A recent study by three prominent economists in Israel finds that taxation prompting investors to sell their properties does not aid in reducing housing prices. On the contrary, it may lead to an increase in housing and rental prices. The researchers highlight that when investors are active in the market, they participate in early sales and assist developers in securing financial backing, thereby increasing market supply. However, the Ministry of Finance criticizes the study, claiming it is based on unverified assumptions. In Israel, real estate investment is seen as a religious duty, and high taxes have driven investors to seek opportunities abroad, potentially encouraging emigration. Despite these findings, the Israeli market reality shows an abundant supply without buyers and declining prices, contradicting the study's results.
