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Israel immigration is fuelling a housing shortage and rising prices

Israel is anticipating a surge in immigration from Europe this year after terrorist attacks in France and Denmark, a development that would complicate government efforts to slow the growth of property prices in the country.

Prime Minister Benjamin Netanyahu urged European Jews to move to Israel following the shootings at a kosher supermarket in Paris in January and an attack in a Copenhagen synagogue last month.

As a result, Eldar Real Estate Marketing, a company that represents 70 residential projects across Israel, this year increased its overseas roadshows to as many as four a month to tap an increase in demand, led by France and Belgium.

“We expect to see more interest coming from communities in other European countries if the anti-Semitic situation worsens,” said Dan Gingis, head of Eldar’s foreign residents division.

Home prices have also been fuelled by low borrowing costs and increased by around 90% between 2007 and 2014 according to the Central Bureau of Statistics.

The number of western Europeans who moved to Israel almost doubled last year to 8,919, according to data compiled by the Jewish Agency, which handles immigration. That was the third straight annual increase largely driven by French Jews (80%) that are worried about the rise in popularity of the French National Front party. Israeli immigration officials expect French arrivals in 2014 to more than double for the second straight year, to about 15,000.

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