Few Real Estate News Updates Going Into 2025
Home Prices Rising: Home prices in Israel saw a continued increase in September and October 2024, with a 0.5% rise compared to the previous two months, marking a significant 6.7% surge from the same period last year. The northern district led the growth with a 1.5% increase, followed by Tel Aviv and central Israel with 1% and 0.4% rises respectively.
Sales and Rentals: October 2024 witnessed the sale of 5,111 apartments, a remarkable improvement compared to October 2023 when sales slumped due to the outbreak of war. Despite this uptick, sales were 38% lower than in September 2024, indicating a dynamic market adjusting to post-war conditions.
Construction Activity: The construction sector showcased robust activity, with 16,400 units started in the third quarter of 2024, up from 13,600 units in the previous quarter. The total number of buildings under construction reached 178,000 units, though completions remained modest at 12,400 units.
Foreign Investment: Reflecting renewed confidence in the Israeli market, foreign investors purchased 110 apartments in October 2024, a significant rise from just 42 units in October 2023.
US-Israeli Real Estate Moguls in Custody: In a major legal development, Israeli-American real estate mogul twins Alon and Oren Alexander, along with their older brother Tal Alexander, have been indicted for conspiracy to commit sex trafficking and sex trafficking by force, fraud, or coercion. They remain in custody following their initial court appearance in Miami.
Price Moderation: After a prolonged period of rising housing prices, the market shows signs of moderation. The Housing Price Index for August-September 2024 recorded a slight 0.1% decline, suggesting a return to 2023 price levels.
Government Initiatives: The Israeli government continues its commitment to urban renewal, with an approved budget extending projects to more local authorities. Efforts to boost housing supply include the inauguration of the Nofei Ben Shemen neighborhood in Lod, adding 4,300 new apartments.
Challenges and Concerns: The real estate market faces several challenges, including a manpower shortage in construction due to restrictions on Palestinian workers. Discussions are underway about extending mortgage terms to make homeownership more accessible, addressing one of the key concerns for potential homebuyers.
In summary, Israel’s real estate market remains vibrant and resilient, supported by government initiatives and foreign investment, despite challenges and a slight moderation in price increases.
For the most up-to-date and in-depth information, it is recommended to consult with financial and real estate professionals specializing in the Israeli market.
