Data from the Ministry of Finance reveals that approximately 22,000 apartments were sold in the free market during Q3 2024—a 4% increase from the previous quarter and a 26% jump compared to last year. Additionally, there was a 25% rise in transactions in Jerusalem and a 39% increase in Bnei Brak. First-time home purchases in the free market reached their highest levels since early 2022.
By Doron Broitman, Nadlan Center
The recovery in the number of transactions in the free market continued during Q3 2024, according to the quarterly real estate review published on Tuesday by the Chief Economist’s Division at the Ministry of Finance. The total number of transactions in the free market stood at 22,440 apartments, marking a 26% increase compared to Q3 2023 and a 4% increase from the previous quarter. Including sales under government subsidy programs, the total number of transactions reached 24,728 apartments, reflecting a 22% annual increase and a 5% quarterly growth.
Jerusalem led the number of transactions in the free market during Q3 2024, with 1,386 apartments sold—a 25% increase compared to Q3 2023, in line with the national growth rate. Bnei Brak stood out with 399 apartments sold, a sharp 39% increase compared to last year. Be’er Sheva and Haifa followed Jerusalem with a similar volume of transactions: 1,267 and 1,257 apartments, respectively. However, while Be’er Sheva saw a 36% year-on-year increase, Haifa experienced a more moderate 10% rise.
A notable finding in the geographic breakdown of free market transactions is the recovery in Safed and Kiryat Shmona compared to the previous quarter. In Kiryat Shmona, only nine apartments were sold in Q2 2024—a sharp 80% decline compared to Q2 2023. However, 38 apartments were sold in the city in Q3 2024, similar to Q3 last year. In Safed, 101 apartments were sold during Q3 2024, matching last year’s levels and marking a significant 55% increase from Q2 2024.
The luxury housing market experienced a decline in transactions during Q3 2024, with 115 apartments sold for NIS 10 million or more. This reflects a 9% decrease year-on-year and a 20% drop compared to the previous quarter. Tel Aviv remained dominant in the luxury market, with 70 apartments sold during the quarter, although this was slightly lower than the 76 sold in Q2 2024 and Q3 2023.
A 40% surge in Be’er Sheva: Many buyers are young people from beyond the southern region
First-time home purchases in the free market during Q3 2024 totaled 11,813 apartments, the highest level since Q1 2022, representing a 26% increase year-on-year. Including government-subsidized purchases, total first-time home purchases reached 14,101 apartments—a 20% annual increase and a 7% quarterly rise.
A geographic breakdown reveals that first-time home purchases increased across all regions, with Be’er Sheva standing out with a 40% increase, reaching 2,197 apartments—the highest level of first-time home purchases in the region since 2010. According to the Ministry of Finance, many of these buyers are young people who do not reside in the south but are taking advantage of financing benefits offered by developers.
Investor purchases in Q3 2024 continued to recover, totaling 4,018 apartments—a 40% increase year-on-year. Investors accounted for 16% of all transactions during the quarter, a 2% rise compared to the same period last year. Investor sales during Q3 2024 totaled 4,383 apartments, an 11% increase year-on-year.
Developer sales in the free market reached 8,412 apartments in Q3 2024, a 48% annual increase following an even sharper 80% rise in Q2 2024. However, compared to the previous quarter, there was a 3% decline in transactions. The number of apartments purchased “off-plan” stood at 5,200—a 45% year-on-year increase but a 7% decline from the previous quarter.
