During March and April, the residential real estate market officially moved into a trend of price increases, with the Housing Price Index published for each showing a monthly price increase of 1 percent. Thus, the slight decrease in apartment prices recorded in the past year was completely erased when the annual Home Price Index also showed a 0.3% increase in price in April compared to last year. This is the first time in the last year and a half that the annual change in home prices is positive.
The price increase comes during a time of growing demand on the one hand and a reduction in construction volumes on the other – mainly due to the severe manpower crisis from which the industry is suffering. This is with the termination of the work of 100,000 Palestinian workers following the outbreak of the war and the unsuccessful attempt to bring foreign workers from India and other countries to Israel to replace them. As a result, in mid-April, an erosion in the supply level was recorded for the first time, with less than 67,000 new unsold apartments, after their number was 68,500 in February.
Despite the increase in demand among the general Israeli public, there is currently no strong trend of purchasing among foreign residents, contrary to estimates and speculation following 7/10 and the rise of anti-Semitism in Western countries. According to the latest Ministry of Finance data on the subject published in April, only 96 apartments were purchased by non-residents in February, a 16% decrease compared to February last year.
The following is a selection of real estate deals that took place in March and April 2024 carried out by English-speaking real estate agents in Israel. The idea is to give our readers a general idea of the residential real estate market, property prices, and activities around the country relating to Israel real estate*.
Jerusalem:
A 3-room garden apartment, 72 sqm with a 40 sqm garden and private entrance, located on Derech Hevron Street, Baka neighborhood, Jerusalem, was sold for NIS 2,850,000.
Tel Aviv:
A 4-room apartment, 77 sqm, on the second and top floor, located on Ahima’ats Street, Beit Yakov neighborhood, Tel Aviv, was sold for NIS 2,050,000. A 3-room apartment, 93 sqm with a 9-sqm balcony, on floor 6 out of 7, located on Ma’apilei Egoz Street, Neve Hen neighborhood, Tel Aviv, was sold for NIS 2,365,000. A 4-room apartment, 108 sqm with a 12-sqm balcony, on floor 9 out of 18, located on Shtulim , Park TLV neighborhood, Tel Aviv, was sold for NIS 3,000,000. (Re/Max Ocean).
Netanya:
A 5-room new apartment under construction, 128 sqm with a 15 sqm balcony, on floor 24 out of 29, located on Sderot Ben Avi, in the Park Hayam neighborhood, was sold for NIS 3,860,000. (Buyitinisrael). A 5-room apartment, 138 sqm with a 21 sqm balcony, on floor 25 out of 26, located on Harav Kook, Central Netanya, was sold for NIS 3,880,000. (Home in Israel).
Ariel:
A 4-room garden apartment, 96 sqm with a 130 sqm garden, on the ground floor, located on Derech HaTsiyonut, Ariel, was sold for NIS 1,750,000. (Nadlan Ariel).
Nahariya
A 5-room apartment, 132 sqm with a 10.76 sqm balcony, on floor 2 out of 5, located on Entebbe Street, Shimon Perez neighborhood, Nahariya, was sold for NIS 1,875,000. A 2.5-room penthouse, 132 sqm with a 4.3 sqm balcony, on floor 3.5 out of 5, located on Entebbe Street, Shimon Perez neighborhood, was sold for NIS 2,180,000. (Remax Haluzim).
Ashdod:
A 4-room apartment, 99 sqm, on floor 1 out of 6, located on Keren HaYesod, Ashdod, was sold for NIS 1,755,000. A 4-room apartment, 172 sqm, on floor 6 out of 11, located on Bareket, was sold for NIS 3,300,000. A 4.5-room apartment, 144 sqm, on the floor 2 out of 7, located on Alexander Penn, was sold for NIS 2,310,000. (Re/Max Together).
* The offices/agents mentioned represented the buyers, the sellers, or both parties.
