There were 11261 housing deals in December 2024, and the largest reports of the Ministry of Finance, the highest number since March 2022, where many buyers rushed to buy new homes before the value -added tax increased from 17 % to 18 % on January 1, 2025.
In total, there were 95,000 residential transactions in 2024, which is 5 % less than the annual multi -year but 35 % higher than 2023, which was the worst year for decades.
What made 2024 distinguished is that 50 % of the deals included special offers by contractors for apartments that have not yet been built, with small payments by 10 % or 20 % and the rest is paid to occupy after the construction is complete. In December 60 % of housing sales in the Harish -ra region, this type of deals and 33 % was in Tel Aviv.
Standard sales in the south
Geographically, the southern region has emerged with close annual sales. According to the Ministry of Finance data, 1,106 new apartments were purchased in the open market in December, “the second highest registered level in this region since the beginning of the first decade of the twentieth century.” In an annual summary, 63,344 apartments were sold in the south, the highest number for at least 25 years. The Ministry of Finance also confirms that this is the only area that has record levels of new apartments sales in the open market last year, and it is 21 % higher than the previous record in the region in 2015. At the national level, the total new sales were homes in the market. Open last year is 10 % less peak levels in 2021.
The real estate crisis is exacerbated
The initial data examination raises fears that 2025 will be very weak, as the declining trend began in the number of deals in the second half of 2024.
There is an additional evidence of an exacerbation crisis in the real estate market is the use of financial offers by real estate developers, such as 20 % of fallen payments and 80 % on occupancy. According to the Bank of Israel, before the war, the size of these deals was 20 % of all deals, while since the outbreak of the war, its rate jumped to 50 %. This indicates a decrease in demand, and the attempts of developers and banks to attract buyers with very low stock, with paid balance, when the apartments are completed.
The chief economist examined the deals that were carried out in the central region that the apartments are expected to be occupied by an average of 3.5 years. The review states that due to the failure to complete work in the tax authority, from which the data is taken, the chief economist employee forced the data to extract the data manually, which has limited the areas that were examined in the central and southern regions, Tel Aviv, and North Sharon (Hadira Harish region) .
41 % of deals in the southern region, 34 % of deals in the Tel Aviv region, 47 % of deals in the central region and 61 % in North Sharon were within the framework of these offers 20-80 by developers.
An analysis of payment conditions found that in most of these deals, apartments buyers had to pay more than 15 % of the price of the apartment in the foreground.
It was also found that there are several versions of these financing deals. For example, in the southern region, it includes two payment parts – at the time of signing the contract and at the time of the delivery of the apartment; In the Tel Aviv region, moderate payments are also needed in most cases.
Another analysis found that in the southern region, approximately 60 % of the apartment buyers in the offers of these developers are young couples, and other home buyers for the first time; In the central region, a third of buyers are young couples, while in Tel Aviv, those who buy this way are mainly investors.
This is a major change in the target population of these financing deals. Originally (about two years ago), these promotional offers were aimed at encouraging buyers to buy a new apartment before selling them, in order to allow them a gap for several years to sell their apartments. But today only 20 % -3 % of these deals for this purpose.
It was published by Globes, Israel Business News – En.globes.co.il – on February 12, 2025.
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