Kiryat Gat Leads Israel in New Home Sales, Driven by Subsidized Housing

Kiryat Gat has emerged as the surprising leader in new apartment sales in Israel, surpassing even Tel Aviv in a recent quarter. Between June and August, 1,044 new apartments were sold in the southern city, a significant jump from the 329 sold between March and May. This represents a more than 200% increase in sales within a single quarter, making Kiryat Gat the national leader.

The surge is largely attributed to the "Dira B'Heshbon" (discounted apartment) program, according to the Ministry of Finance. The ministry reported that only 167 new apartments were sold on the free market in Kiryat Gat during the June-August period. The vast majority of the 1,044 sales were part of subsidized housing projects, where hundreds of contracts were signed. Without these subsidized sales, Kiryat Gat would rank low in sales figures.

Kiryat Gat's appeal has grown due to its relatively affordable housing compared to other southern cities and its perceived safety from missile threats, attracting residents from areas closer to the Gaza Strip. The city has seen substantial development, particularly in the new Carmei Gat neighborhood, which initially offered lower prices and attracted many buyers. Currently, Kiryat Gat has 2,930 new apartments available for sale, most likely intended for the free market.

While new subsidized sales are inflating the numbers, the resale market in Kiryat Gat also shows signs of activity, with a nearly 37% increase in sales from 149 units in the previous quarter to 204 units in the June-August period. However, this increase is not as dramatic as the surge in new subsidized apartment sales.

Other cities also experienced significant growth in new apartment sales, including Netanya, Herzliya, Acre, Eilat, and Bnei Ayish. Tirat Carmel saw a remarkable over 1,000% increase in sales, largely due to a presale event, and Rekhasim also reported a substantial rise, with many sales also under the discounted housing program.