House prices in Israel have risen 10.3% over the past year, according to data released by the Central Bureau of Statistics on Wednesday. Last month, house prices rose 0.9%, according to the report.

According to the financial daily Globes, the surge in prices over the past year marked the largest such increase since 2010.

Prices in Jerusalem rose 11.5% last year; in Haifa and the south, 9.9%; in Tel Aviv, 9%; and in the north, 8.6%.

The statistics office also released data on consumer goods on Wednesday. In November, prices for consumer goods rose 0.1%. Over the past year, the cost of consumer goods rose 2.5%, compared to 2.4% in the same period last year.

Governments have long promised to lower steadily rising house prices for more than a decade. The exorbitant costs have put homeownership beyond the reach of many Israelis, weakening the middle class.

The reasons for the costs include tight supply, planning, tax policies and the large number of investors who buy multiple housing units.

In October, the government unveiled a major housing plan for 2022-2025, aimed at rapidly increasing the supply of apartments in the hope of lowering prices.

Finance Minister Avigdor Liberman said last month the government would close the gap between supply and demand in three or four years.

According to a recent study by the Alrov Institute of Real Estate Research at the Coller School of Management at Tel Aviv University, the average cost of a four-room (three-bedroom) apartment in Israel is $ 2.2 million. of shekels ($ 682,608), and the average price the equity required for a 30% minimum down payment and surrounding expenses were estimated to be around 840,000 shekels ($ 261,140).

In Tel Aviv, the country’s most popular and expensive housing market, the average price for a four-room apartment reached over 4,280,000 million shekels ($ 1,329,671) in the second quarter of 2021.

Earlier this month, Tel Aviv was ranked as the most expensive city in the world to live in.

Last month, the Bank of Israel announced a series of reforms meant to make the process of taking out a bank mortgage more transparent and competitive for borrowers.

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