The cumulative yield on investment in Tel Aviv Stock Exchange (TASE) was 665% between June 1991 and June 2009, beating the cumulative yield of 613% for real estate over the same period, according to a study by Yashir Investment House Ltd. The average annual yield on stocks in this period of 12.3% edged the average annual yield of 11.9% on real estate. The cumulative yield on short-term deposits was 333%.
The analysis took as its baseline the average price of an apartment of NIS 236,600 in January 1992 and assumed a conservative annual return on investment of 4% from rental income, taking into account that the apartment would be empty at times. The analysis also assumed that the rental income would be reinvested in real estate.
Read Roee Bergman’s full article “Narrow Victory for Stocks Over Real Estate” in Globes (September 18, 2009).