Less than ten years ago, a suicide bomber blew himself up at the Dolphinarium night club killing 21 Israeli kids on a Friday night. Today, a multi-million dollar high-rise is going up just on the other side of the street. Penthouses along the coast in Tel Aviv compare to those of Dubai, New York, Miami and Hong Kong; the biggest difference is they are selling and selling fast.

Prices in Israel have shot up faster in the past two years than anywhere else in the world. An unrenovated, 1000 sq ft apartment in an average area of Tel Aviv goes for $600,000. Prices in Jerusalem are going up too. From our bureau we can see five cranes; many working on buildings where prices start at $1 million.

With the technology boom creating Israeli millionaires faster than a falafel-maker churns out fried hummus and increased security bringing in Jews from Europe and America, the government here is trying to pour some water on the red hot market. They have learned from the U.S. and Dubai housing crisis. Interest rates are going up. Down payments. once set at 30%,  are now closer to 40% or 50% and sub-prime mortgages don’t exist here.