Top 10 Neighborhoods Where Real Estate Prices Are Plummeting
Translated & summarized from Ice by baba
Real estate prices are significantly declining in 10 Israeli neighborhoods, with the largest discounts seen in Ashkelon, Tirat Carmel, and Tel Aviv's Old North. Data from Madlan indicates a strong buyer's market in 2024, with average discounts doubling since 2022. Only 8.4% of deals are closing at the original asking price, forcing sellers to offer substantial concessions.
The story in 5 lines · by baba
- Real estate prices are significantly dropping in 10 Israeli neighborhoods, favoring buyers.
- Ashkelon's Afidar South and Tirat Carmel's HaHotrim complex show the largest percentage price drops.
- Tel Aviv's Old North saw the largest discount in absolute terms, averaging NIS 270,000 per apartment.
- The average discount on second-hand apartments has reached 4.8%, double the 2022 rate.
- Only 8.4% of current real estate transactions are closing at the seller's original asking price.
Real estate prices are experiencing significant drops in specific neighborhoods across Israel, indicating a buyer's market, according to data from Madlan. The analysis identifies the top 10 areas where the gap between the seller's asking price and the buyer's final payment is the largest, reflecting substantial discounts.
While one might expect the most significant price drops to occur in the expensive central region, the data shows otherwise. The top three neighborhoods with the steepest price declines are not concentrated in the center. Afidar South in Ashkelon leads with a 7.6% price reduction, followed by the HaHotrim complex in Tirat Carmel at 6.6%. Old North in Tel Aviv ranks second, with an average discount of NIS 270,000 on a typical apartment, approximately double the discount in Tirat Carmel and 2.5 times that in Ashkelon.
Other areas experiencing notable price decreases include the city centers of Nahariya and Kiryat Ata, with prices falling by 6.3%. Yizre'elia in Haifa saw a 6% drop, and Neighborhood B in Be'er Sheva experienced a 5.5% decrease, though the absolute discount was only NIS 52,000 due to lower property values. Neot Shokeda in Rishon LeZion and the city center of Netanya also feature on the list with price drops between 5.5% and 5.8%, with Neot Shokeda seeing a discount of about NIS 150,000.
Madlan's CEO, Tal Koppel, stated that 2024 so far is clearly a buyer's market, with the average discount on second-hand apartments jumping to 4.8%, double the rate seen in 2022. Dramatically, only 8.4% of transactions are currently closing at the original asking price, forcing sellers, especially those under time or tax pressure, to make significant concessions.
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