Israel's Real Estate Market Faces Slowdown, Tel Aviv District Leads in Unsold Homes
Translated & summarized from Cursorinfo by baba
Israel's real estate market is slowing down, with 85,080 new apartments unsold as of September, according to the Central Bureau of Statistics. The Tel Aviv district has the highest concentration of unsold units at 31.2%. Total apartment sales decreased by 5.7% from the previous quarter, though seasonal adjustments show a slight increase. Jerusalem and Tel Aviv-Jaffa have the most unsold new apartments in major cities.
The story in 5 lines · by baba
- Around 85,080 new apartments remained unsold in Israel as of September, indicating a market slowdown.
- The Tel Aviv district accounts for 31.2% of all unsold new apartments, totaling approximately 26,500 units.
- Total apartment sales in July-September decreased by 5.7% compared to the previous quarter.
- Jerusalem and Tel Aviv-Jaffa have the highest numbers of unsold new apartments among cities over 100,000 residents.
- The Central district also shows a high concentration of unsold apartments, at 24.8% of the total.
Israel's real estate market is experiencing a slowdown, with a significant number of new apartments remaining unsold, according to data from the Central Bureau of Statistics (CBS) covering July to September. As of the end of September, approximately 85,080 new apartments were on the market, with an estimated 25.8 months needed to sell them all. The Tel Aviv district is disproportionately affected, accounting for 31.2% of these unsold units, totaling around 26,500 apartments. The Central district follows, with 24.8% or 21,070 unsold apartments.
Despite the overall slowdown, sales of elite properties in Tel Aviv have helped mitigate a further increase in unsold units. In the July-September period, about 21,750 apartments were sold, a 5.7% decrease from the previous quarter and a 7.3% drop compared to the same period last year. However, after accounting for seasonal factors, sales showed a 2.6% increase.
New apartments constituted 42.3% of all transactions, with 35.7% of these sales occurring under government subsidy programs. New construction sales decreased by 7.2% compared to the April-June period but rose 4% year-over-year and 10.7% after seasonal adjustment. The secondary market saw 12,560 apartment sales, representing 57.7% of total deals, a 4.5% decrease from the previous quarter.
Geographically, the Southern and Central districts led in total sales during the third quarter, with 23% and 22.1% respectively. For new apartments, the Southern district led with 26.2%, followed by the Central (20.3%) and Haifa (16%) districts. The Central district also led in secondary market transactions with 23.5% of deals.
Among cities with over 100,000 residents, Jerusalem has the most unsold new apartments with approximately 10,190 units, closely followed by Tel Aviv-Jaffa with about 10,070. Kiryat Gat leads in unsold new apartments outside major cities, with 3,170 units.
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