New Policy in the Housing Market: Tax Benefits for Institutional Investors
The real estate market in Israel has been undergoing significant changes recently, as the state re-examines ways to encourage investment in housing. While many private investors are dealing with high taxation, the government is currently granting significant tax benefits to business entities that choose to invest in the rental market.
The benefits are primarily intended for limited companies and investment funds that purchase entire buildings with the goal of renting them out to the general public. The main goal of the move is to increase the supply of long-term rental apartments, thereby assisting citizens who cannot afford to purchase a home of their own.
On one hand, experts argue that this is a positive step that could stabilize rental prices and provide security for tenants. On the other hand, some criticize the policy, claiming that it creates inequality between large investors and private citizens who wish to purchase a single apartment for investment.
As of now, the government continues to promote this model as part of the national effort to solve the housing crisis. In the coming weeks, further discussions are expected to be held in the Knesset to examine the impact of the policy on the market and on housing prices across the country.