Apartments in new buildings, according to CBS, rose in price by 1% compared to the previous two-month period and by 6.4% year-on-year.
Real estate prices in the country have been steadily rising throughout the year. Before that, there were several months of decline after the terrorist invasion on October 7, 2023.Several factors influence price dynamics: housing shortage, significant population growth, and growing foreign investment. All this creates prerequisites for an increase in the cost of apartments, despite the fact that the conflict hinders construction and undermines economic stability.
The rise in prices is surprising, as there have been fewer real estate transactions recently, and there are still a lot of unsold apartments on the market, Bank Hapoel economists noted.Perhaps this is partly due to the fact that prices for many new apartments do not always reflect the special financing conditions offered by developers, the bank said.
According to the Ministry of Finance, 7,416 apartments were sold in Israel in February, which is a relatively low figure.In December 2024, sales were particularly high, as buyers were rushing to complete transactions before the VAT increase from the beginning of 2025 to 18%.
Source: The Times of Israel
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