Real astate: in July 13.1 thousand apartments were purchased - an increase of 35%

July ended with the purchase of 13.1 thousand apartments. This is an increase of 35% in the volume of apartment purchases within a year. This emerges from a survey by the chief economist at the Ministry of Finance. However, there has been a 5% drop compared to June, so now we need to follow the trend in the coming months as well to see if the peak is behind us. According to preliminary data from the Treasury, data for August indicate an increase in the volume of transactions.
Despite the jump in the volume of transactions, it should be taken into account that the jump in the volume of transactions in July last year was partly affected by the investors' wait to lower the purchase tax on investment apartments from 8% to 5% (in most apartments). Despite the decline in the price per occupant program, it still has an effect on the volume of purchases, and after deducting the volume of purchases in the program, 11.6 thousand apartments were purchased this month, an increase of 46% compared to July 2020, and a 27% increase compared to July 2019. At a rate of 8%.
As mentioned, the investor sector that returned to the market in a storm continues to lead the increase in the number of transactions, in July they purchased 2,600 apartments, 3 times more than in July 2020, and 80% higher compared to July 2019. Meanwhile, even in the case of investors can be seen a decrease in comparison For the previous month, in this case the decrease is 10%, and the rate of investor transactions out of all transactions was 20%. Among the cities in which investors chose to purchase apartments stood out: Eilat, Ashkelon, Harish and Sderot, where there was a high number of acquisitions in relation to their size, and in cities: Tel Aviv, Jerusalem and Haifa, the highest volume of investors was recorded. An increase of 36% compared to July last year, and a decrease of 5% compared to the previous month.
Contractor sales in the free market (apartments that are not in the price-per-tenant program) totaled 3,300 apartments this month, an increase of 70% compared to July last year, but compared to the previous month this is a 7% decrease in sales.
First-hand buyers in the free market stood at 4,500 apartments, an increase of 28% compared to July 2020 and a decrease of 3% compared to the previous month. The housing improvement segment purchased 4,400 apartments, an increase of 25% compared to July 2020 and a decrease of 11% compared to the previous month.