Israeli Cities Offer Tax Breaks to Boost Housing Market
Translated & summarized from Ice by baba
The Israeli government is offering tax breaks of 16%-18% in southern cities like Ofakim and Netivot to make housing more affordable. Recent sales in these areas include a 4-room apartment in Ofakim for 600,000 shekels and a 2-room apartment in Netivot for 650,000 shekels. Beer Sheva has seen lower-priced sales, such as a 2-room apartment for 495,000 shekels, but without the tax incentives. Prices in cities like Haifa and Holon remain significantly higher, with apartments selling for over a million shekels.
The story in 5 lines · by baba
- Israeli cities Ofakim and Netivot offer 16%-18% tax breaks on housing purchases.
- A 4-room apartment in Ofakim sold for 600,000 shekels, while a 2-room in Netivot sold for 650,000 shekels.
- Beer Sheva saw a 2-room apartment sell for 495,000 shekels, but without tax incentives.
- A 4-room apartment in Haifa sold for 1.28 million shekels, reflecting higher central market prices.
- Tax savings in the south can amount to thousands of shekels per month for homeowners.
In an effort to make housing more affordable, the Israeli government is offering significant tax benefits to buyers in southern cities like Ofakim and Netivot. These incentives, ranging from 16% to 18% in tax savings, can amount to thousands of shekels per month, making homeownership more accessible for those with lower incomes or who are priced out of more expensive areas.
While these tax breaks are not available in Beer Sheva, the city has seen some relatively low-cost transactions recently. A 45-square-meter, two-room apartment on Shimon Bar Giora Street sold for 495,000 shekels, and an 80-square-meter, three-room apartment in the V neighborhood was purchased for 700,000 shekels. In contrast, a larger, 154-square-meter, 5.5-room apartment with modern amenities on Ali Davis Street in the Ramat Mishal neighborhood was listed at 1.58 million shekels.
In Ofakim, a 4-room, 80-square-meter apartment on Chori Street sold for 600,000 shekels. Netivot has also seen similar price points, with a 43-square-meter, two-room apartment on Hazani Street selling for 650,000 shekels and an 84-square-meter, four-room apartment on Tzaban Street going for 675,000 shekels.
Some recent transactions highlight the appeal of these lower-priced areas combined with tax incentives. One buyer secured an 81-square-meter, four-room apartment for 680,000 shekels, also benefiting from the state's tax advantages. Another 4-room apartment, built in 2021, was sold for 677,000 shekels on Ariel Sharon Street in Mevo Yoram, representing a significant gain for the buyer due to the tax benefits.
Meanwhile, housing prices in more central and northern areas remain considerably higher. In Haifa, a 4-room, 90-square-meter apartment on Derech Yad Le'Banim sold for 1.28 million shekels, and another 4-room apartment of 81 square meters on Yoav Street was listed at 1.345 million shekels. In Holon, a 2-room, 50-square-meter apartment on Har Ha'Tzofim street was sold for 1.6 million shekels. Bat Yam saw a 3.5-room, 70-square-meter apartment on November 29th Street sell for 1.635 million shekels.
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