Former Minister Ayelet Shaked Predicts Housing Prices Will Rise

Former Justice Minister Ayelet Shaked, now chairwoman of the board at real estate company Cadan Real Estate, stated that she believes housing prices will not decrease and may only increase. She attributes this prediction to a 30% rise in construction costs, making price reductions impossible. Shaked expressed hope that the next government would address what she called a "terrible distortion" in worker wages, calling Israel the "biggest sucker in the world."

Speaking at a real estate conference, Shaked criticized Israel's reliance on Chinese laborers, whose daily wages can exceed NIS 1,600, compared to NIS 600 for Palestinian workers in the past. Despite the higher cost, she noted that Chinese workers are often twice as productive, leading contractors to prefer them for faster project completion and cost savings. Shaked found it unacceptable that young Israelis seeking to buy apartments are paying NIS 400,000 for Chinese labor.

Cadan Real Estate reported a strong quarter, selling 144 apartments across its projects, placing it fourth among real estate companies. This contrasts with previous periods where the company struggled with sales. Other industry figures, like Shmuel Salbin, chairman of Sela Real Estate and former director-general of the Ministry of Finance, viewed a recent interest rate cut as a brave decision that could stimulate the market by reducing financing costs for buyers and companies, potentially bringing investors back.