Could was one of many weakest months for housing gross sales in Israel prior to now 25 years, based on the newest survey by the Ministry of Finance chief economist on the residential actual property market. In Could there have been 6,698 housing offers, down 16% from Could 2024. Gross sales of recent houses by contractors proceed to shrink with 1,720 houses bought in Could, down 44% from Could 2024, not together with 654 houses bought at a reduction in authorities backed packages.
The chief economist additionally discovered {that a} fall in builders’ purchase now pay later (20%-80%) presents continues. These declines started following the publication of the Financial institution of Israel’s restrictions on such operations, nevertheless, the falls should not evenly unfold in all areas of the nation. The report notes, “The Netanya area, which incorporates the Sharon cities, is especially distinguished. Thus, from a fee of roughly 66.6% of complete builders’ gross sales within the free market on this area in March, the speed fell to solely 20% in Could. A pointy decline within the prevalence of financing reductions was additionally recorded within the Hadera area and a extra average decline within the Beersheva area. However, the central area stands out with a rise within the relative prevalence of financing offers in Could, persevering with the rise recorded within the earlier month. Ramat Gan stands out specifically, with financing reductions accounting for 70% of contractors’ gross sales on this metropolis in Could, in contrast with solely 27% in March.”
Rise in condo gross sales with protected room even earlier than Iran struggle
The report additionally exhibits that Iran is the very best promoter of gross sales of flats with protected rooms. The information exhibits from when the Iranian began launching missiles at Israel final 12 months, condo patrons elevated their purchases of flats with protected rooms.
The duty to report whether or not an condo being bought has a protected room started solely a 12 months in the past. All new flats embody a protected room, however a big proportion of older flats have been constructed earlier than the duty to incorporate a protected room, which started in 1992, and they don’t embody protected rooms, except for flats that underwent the TAMA 38 course of, wherein a protected room was added.
A earlier survey carried out by the chief economist discovered that following the primary and second missile assaults from Iran, in Could and October 2024, the proportion of second-hand flats bought that embody a protected room jumped. After reaching 58% of all second-hand flats bought in Could (in contrast with 55% in earlier months), the share of flats with a protected room out of all second-hand flats bought fell to 52%, till in September and October 2024 it rose once more, reaching 56% in October. Apparently, between the 2 missile assaults, the general public had the sensation that the escalation of hostilities with Iran, and the wars in Lebanon and Gaza, have been on the decline.
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After the second missile assault, and with the outbreak of the marketing campaign in opposition to Hezbollah in September 2024, the general public realized that the struggle might last more, and turn out to be extra damaging and harmful. By the top of 2024, a comparatively excessive share of flats bought with a protected room remained at about 55% of all second-hand flats bought. This can be because of the massive value variations between flats with and with out protected rooms, and to the nice reliance of Tel Aviv residents on their proximity to dwelling and public shelters.
Within the Haifa area, then again, which was threatened by rocket fireplace from Lebanon greater than another area, apart from the north, a rise within the fee of offers with protected rooms has been recorded because the ceasefire settlement with Lebanon was signed in November 2024.
Since January 2025, the proportion of flats with protected room out of all second-hand flats rose once more, reaching a peak of 60% in April. The chief economist speculates that this was, “Due the media speak about the potential of a struggle in opposition to Iran, which broke out on June 13”.
Nevertheless, the pattern was not uniform in all areas, and within the Tel Aviv area, which incorporates solely the cities of Tel Aviv and Bat Yam, a lower was recorded because the starting of the 12 months within the fee of flats with protected rooms amongst all second-hand flats bought.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on July 9, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
