The Israeli housing market ended 2023 in a deep recession.
The number of apartment purchase transactions has sharply decreased, and interest from foreigners who fear anti-Semitism in their countries has not yet turned into purchases, according to the chief economist of the Ministry of Finance.
Is the Israeli real estate market starting to recover after the tragedy of October 7 and the war in the Gaza Strip? Developers claim that the recovery is taking place, but the data so far suggests otherwise. Judging by the latest report of the Ministry of Finance, there was indeed an improvement in November compared to October. 4,133 apartments were bought, which is 85% more than a month earlier, when the disaster broke out, although this is still less than half the monthly average for several years. In total, about 70,000 apartments were sold in 2023, which is the minimum for the last 20 years. The resulting figure is the result of high interest rates on loans combined with the national trauma caused by the war.
Developers and realtors report a sharp increase in the interest of foreigners in buying apartments in Israel due to the growth of anti-Semitism around the world. Indeed, there are signs that more and more Jews are inclined to immigrate to Israel and perhaps even to buy a home here, but the distance from this point to the actual transaction is great. In November, foreign citizens bought only 77 apartments, which is 48% less than in November 2022.
Source: Globes
