Kiryat Gat Leads Israel in New Apartment Sales, Surpassing Tel Aviv and Jerusalem

New data from the Central Bureau of Statistics reveals that Kiryat Gat unexpectedly topped the list for new apartment sales between June and August, with 1,044 units sold. This surge is likely attributed to a large-scale sale of discounted apartments under the "Apartment at a Discount" program. Tel Aviv followed in second place for new homes, selling 878 units, with Haifa and Petah Tikva also ranking high.

In contrast, Jerusalem led the market for second-hand apartment sales during the same period, recording 898 transactions. Haifa came in second with 847 units sold, followed by Beersheba and then Tel Aviv. Jerusalem's relatively lower ranking in new apartment sales, with 400 units, is notable given its traditional competition with Tel Aviv for the top spot.

Overall, approximately 24,200 apartments were sold from June to August, an 11.1% increase from the previous quarter. However, when accounting for seasonality, there was a 2.9% decrease in transactions. Compared to the same period last year, sales rose by 8.1% to 8.5% both with and without seasonal adjustments.

Despite these increases, the apartment market remains in a deep slump, with transaction volumes about a third lower than the peak in mid-2021 and resembling levels seen in 2017-2018. The pace of new construction still exceeds sales, leading to a growing inventory of unsold new apartments, which stood at around 86,000 in August. At the current sales rate, it would take developers over two years to sell this stock, with a significant portion concentrated in major cities like Jerusalem and Tel Aviv.