The PJ Tatler

The New Beverly Hills

Property values may be down, down, down in Brentwood and Beverly Hills, but they have a replacement:

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.

What’s the price of a good condo with a view of the Wall?