ACBI president Aharon Cohen: Taxes in Israel account for 41% of the price for a new apartment
Guy Yamin 6 Nov 05 13:23
A study by BDO Ziv Haft for the Association of Contractors and Builders in Israel (ACBI) found that an Israeli wage-earner has to work 9.3 years (112 months of full-time work) to buy an average apartment. The calculation was based on Central Bureau of Statistics figures for the average net national wage and the average apartment price.

ACBI president Aharon Cohen said it was unacceptable that Israeli wage-earners had to wait almost ten years to buy an apartment, whereas their counterpart in developed countries like Canada and France had to wait far less. He said, “Taxes in Israel account for 41% of the price for a new apartment, so it is no wonder that apartment prices in Israel so high, compared with the world.”

The study found that the ability of wage-earners to buy an apartment has worsened since 1990, rising from 6.6 years of work (80 months of full-time work) in 1997, to a peak of over 11 years in 1997 (134 months of full-time work).

Published by Globes [online], Israel business news - www.globes.co.il - on November 6, 2005

Last Updated: 07-11-2005