Developments in Residential Land Prices, 1998–2012
The Bank of Israel Research Department has developed an index for the yearly changes in the hedonic prices of residential land - the changes after accounting for the characteristics of the land.
- A new index developed by the Bank of Israel Research Department provides estimates of developments in land prices in Israel, excluding characteristics such as location and land area, and provides separate indices for the center of the country and the periphery.
- According to the index, between 2006 and 2011, the price of land sold by the Israel Land Administration (per residential unit in high density construction) increased by about 30 percent, with a marked difference between the center of the country (close to 60 percent) and the periphery (about 15 percent). In 2012, land prices declined.
- The marked increase in land prices in the center of the country is in line with the sharp increase in home prices there.