This professional critique focuses on the rise in apartment prices according to the Central Bureau of Statistics data, examines the reasons for the rise, the effects on the market, and discusses possible ways to deal with the changing reality. While "seniors" in the real estate industry claim that: "Nothing shakes real estate, it demonstrates resilience, stability, and strength," the clear professional truth, which requires an outcry, is completely different and is: "This is evidence that this is not a free market, evidence of the intensity and depth of the manipulation and the extent of the control and power of the manipulators and the coordination actions that regulate the market."
Professional criticism: The rise in apartment prices according to the CBS – an appearance of stability in a centralized and regulated market
The Central Bureau of Statistics announced that apartment prices rose by 0.9% in January-February 2025, and by 7.5% compared to the same period last year. However, a critical and in-depth examination of the data raises fundamental questions about their economic significance, their reliability as an indicator of a free market, and most importantly, their relevance to understanding the true state of the real estate market.
1. The transactions measured represent price – not value
- The housing price index is based on transactions that were actually carried out, but does not consider the economic feasibility of the transactions .
- In a reality of stagnation, very low transaction turnover, and a limited scope of an active market - any unusual transaction, for example a luxury apartment in Tel Aviv or an apartment in an aggressive marketing campaign, distorts the overall picture.
2. Geographic segmentation – significant distortions
- The districts with sharp increases – North (1.8%) and Tel Aviv (1.5%) – are also areas where the number of transactions is very small. This means: significant statistical deviation and high sensitivity to edge transactions.
- The Central District actually recorded a slight decrease of 0.3% - evidence that the trend is not uniform and does not present a stable picture of "increases."
3. New apartments – not really more expensive
- The CBS reports a 1.0% increase in new apartment prices, but does not take into account benefits, smart discounts, creative financing, and transactions with contractors that are made in non-transparent ways. The reported price is only official – not necessarily what was actually paid.
- This market suffers from an "imaginary price" bias, a result of manipulative marketing that inflates the tag price.
4. An annual increase of 7.5% – contrary to economic reality
- The data ignores clear macroeconomic factors: high interest rates, economic recession,
