Real Estate Market Shows Strong Recovery in January 2024: 8,053 housing units have been sold

In a recent review published by the Division of the Chief Economist in the Ministry of Finance, the residential real estate market in January 2024 displayed significant signs of recovery, particularly in the segment of new apartments.

Key Findings:

• Overall Transactions Increase: The number of transactions for the sale of apartments (both new and second hand) in January 2024 totaled 8,053 housing units, marking a notable 14% increase compared to January of the previous year.

• New Apartment Segment Boom: Sales of new apartments saw a particularly robust surge, with a 46% increase in contractor sales compared to last year. This included a 36% increase in sales on the free market alone, reaching the highest level since May 2022.

• Regional Trends: Sales increases were observed across various regions, notably in the central area where sales jumped by 62%. The Rehovot area also stood out with a sharp increase in sales following significant sales promotions.

• Market Segmentation: While the new apartment market flourished, the second-hand apartment segment continued to lag, reaching lows comparable to the January months during the second intifada.

• Government Subsidies Impact: The increase in sales of new apartments, including those benefiting from government subsidies, was attributed to favorable financing conditions for buyers and preferences for apartments with MMD (Mandatory Mutual Deposit).

• Delivery Timelines: Despite concerns about manpower shortages in the industry, there was no significant extension in the maximum time until the delivery of apartments in contracts signed in January compared to pre-war months. Only a small fraction of apartments had delivery dates exceeding four years from the date of contract signing.

• Notable Performers: The Beer Sheva area recorded the highest level of sales, with a 51% increase compared to January last year. Netivot emerged as the most dominant city in sales within this region.

The data reflects an optimistic start to the year for the real estate market, showcasing resilience and recovery despite ongoing challenges. As the market continues to adapt to changing conditions, analysts will closely monitor trends and developments in the coming months.