MAR 28, 2024 JLM 81°F 03:13 PM 09:13 AM EST
Every fifth apartment sold in Israel is purchased by an investor

Investors continue to be a decisive factor in influencing real estate prices in Israel: every fifth apartment sold is intended for investment - all according to the chief economist at the Ministry of Finance. Eilat, Ashkelon, Harish and Sderot are at the top of apartment sales. 

After much public criticism from the current government in the absence of a serious work plan that will curb the rampant housing prices, three ministers (finance, housing and the interior) are currently considering a series of measures in the housing market to address the issue - one is raising property taxes. 

Real estate investors continue to lead the increase in the number of transactions and fuel the raging real estate market. According to a survey published by the chief economist at the Ministry of Finance, Shira Greenberg, every fifth transaction made in the real estate market last July was made by investors - their rate doubled compared to July last year, during which the purchase decreased. 

Last July, 2,600 apartments in Israel were purchased by investors - a figure 3 times higher than in July last year, and 80% higher than in July 2019. It should be noted that the low level of real estate transactions last July is explained by waiting for investors to lower the purchase tax. 

The survey shows that in the analysis of the leading cities in investor acquisitions last July, the cities of Eilat, Ashkelon, Harish and Sderot stand out, in a high ranking in relation to the number of residents in them. It should be noted that with regard to plowing, this is a resurgence of investor acquisitions in this city. Tel Aviv, Jerusalem and Haifa lead investors' purchases.

The survey also shows that investors tend to change their preferences - in a significant number of cities, preference has been given to buying cheaper apartments than in the past. In the segmentation of investor acquisitions by real estate taxation areas, the BS area stands out with a sharp increase in these acquisitions, which amounted to 388 apartments, the highest level in this area since the historical record level recorded in June 2015.

Compared to July last year it is a sharp increase of 222%. 2019 is an increase of 133%. Investors' sales in July amounted to 2.6 thousand apartments, similar to the number of apartments purchased by investors. last year. The survey shows that in July, a total of 13.1 thousand apartments were purchased (including government-subsidized apartments, etc.) - an increase of 35% compared to July last year and a decrease of 5% compared to the previous month.

These data coincide with the latest housing price data published by the Central Bureau of Statistics - housing prices in June-July 2021 increased by 8.0% compared to the same period last year.

 

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