Rising Sales Amid Challenges
The Israeli real estate market is showing signs of recovery despite ongoing geopolitical and economic challenges. In May 2024, there has been a significant increase in real estate transactions, particularly in major cities like Jerusalem and Haifa. This rise is attributed to increased demand in the face of limited new construction supply, exacerbated by delays in ongoing construction projects.
Construction Delays and Delivery Issues
Delays in the delivery of real estate projects remain a major issue. According to a letter from Raul Srugo, President of the Contractors Association, to Prime Minister Netanyahu, most construction projects are experiencing delays of six to eight months. These delays are primarily due to the construction crisis, which has been intensified by geopolitical tensions and current economic difficulties.
Impact of High Interest Rates
High interest rates continue to challenge potential buyers. However, despite these rates, the fear of a housing shortage is pushing many buyers to proceed with real estate transactions now, anticipating continuous price increases.
Government Initiatives
The Israeli government has announced measures to revitalize the real estate industry. These measures include significant subsidies for construction in peripheral areas and the introduction of tens of thousands of foreign workers to accelerate ongoing projects.
Recent Transactions
Recent transactions illustrate the market’s diversity. In Beersheba, a three-room apartment near Ben-Gurion University sold for 700,000 NIS (approximately $191,000). In Haifa, a renovated two-room apartment with a sea view is currently rented for 2,400 NIS per month (approximately $653).
In conclusion, despite persistent challenges, the Israeli real estate market presents interesting opportunities for buyers and investors. Government initiatives and increasing demand, especially in major cities, suggest a positive dynamic for the coming months.
