There are many surprises in the most popular cities ranking for real estate deals since the start of the war on October 7, compiled by “Globes,” from the deal data of the Central Bureau of Statistics and Israel Tax Authority.
There have been 174 homes sold in Jerusalem, more than any other Israeli city, since the start of the Israel-Hamas war. This is 47% less than the monthly average number of housing deals (328) that are normally completed. In second place is Haifa with 148 homes sold since the start of the war, down 48.2% of the monthly average. This is followed by Petah Tikva with 114 deals, down 22.4% from the monthly average, Beersheva with 84 deals, down 68.5% from the monthly average, Netanya with 78 deals, down 42.6% from the monthly average, and Holon with 63 deals, down 73.4% from the monthly average.
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War pushes Tel Aviv rents down sharply
Down in seventh place is Tel Aviv, with just 53 homes sold since the start of the war, 65.6% lower than the monthly average, followed by Ashkelon with 53 deals, down 78% from the monthly average, the sharpest fall of any Israeli city because it has been one of the main targets of Hamas rockets, but still ahead, in terms of the number of deals, of Ashdod with 51 deals, down 65.8% from the monthly average, and Rishon Lezion with 45 deals, down 68.5% from the monthly average.
Tel Aviv: The decline is not connected to the war
Tel Aviv has been suffering for over a year from a steep decline in the number of homes sold, due, among other things, to the high-tech crisis and the increase in interest rates, which do not allow potential buyers to pay the high prices being asked. It is likely that the war has increased the fall in the number of homes sold, but unlike the situation in the other cities, it does not seem to be the main reason for the sharp fall.
The big unknown in the post-war housing market will be how well the market recovers. Problems for apartment buyers and real estate developers are not limited to rockets, terrorism, and the call-up of the army reserves. The entire economy is currently suffering from serious economic problems, thousands have been put on unpaid leave and the high interest rate environment that caused the crisis in the market in the first place will remain even after the war. In the current conditions, it is not clear that after the war, market data will rebound to what it was previously.
Published by Globes, Israel business news – en.globes.co.il – on November 26, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.
