high, which means a standard family (two parents and two children) sometimes live in two apartments instead of just one.

The attractive employment market has a direct effect the demands around Zichron Ya'akov's region- like the High Tech market- it is now raising again.

When looking forward we understand that parts of the good news affecting the demands are still to come. The 18 section of road 6 is planned to be open for the public's use in two years, which will then have a significant influence and will make the the ride from Zichron Ya'akov to the Ben Gorion airport, Jerusalem and the south - shorter. The Carmel tunnel, which is due to launch this month, will also make the ride significantly shorter from Zichron Ya'akov to the employments zones and shopping and entertainment centers at Haifa's bay. The exit located near the Grand mall will make the ride to the city center shorter. It seems like the reopening of a new train station to Zichron Ya'akov, near Sonol's gas station (road number 4, also known as the old Tel- Aviv and Haifa road) is just a matter of time, and we expect that eventually this station will become the region's station, and will replace the already over occupied train station in Binyamina. The developing has already began at the commercial area near Zichron Ya'akov's train station, the same area planned for building a clean and light industrial zone like High- Tech offices, which will provide more attractive employment opportunities near by. The education in Zichron Ya'akov, which already considered very well, will get upgraded with the opening of a new high school in Zichrov Ya'akov's itself, in 2007, which means the Zichron Ya'akov's pupils will be able to get education in Zichron Ya'akov, from first grade to senior year- a solution many of the parents hoped for.

Israel is a land of many surprises, and any forecast that is given here can be proven as false with surprises regarding the security issues, the tax issuses or the policy- either local or national. It is hard to improve, though it is easy to destroy, and still, the real estate market in Israel on the year 2006 has provided high demands and new records in Tel Aviv and the Dan region, high demands for prestigious towers, a significant portion for foreign purchases in Jerusalem, Tel Aviv and its surroundings and close to the coastline. More and more of those who can't afford their dream house in Tel Aviv and Ha'sharon area arrive as purchasers to Zichron Ya'akov and its surroundings. Those purchasers are willing to drive up to 45 minutes, sometimes even more, to their work place each morning, as long as they purchased a house hundreds of dollars cheaper then other areas such as Kfar- Shmaryahoo, Hertzellia and Ramat Hasharon. Many of the Anglo- Saxons who purchases a second house in Israel finds Zichron Ya'akov to be their favorite area as well as the most affordable. The non thawing lands policy at Zichron Ya'akov is making the lands supply limited, and as long as the demands will continue to be as high as now, we predict that the raising costs movement on 2007 will continue, at list at the same pace as 2006. The contractors' unionization, by the way, is predicting the same national trend for the demanded areas in Israel on the year 2007.