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Our Insights on Israel's Real Estate Market | Blog | Immo Israel

Our Insights on Israel's Real Estate Market

Purchase tax reduction in Israel: Simplify your settlement with favorable rates for new immigrants and save significantly on your first real estate purchase.

Reduction of Purchase Tax: A Boost for New Immigrants in Israel | Blog | Immo Israel

Since July 29, 2024, new Israeli legislation has been providing significant tax benefits to new immigrants (olim) on the purchase of their first property in Israel. This reform aims to lighten the financial burden on olim hadashim by significantly lowering the tax rates on their initial real estate purchase.

<table> <thead> <tr> <th>Rate</th> <th>Price Range</th> <th>Apartment Details - Example</th> <th>Example for Oleh Hadash with Calculation</th> <th>Example for Israeli with Calculation</th> <th>Links to Listings</th> </tr> </thead> <tbody> <tr> <td>0%</td> <td>Up to 1,980,000 NIS</td> <td>2.5 rooms in Bat Yam - Price 1,790,000 NIS</td> <td>1,790,000 NIS x 0% = 0 NIS</td> <td>1,790,000 NIS x 0% = 0 NIS</td> <td><a href="https://www.immoisrael.com/listings/2-5-room-apartment-sale-155-balfour-street-bat-yam" target="_blank">Bat Yam</a></td> </tr> <tr> <td>0.5%</td> <td>Between 1,980,000 and 6,000,000 NIS</td> <td>5 rooms in Netanya - Price 2,980,000 NIS</td> <td>(2,980,000 - 1,980,000) NIS x 0.5% = 5,000 NIS</td> <td>(2,980,000 - 1,919,155) NIS x 0% + (2,276,360 - 1,919,155) NIS x 3.5% + (2,980,000 - 2,276,360) NIS x 5% = 47,684 NIS</td> <td><a href="https://www.immoisrael.com/listings/5-room-apartment-sale-harav-yosef-rivlin-street-netanya" target="_blank">Netanya</a></td> </tr> <tr> <td>8%</td> <td>Between 6,000,000 and 20,000,000 NIS</td> <td>4.5 rooms in Tel Aviv - Price 9,750,000 NIS</td> <td>(9,750,000 - 6,000,000) NIS x 8% = 300,000 NIS</td> <td>(1,919,155 - 1,980,000) x 0% + (2,276,360 - 1,919,155) x 3.5% + (5,872,725 - 2,276,360) x 5% + (9,750,000 - 5,872,725) x 8% = 502,502 NIS</td> <td><a href="https://www.immoisrael.com/listings/luxury-4-5-room-apartment-sale-9-shaul-avigur-street-tel-aviv-yafo-2" target="_blank">Tel Aviv</a></td> </tr> </tbody> </table>

Tax benefits are only applicable if the property is used as a primary residence. Investment properties do not qualify for these reductions. Moreover, properties valued over 20,000,000 NIS do not benefit from these reduced rates. The Israeli Tax Authority has also strengthened proof requirements that the property is being used as the primary residence to prevent misuse.

This aid, approved by the Knesset's Finance Committee, will take effect on August 15. It applies to new immigrants who have immigrated within the last seven years and have not yet purchased housing. This measure primarily aims to support newly arrived young couples, taking into account price differences from their home countries. At its peak, this assistance could reach approximately 175,000 shekels for olim.

The Israeli government is committed to facilitating the integration of new immigrants. This tax reduction sends a strong signal encouraging Jews worldwide to settle in Israel. Finance Minister Bezalel Smotrich emphasized that the State of Israel is fully committed to supporting new immigrants by making their settlement easier. The Minister of Immigration and Integration, Ofir Sofer, noted that this measure assists newcomers in adapting and encourages those considering making their Aliyah.

The reform of the purchase tax for new immigrants marks a significant advancement in the integration of olim into Israeli society. By making property purchases more financially accessible, this legislation promotes Aliyah and the development of new communities in Israel. Purchasing property in Israel is now more accessible than ever for new immigrants.

Discover our real estate offerings on our search page. Our platform offers a vast selection of properties tailored to all budgets and needs, directly in English. Use our filters to quickly find the apartment or house of your dreams.

Reduction of Purchase Tax: A Boost for New Immigrants in Israel

Monthly real estate statistics: prices, sales, and trends. Key insights for better understanding. Explore our dedicated category for real estate data in Israel.

Statistics | Blog Topic | Immo Israel

Read comprehensive guides to the Israeli real estate market, written by the experts at Immo Israel, and make your house hunt as easy as possible!

Guides | Blog Topic | Immo Israel

Read the articles on Immo Israel and find out everything you need to know about real estate in Israel as an Oleh Hadash making Aliyah!

Aliyah | Blog Topic | Immo Israel

Explore Israel's housing price trends for May 2024 on the Immo Israel blog. Get insights into average transaction prices, district comparisons, and the most and least expensive cities. Stay informed with expert real estate updates.

Housing Price Trends in Israel - May 2024

Welcome to the Immo Israel blog! In this post, we'll delve into the housing price trends in Israel for May 2024, highlighting data from March and April, and comparing it to the same period in the previous year. Read on for insights into average transaction prices across the nation and by specific districts, along with a spotlight on the most and least expensive cities in Israel.

The Israeli Central Bureau of Statistics (CBS) reports a 0.9% increase in transaction prices from March to April 2024, up from the increase observed between February and March 2024. This moderate rise signals a steady recovery in prices following a period of stagnation throughout 2023.

Figure 1: Monthly Percentage Change in Housing Price Index

Please note: Data for the last quarter is preliminary, pending additional reported transactions. This disclaimer applies to all subsequent graphs.

Over the year, housing prices in Israel increased by 2.1% from March-April 2023 to March-April 2024, marking a return to growth after a price drop in the latter half of 2023.

Figure 2: 12-Month Percentage Change in Housing Price Index

The variations in housing prices by district compared to the previous period (March-April 2024/February-March 2024) show diverse trends:

Annually, all regions recorded price increases, with Haifa District seeing the highest at 6.6%, followed by the North District at 3.7% and the South District at 3.6%. Both Jerusalem and the Center Districts noted more modest rises of 1.9%, and Tel Aviv District experienced a minimal increase of 0.1%.

The national average transaction price in the first quarter of 2024 was 2,171,000 NIS, an increase from the previous year. Here’s a breakdown of average prices in major cities:

While cities like Tel Aviv, Herzliya, Ramat Gan, Kfar Saba, and Netanya continue to command high prices, Beer Sheva, Ashkelon, and Haifa offer more affordable housing options.

The recent data underscore the resilience of the Israeli real estate market, with a general upward trend in prices, though variations persist across different regions and market segments. For potential buyers, understanding these regional differences and the dynamics between new and existing homes is crucial.

Our search engine at Immo Israel offers a convenient and efficient way to explore a wide selection of properties across the country. 

Don't miss the chance to discover real estate opportunities in Israel and stay tuned for our next update!

Disclaimer: The data and statistics in this article are based on information from the Israeli Central Bureau of Statistics (CBS). While considered reliable, variations or errors in the data may occur. For the most recent and accurate data, we recommend consulting the CBS website directly. Neither the author nor Immo Israel is responsible for the use or interpretation of this information.

Explore the impact of the war on the Israeli real estate market, including trends, rising costs, and an uncertain future. Our in-depth analysis delves into the challenges and opportunities that lie ahead.

Israel: Real Estate in Turmoil Since October 7, 2023

The Israeli real estate market is currently in a state of upheaval, marked by heightened uncertainty stemming from the recent war initiated by Hamas on October 7, 2023 and leading to "Operation Iron Swords." This article seeks to unravel the prolonged consequences of the conflict and shed light on the future prospects of the sector.

Before the outbreak of hostilities, the Israeli real estate market was already displaying signs of fatigue. A significant decline in the sales of new homes was noted, ranging from 30% to 90% depending on the areas and types of properties. Moreover, the volume of real estate transactions had decreased by a third compared to the previous year, indicating a concerning downward trend.

With the onset of the war, the construction sector ground to an almost complete halt. The initial two weeks were marked by an unprecedented absence of real estate transactions in the country's recent history. Even after this period, severe restrictions were imposed, significantly hindering the sector's recovery. This stagnation has led to significant delays in completing ongoing projects and launching new sites.

Furthermore, the disruption of supply chains and the surge in raw material prices have increased construction costs. For example, the prices of steel and cement increased by 20% and 15%, respectively. Coupled with financial uncertainty and rising interest rates, these increases exerted additional pressure on the prices of new homes, exacerbating the challenge of property ownership for many Israelis

Despite these challenges, the demand for housing in Israel has displayed a certain resilience. Following an initial stagnation, signs of recovery have begun to manifest. While the overall sales volume decreased, some regions registered an increase in purchase requests, particularly from expatriates or investors looking to capitalize on temporarily reduced prices. However, this recovery remains uneven and heavily dependent on the country's future stability.

The future of the real estate market in Israel is fraught with uncertainties. Regions close to the Gaza Strip have been particularly affected, with a noticeable drop in property prices in areas such as Sderot, Ashkelon, and Ofakim. Areas that were once thriving have experienced a reversal of their dynamics. In some parts of the south, for instance in Ashdod, prices have dropped by 10-15% since the beginning of the conflict. Conversely, in other southern areas such as Be’er Sheva, the price of rental apartments has increased by approximately 2%, due to the relocation of many residents from cities and kibbutzim close to Gaza.

Presently, the Israeli real estate market stands at a crossroads, grappling with significant challenges and uncertainties. The previous stagnation, exacerbated by the direct and indirect impacts of the war, have given rise to an unprecedented situation. The forthcoming months will be crucial for assessing the long-term impact of these events on the market and observing the responses of homeowners, companies, and regulators to this period of turbulence. It is crucial for policymakers to understand these complex dynamics to facilitate a stable and sustainable recovery of the Israeli real estate market.

Analysis of the real estate market in Israel: property sales between March and May 2023. Trends and statistics are based on the CBS. Stay informed with Immo Israel.

Israeli Real Estate Market: March-May 2023

The real estate market in Israel is showing interesting trends in the new housing sector. The most recent data available is from March to May 2023 and reveals significant market developments.

During this period, 6,570 new homes were sold, representing a decrease of 17.9% compared to the previous three months (December 2022 to February 2023) during which 8,010 homes had been sold. However, after seasonal adjustment, it appears that 7,220 homes were sold, which represents a more moderate decrease of 5.5% compared to the 7,630 homes sold in the previous three months.

In May 2023, 2,176 new homes were sold, which represents an increase of 46.8% compared to April 2023. This increase in sales in May compared to April is likely due to the fact that April was a month full of holidays, with very few working days.

An interesting trend concerns homes subsidized by the government. Over the past three months, 27.2% of the new homes sold were subsidized, an increase of 16.8% compared to the previous three months. This demonstrates the government's commitment to promoting housing accessibility by offering financial incentives to potential buyers.

Geographical Distribution of Real Estate Sales

Geographically, the southern region of Israel was the most active sales location, accounting for approximately 29.3% of new real estate transactions. The central region also had a significant share of sales - approximately 22.2%. The Jerusalem and Haifa districts experienced the most significant decreases in sales compared to the previous three months, 53.4% and 39.7% respectively.

New apartments sold by district, March-May 2023 vs December-February 2022

In terms of properties still available for sale, as of the end of May 2023, approximately 57,282 apartments were still available on the market, with an average monthly supply period of 23.6 months. Over half of these homes were located in the Tel Aviv (29.5%) and Central (23.9%) districts, thus offering many options to potential buyers in these regions.

Remaining apartments for sale by district in Israel - May 2023

Certain cities stood out with a high number of apartment sales during this period. Netivot recorded 448 sales, followed by Ashkelon with 420 acquisitions, and Jerusalem with 410. These cities offer attractive opportunities for potential buyers looking for a new property.

Israeli cities with over 150 apartments sold, March-May 2023 vs December-February 2022

In conclusion, the real estate transaction data from March to May 2023 in Israel reveal interesting trends. Despite a slight overall decline, some regions and cities actually experienced an increase in real estate transactions. The plentiful supply of available apartments offers numerous options to potential buyers. It will be interesting to follow the evolution of the real estate market as new data become available and economic and social factors continue to shape the real estate landscape in Israel.

Disclaimer : Please note that the data used in this article is based on information provided by the Israel Central Bureau of Statistics (CBS) and is considered reliable. However, slight variations or subsequent updates may impact the exact figures.

Analysis of the real estate market in Israel: apartment sales from January to March 2023. Trends and statistics based on CBS data. Stay informed with Immo Israel.

Real Estate Market in Israel: January-March 2023

The first months of 2023 have provided interesting insights into the Israeli real estate market. Despite some stability, a few notable trends have emerged. In this article, we will delve into the numbers to learn about apartment sales from January to March 2023 and examine key factors influencing the real estate market.

The real estate market in Israel experienced a certain level of stability during the first three months of 2023, with a similar number of new apartment sales compared to the end of the previous year. Between January and March 2023, a total of 7,960 new apartments were sold, a figure close to the one recorded in the preceding three months, October and December 2022, during which 7,920 apartments were sold. This stability indicates continuity in the real estate market, with sustained demand despite economic challenges.

It is worth noting that there was a significant increase in sales in March 2023 compared to February 2023, with 2,790 new apartments sold, representing a 9.4% increase. This increase suggests a renewed confidence of buyers in the real estate market, with growing interest in property purchases.

Approximately 23.7% of the new apartments sold between January and March 2023 were subsidized by the government. This share represents a significant increase of 35.5% compared to the preceding three months, highlighting government efforts to facilitate affordability for low-income buyers.

Around 29.1% of the new apartments sold were located in the southern district, while the central district accounted for approximately 19.3% of the sales. These figures demonstrate sustained demand in these specific regions, with attractive real estate opportunities.

New Apartments Sold by District, January-March 2023 compared to October-December 2022

Nearly one-third of all new apartments sold between January and March 2023 were located in the cities Jerusalem, Netivot, Ashkelon, Petah Tikva, and Ramat Gan. This indicates that these cities are particularly attractive to buyers looking for new properties.

At the end of March 2023, approximately 54,500 apartments were still available on the market. This equates to around 21 months of monthly inventory, indicating abundant supply for potential buyers.

Over half of the remaining apartments for sale were located in Tel Aviv (29.6%) and the Central (23.8%) district. The number of available properties of all types offer a variety of options to potential buyers.

Remaining Apartments for Sale by District - March 2023

New Apartments Sold, Original Data and Trends

* The slump in early 2020 corresponds to the global COVID-19 pandemic and the lockdown period in Israel.

Certain cities stood out with a high number of apartment sales between January and March 2023. Jerusalem recorded 865 sales, closely followed by Netivot with 818 sales. Ashkelon and Petah Tikva also garnered significant interest, with 425 and 404 apartments sold, respectively. Significant increases in sales were observed in Netivot, Kiryat Bialik, Beer Sheva, and Petah Tikva compared to the previous three months, indicating the growing appeal of these cities.

Cities with Over 150 Apartments Sold, January-March 2023 compared to October-December 2022

The apartment sales between January-March 2023 provide an interesting insight into the real estate market in Israel. Despite overall stability, certain factors influenced the trends, such as the increase in sales in March, the growing share of subsidized apartments, and the concentration of sales in specific cities. There remains an abundant supply of available apartments, offering potential buyers plenty of options. It will be interesting to monitor the evolution of the real estate market as new data becomes available and economic and social factors continue to shape the real estate field in Israel.

We encourage you to watch out for Immo Israel's monthly reports in order to stay informed about developments in the market. They will provide you with up-to-date data and help you seize opportunities in the Israeli real estate market and be sure to make informed decisions regarding your real estate investments.

Disclaimer: The data and statistics used in this article are based on information provided by the Israeli Central Bureau of Statistics (CBS). While these data are deemed reliable, there may be variations or errors in the figures. Readers are encouraged to directly consult the CBS website for the most recent and accurate data. The author of this article and Immo Israel cannot be held responsible for the use or interpretation of the information presented in this article.

Analysis of housing prices in Israel (May 2023): trends, variations by district, and most expensive cities. Stay informed with Immo Israel.

Recent Trends in Housing Prices in Israel - May 2023 | Immo Israel

Welcome to the Immo Israel blog, where we explore the latest trends in housing prices in Israel. In this article we will delve into the available data for February and March 2023, and compare the prices to last year. You will also become acquainted with the average prices of national transactions and in various districts, with an overview of the most and least expensive cities in the country.

Comparison of data regarding transaction prices between February and March 2023 to January and February 2023, available from the Israeli Central Bureau of Statistics (CBS), reveals that average housing prices have not changed. This stability in prices reflects a period with minimal fluctuations, providing some assurance to buyers and sellers in the real estate market.

Discover the latest Israeli real estate trends and statistics for 2024 in our must-read article.

Figure 1: Monthly Percentage Variation in the Housing Price Index

* The data for the last quarter is not final as additional transactions took place during this period but have not yet been reported. This applies to all upcoming graphs.

Housing prices in Israel remained relatively stable between February and March 2023 compared to January-February 2023. However, comparison to the same period in 2022 reveals a significant increase of 11% in housing prices.

Figure 2: 12-Month Percentage Variation in the Housing Price Index

Comparison of prices by areas in Israel reveal fluctuations in prices in different districts. Jerusalem, the North, and Haifa experienced a slight increase in prices, with rises of 0.4%, 0.8%, and 0.7% respectively. On the other hand, the Center, Tel Aviv, and the South recorded a slight decrease in housing prices, with decreases of −0.1%, −0.3%, and −0.2% respectively. The index for new housing prices, according to the CBS, shows a slight increase of 0.1% between February and March 2023 compared to January-February 2023.

During the first quarter of 2023, the average transaction price nationwide reached 1,969,800 NIS, marking an increase of 1% compared to the previous quarter and 9.3% compared to the first quarter of 2022.

Examination of average prices in the major cities in Israel reveal the following figures:

We can see that prices in major cities (over 100,000 residents) such as Tel Aviv, Herzliya, Ramat Gan, Kfar Saba, and Netanya are quite high. On the other hand, Beer Sheva, Ashkelon, and Haifa are among the more affordable cities in terms of housing.

In conclusion, recent data on housing prices in Israel reveal an overall upward trend, although variations exist from one district to another. If you are looking for real estate in Israel, it is important to take these into account. Immo Israel's unique search engine offers a convenient and efficient way to explore a wide selection of properties throughout the country. 

Don't miss the opportunity to discover real estate in Israel, and stay updated with our upcoming articles!

Disclaimer : The data and statistics used in this article are based on information provided by the Israeli Central Bureau of Statistics (CBS). While these data are deemed reliable, there may be variations or errors in the figures. Readers are encouraged to directly consult the CBS website for the most recent and accurate data. The author of this article and Immo Israel cannot be held responsible for the use or interpretation of the information presented in this article.

Recent Trends in Housing Prices in Israel - May 2023