The latest real estate market trends, as compiled by “Globes” from the Central Bureau of Statistics and Israel Tax Authority data, reveal surprising shifts in property sales across Israeli cities since October 7, coinciding with the Israel-Hamas conflict. These trends indicate a complex interplay of factors influencing the real estate sector, extending beyond the immediate impacts of the conflict.
Jerusalem leads the pack with 174 homes sold since the conflict’s onset, despite a 47% drop from its monthly average of 328 housing transactions. Haifa follows, recording 148 home sales, a 48.2% decrease from its usual monthly figures. Petah Tikva, Beersheva, Netanya, and Holon also show significant declines in property deals, with Beersheva notably outperforming Tel Aviv in terms of sales volume.
Tel Aviv, in a surprising turn, ranks seventh with only 53 homes sold during this period, a steep 65.6% fall from its monthly average. This drop is attributed not just to the conflict but also to ongoing economic challenges, including the high-tech crisis and rising interest rates, which have curtailed buyer affordability. The downturn in Tel Aviv’s property sales predates the conflict, suggesting deeper, systemic issues in the city’s real estate market.
Ashkelon and Ashdod, despite being primary targets during the conflict, still managed more deals than Tel Aviv, although they too experienced significant declines. Rishon Lezion’s real estate market has similarly slowed down, with a 68.5% decrease in sales from the monthly average.
The broader picture of the Israeli housing market post-conflict remains uncertain. Challenges such as economic instability, high interest rates, and the potential long-term effects of the conflict are likely to continue influencing buyer and developer behaviors. The market’s resilience and its ability to rebound to pre-war levels are yet to be seen, with many variables at play in this complex economic landscape.
