Globes newspaper considered 2023 to be the worst year for the real estate market in… Israel Since the second Palestinian Intifada in 2000, after adding data from last December.
This Israeli newspaper specializing in economics adds that the data denies the claims of Israeli real estate developers that there is a recovery in the market, despite the fact that the latest report of the chief financial economist indicates some improvement last November, compared to the previous October, which witnessed the launch of the aggression against Gaza strip..
After what the newspaper called a “major wave of anti-Semitism” abroad, reports indicate that non-Israeli residents – whose religion the newspaper did not specify – are interested in buying a house in Israel, but this interest has not been translated into deals.
Based on the laws, immigration to Israel is available to people of Jewish origin, and they can choose between a number of temporary residence visas for different purposes, according to Israeli law firms on their websites.
According to data issued by the Finance Chief Economist, 4,133 apartments were sold in November, and although there is an 85% increase from what was recorded in October when the war broke out, sales are still less than half the monthly average recorded for several years, according to Monitor the newspaper.
Globes added that this decline in average deals comes as a result of higher interest rates, as well as the “national” shock of the war. Therefore, the number of transactions is likely to collapse to just 70,000 in December, the lowest in 20 years.
Reluctance of foreign residents
Real estate developers in Israel said there has been a significant increase in interest from foreign residents in buying apartments due to a rise in anti-Semitism around the world and harassment of Jews, in the wake of the war in Gaza, with signs that more Jews are showing interest in immigrating to Israel and perhaps buying apartments, but The newspaper says that between today and their actual purchase of apartments a long time passes.
Foreign residents bought only 77 apartments in November, a 48% decrease compared to the same month last year. On the other hand, they sold 39 apartments, so their total net purchases amounted to only 38 apartments, according to the data disclosed by the chief economist of the Finance Ministry, which cannot be attributed to a “change in trend,” according to the newspaper.
In the last third of last month, a report by the Israeli Ministry of Housing revealed a 15% decline in new construction operations, which indicates a stagnation in the real estate market that has put pressure on both supply and demand.
According to data issued by the Central Bureau of Statistics, while the demand for new and existing apartments continues to decline steadily, the supply side is also at a complete standstill, with a significant decline in construction operations. Last October, the number of apartment transactions fell by 54% compared to the same month in 2022, which the Jerusalem Post considered a worrying matter.
The report shows that the construction of 61,620 apartments was initiated from October 2022 to September 2023, a decrease of 14.4% on an annual basis. But the total construction work, after writing off the demolished apartments, amounts to about 57,650 units.
Globes reported that these numbers do not fully reflect the impact of the operation Al-Aqsa flood And the war on the Gaza Strip, which led to a greater slowdown in the construction sector since October 7, 2023.