Israel has emerged as the top real estate market in the world, despite being located in the Middle East, where it faces a constant threat of war.
Global Property Guide, a U.S. trade magazine that watches the worldwide housing market, says real estate in Israel has been the strongest for the last two years since the global housing crash in 2008.
Israeli housing prices in the second quarter of 2010 rose sixth-fastest in a ranking of 36 countries, according to the magazine. Four of the top five, including Singapore and Latvia, were rebounding from sharp price drops.
Israeli officials say they won't let a housing crisis hit their country. They have seen ample evidence of how an imploding bubble can shatter decades of economic growth.
Amid the worldwide economic downturn, Israel has stood firm, shielded in part by the fact that its property price gains were late in coming. While many countries were on a property high during the middle part of the decade, its market was largely stagnant.
Also, Israel's financial market is not intertwined with the mortgage market - the main reason for the U.S. housing meltdown.