The boom in the construction industry continues, and this can be seen from data from the Ministry of Finance published yesterday. The purchase of apartments in November jumped by 62% compared to November 2020 and amounted to a peak of 18,200 apartments. This is according to data from the chief economist at the Ministry of Finance. The explanation is largely in advance of investors’ purchases before the entry into force of the purchase tax increase on November 28. Compared to October, this is an increase of 27%.
After deducting price-per-tenant transactions, the number of transactions in the free market was 17,000. Due to the increase in the purchase tax, investors ‘purchases reached an exceptional level of 6,700 apartments in November, an increase of about 200% compared to November 2020. Tel Aviv continues to lead investors’ purchases, followed by Jerusalem, Haifa, Beer Sheva and Bat Yam.
The contractors’ sales in November also amounted to 6,700 apartments, and this is a cash consideration of NIS 14.5 billion. This is the highest monthly level in the last 20 years. Compared to November 2020, this is a sharp increase of 65%. Reports from listed companies such as Azorim, Shikun VeBinui, Damari and Praszkowski, which have been launched since the beginning of 2022, confirm this data.
Purchases of a first apartment amounted to 6,100, and after deducting purchases within the price per occupant, the purchases of young couples in the free market amounted to 4,900 apartments. The increase in these purchases is particularly pronounced in peripheral areas. Purchases of housing improvers totaled 5,400 apartments.