During the month of September, the market further weakened and a slow decline in home prices continued, even though for the first time in a while the Bank of Israel left the interest rate at its current level – 4.75%, and did not increase it further.
At the end of October, the housing market in Israel was at a historic low. The slowdown, which began at the end of 2022 and intensified throughout 2023 following a series of interest rate increases on the part of the Bank of Israel and the judicial reform that shook Israeli society, has come to a halt since Operation Iron Swords began on October 7. With 350,000 citizens conscripted into the reserves and glum forecasts of a severe economic crisis towards which the country is heading, Israelis these days refrain from buying apartments.
At the same time, those who have already purchased a new apartment and are waiting for construction to be completed, are most likely to take possession later than planned. This is due to an acute labor shortage in the industry, resulting from the fact that approximately 100,000 Palestinian workers, who made up the majority of workers in the industry, can no longer come to work in Israel, and will likely not return to the construction sites in the coming months. Despite all this, the coming period may turn out to present opportunities, as a result of both contractors and sellers of second-hand homes being forced to compromise on price.
The following is a selection of real estate deals that took place in September and October 2023 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 taking place around the country that relate to Israel real estate*.
Jerusalem:
A 3.5-room apartment, 80 sqm, located on Hizkiyahu Hamelech sold for NIS 3,480,000 (RE/MAX Vision).
Tel Aviv:
A 5-room apartment, 125 sqm, with 2 balconies of 24 sqm, each located on the 6th floor out of 11 floors, on Shai Agnon, sold for 15,750,000 (Daon Group Real Estate). A 3-room apartment, 141 sqm with a 25 sqm balcony, located on the 5th floor in a new project on Hayarkon, was sold for NIS 22,000,000 (Deborah Michael Real Estate).
Netanya:
A 4-room apartment, 130 sqm with no balcony, located on Nitza Boulevard, North Netanya, sold for NIS 3,850,000. A 2.5-room apartment, 83 sqm, on the 7th out 18 floors, located on Nitza Boulevard, North Netanya, sold for NIS 2,400,000 (Home in Israel).
Modi’in:
A 4-room garden apartment, 85 sqm with a 40 sqm garden, located on Inbar Street, Kaiser, sold for NIS 2,740,000 (LiMor Cohen Melul).
Ashdod:
A 3-room apartment, 90 sqm, located on the 10th floor out of 12 floors on Arlozorov, in the 5th District, sold for NIS 1,800,000 (Remax Together).
Ma’ale Adumim :
A 5-room apartment, 160 sqm, with a 30 sqm terrace, located on the second out of four floors on Mitzpeh Nevo, sold for NIS 2,880,000. A 12-room detached villa, 350 sqm, with a 200 sqm garden, located on Hagilgal in Mizpeh Nevo, sold for NIS 4,2700,000 (Remax Atid).
Ashkelon:
A 4-room apartment in Afridar with an open view towards the city sold for NIS 1,800,000. A 4-room, sea-facing apartment under construction on Yefe Nof, with a large 75 sqm succah balcony, sold for NIS 4,100,000 (Ashkelon Properties).
Everybody wants a Buyitinisrael, now more than ever before. Whether you’re thinking about Aliyah, looking for a home or a haven, or want to support the Israeli economy, drop us a line, when you’re ready to talk. Whatever the reason, Buyitinisrael.
* The offices/agents mentioned represented either the buyers, the sellers, or both parties.
