The Chief Economist Division of the Ministry of Finance publishes this morning (Tuesday) the survey of the real estate industry for November 2021, which set a new record with the purchase of 18.2 thousand apartments, a historical level of transactions in the real estate market, largely against early investor purchases The entry into force of the purchase tax increase on 28 November.
Compared to November 2020 it is an increase of 62% and compared to the previous month it is an increase of 27%. After deducting transactions under the “price per occupant”, the number of transactions in the free market was 17,000, an increase of 66% compared to November 2020 and an increase of 26% compared to the previous month.
Investor acquisitions in November reached an exceptional level of 6.7 thousand apartments, an increase of about 200% compared to November 2020 and an increase of 41% compared to the high level recorded in the previous month. At the rate of total transactions, the weight of investors last November was 37%, an increase of 17 percentage points compared to November 2020.
A bi-monthly review of investor acquisitions in October-November, compared to the two months prior to the tax increase at the end of June 2015, found that investors’ purchases before the last tax increase in November were 5% higher. In the peripheral areas, the increase in investor purchases is significantly higher than in the demand areas in the center of the country, and is significantly higher compared to June 2015.
Tel Aviv continues to lead investor acquisitions, followed by Jerusalem, Haifa, Beer Sheva and Bat Yam. Dimona stands out in joining the list of the top twenty cities in investor acquisitions, with the highest growth rate compared to November 2020.
The number of investment apartments sold – the highest in the last decade
Investor sales in November stood at 3.9 thousand apartments, the highest level in the last ten years and 88% increase compared to November 2020. The sharp increase in investor sales is likely explained at least in part by taking advantage of high demand from investors who want to enter the market before raising purchase tax.
Contractor sales in November totaled 6.7 thousand apartments, the highest monthly level in new apartment sales in at least the last twenty years. Compared to November 2020 this is a sharp increase of 65%. This also recorded a record level in the potential cash flow from these sales, which amounted to NIS 14.5 billion in November.
“First apartment” purchases amounted to 6.1 thousand apartments, the highest level in these purchases at least since the beginning of the previous decade. After deducting the purchases under the “price per occupant”, the purchases of young couples in the free market amounted to 4.9 thousand apartments, with the increase in these purchases being particularly noticeable in the peripheral areas. Purchases of housing improvers amounted to 5.4 thousand dwellings, also the highest level in these purchases at least since the beginning of the previous decade and an increase of 34% compared to November 2020.
In November, the highest level of transactions in the real estate market was recorded, when they reached 18.2 thousand, against the background of a wave of investor acquisitions before the entry into force (November 28) of the new tax rates on apartments purchased for investment (this rate was raised from tax rate In this context, it should be noted that the previous record level in real estate market transactions was recorded in June 2015, during which 17,000 apartments were purchased, also against the background of early purchases by investors before raising the purchase tax (last tax increase, at the end November, returned the purchase tax brackets to their level at the end of June 2015, after these were lowered at the end of July 2020).
Compared to November 2020, there was a 62% increase in total transactions and a 27% increase compared to the previous month (October 2021), which was also in itself one of the highest recorded in the real estate market. In November by 17,000, an increase of 66% compared to November 2020 and an increase of 26% compared to the previous month.
Compared to the level of transactions that characterizes the months of November in the last ten years, the level of transactions in last November is double this multi-year average. The level of transactions in second-hand apartments only last November is higher than the total transactions in November in the last twenty years. From the beginning of the year to November of 2021, 139,000 apartments were purchased, the highest annual level, at least in the last twenty years.