In November 2021, the highest number of new apartments in the history of Israel were sold

In November 2021, the highest number of new apartments in the history of Israel were sold. According to data from the Central Bureau of Statistics, 6,155 new dwellings were sold this month, 36% higher than in October when 4,537 dwellings were sold, and 53% from November 2020 when 4,027 dwellings were sold.
The Central Bureau of Statistics measures the demand for new dwellings by weighting new dwellings sold and non-sale dwellings that have begun construction (most have built your home or purchase groups). Transactions for the purchase of a new apartment pushed this figure and it is also unusually high in November - according to the CBS, there was a demand for 7,475 new apartments that month. 51% from November 2020 when there was a demand for 4,943 new apartments.
The demand for new apartments will fuel the law that came into force on 28/11/2021, following which the purchase tax imposed on investors increased - that is, those who buy a second apartment and more - from 5% to 8%.
However, in July 2015, a similar move was made to increase the purchase tax, even then, on the eve of the amendment coming into effect, a record was set in the volume of apartments (new and second-hand) purchased by investors. At that time, the effect on the volume of new dwellings sold in total (to investors and non-investors) was not so dramatic - in June 2015, about 2,900 new dwellings were sold, according to CBS reports, an increase of about 10% compared to previous months.
Therefore one needs to find additional reasons for the influx recorded at the end of the year to the sales sites. What seems to be driving the market now is a feeling that the government no longer has the tools in the basket, and apartment prices are only expected to rise. The price-per-tenant program has faded, following which buyers waiting for a discounted apartment in the lottery have returned to the market. The return of young couples to the market also introduced the housing developers, who manage to sell their old apartment quickly and at a high price and are looking for a new apartment.
During the past week, public real estate companies reported the volume of sales of their apartments in 2021, in all reports the figures were sharply higher than last year: YH Damari and Azorim reported a 20% increase in sales. The Hanan Moore Group reported a jump of 280% in sales (from 167 apartments in 2020, to 615 in 2021.) Effie Capital, Rothstein Real Estate, Africa Israel Residential and Israel Canada also reported a double-digit increase in sales.
"From March 2018, there has been an increase in demand for new apartments at a rate of 2.4% per month," the statement said.
Tel Aviv returned in November to the top of the list of cities where the most new apartments were sold, with 1,078 transactions. Ashkelon, which was at the summit for a long time, slipped to third place after 886 new apartments were sold there. In second place is Jerusalem, where 1,033 apartments were sold.