Foreign population picked up apartments in Israel last month, which contributed to the record of the mortgages amount taken in December 2024. Since the outbreak of the war, there has been a noticeable increase in the apartments bought by the foreign population, but on the contrary, the buyers are mostly the religious Jews who They are looking for homes in Jerusalem.
The standard mortgage was at all in December, which reached 13.8 billion New, due to five population sectors that conducted a large number of deals at the end of the year, as buyers rushed to overcome the value -added tax. The first sector that emerged was the buyer of the apartments at a price of 2-3 million NIS, who increased significantly the amount of real estate loans they took, especially the most expensive loans. 47 % of the mortgages that were seized by this sector amounted to 1.2 million New or more.
The second sector was interfering with the first type of mortgage borrowers, the people who bought a mortgage apartments from 1.2 to 2 million New, while the third sector was buying for new apartments as part of the marketing campaigns by the developers who took outside the “balloon” loans with dates Dealimous payment. These loans amounted to 3.2 billion NIS – more than twice the previous record.
The fourth sector of buyers who increased the volume of real estate loans was real estate investors, and their number in December was the highest since June 2022, and was above 50 % of the size of borrowers in the months before. The fifth sector, and perhaps the most interesting, is the foreign population. Since the outbreak of the war, there has been a significant increase in the amount of residential purchases by this sector.
Healing from the low point
The foreign population still constitutes only a small percentage of the total Israeli housing market. There are no final numbers for 2024 yet, but estimates are that the purchases by the foreign population will achieve 1900 apartments, or about 2 % of the market last year. However, this is an increase of about 50 % compared to the number of deals that were implemented in 2023.
The real estate mortgages taken by the foreign population reached about 10.7 billion NIS in 2024, an increase of 13 % in the first nine months of 2024 compared to the corresponding period from 2023 to the war – immediately after the war began, there were very few purchases by the foreign population. .
According to the Ministry of Finance, the housing market for the foreign population was in a declining direction since the peak years from 2005-2006. In those days, the foreign population made deals at a rate of 400 per month, and sometimes more; Since then, sizes have decreased dramatically, for several reasons: the financial crisis that struck the West from the end of the first decade of the century to the middle of the second decade, the prices of housing in Israel, which has since increased, to a shekel, the exchange rate that strengthened against the dollar increased, and a tax. Purchase. The Covid’s epidemic was the weakest in terms of this market, when only dozens of deals were implemented per month.
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Real estate mortgage record in Israel in December
Since then, there has been some increase, but not constantly. When the purchase tax was reduced at the end of 2020 by the then Finance Minister, Israeli Katz residents began to buy more homes in Israel. After raising the purchase tax on apartments again at the end of 2021, the foreign population reduced the number of purchases, and during the year 2023, before the outbreak of the war in October, the average monthly number of purchases reached about 100 apartments. In the first months of the war, purchases were reduced, but since the first quarter of 2024, there was a significant increase, and it is estimated that in 2024 the number reached 150 apartments per month – far from the peak 20 years ago, but a great recovery compared to the lowest. Five years ago.
However, in one city, the purchases by foreign population today are almost equal to peak days. In Jerusalem and its surroundings, there have been nearly 100 deals a month in recent months. This is specifically the big difference between the 20-30-year-old peaks and what is happening today: At that time, Jerusalem constituted 25 % of all purchases by foreign residents, with Tel Aviv being the most popular city, Herzially Beto, Netanya, Ashdod (the marina that has been done Building it at the time), as Ra’ana competes for this market. Today, very few of these places attract many foreign buyers, and Jerusalem is the largest part of the market.
Usually, these buyers come from silky and Orthodox societies. For example, “Globes” was recently reported in the Midtown Jerusalem project in Israel Canada, in which many apartments were purchased by the American Hardi community. This is not the only example, as other new projects in the city sold apartments for the non -Israeli Hajj societies.
The dominance in the luxury market
The jump in the mortgage of the foreign population at the end of 2024 indicates that many are searching for new apartments, instead of used homes, and therefore, in order to overcome real estate mortgages in the final months of 2024.
“The anti -Semitism rises everywhere, and the buyers come here from everywhere,” says Kobe Bear, the appraiser, appraiser in Jerusalem. However, he says that not all of these buyers plan to migrate in the near future. “A large number of them want” to get their foot in the door “and get the option to live in Israel.”
A: “We see three main sources of foreign resident buyers: the United States, England and the French mortgage bankers.” In recent months, we have seen a significant increase in the number of deals, especially in September, which is on the eve of high holidays, when it comes traditionally to Israel and buy apartments. We also appreciate that the numbers measured in November and December will be very large. “
Among other things, it is clear that the presence of the foreign population feels in the luxurious Jerusalem market. In November to December, they purchased 22 apartments at prices more than 10 million New, out of 72 such apartments purchased in 2024, a large part of which is new apartments.
It was published by Globes, Israel Business News – En.globes.co.il – on January 28, 2025.
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