Rising real estate (pngwing photo)
In November, 18.2 thousand apartments were purchased, a historical record level of transactions in the real estate market, largely against the background of early acquisitions of investors before the entry into force of the purchase tax increase on November 28. Compared to November 2020 this is an increase of 62% and compared to the previous month. 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.
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As a percentage of total transactions, the weight of investors last November was 37%, an increase of 17 percentage points compared to November 2020. A bi-monthly examination of investors’ purchases in October-November, compared to the two months before the tax increase at the end of June 2015, In November, 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 than in June 2015. The city of Tel Aviv continues to lead investors’ purchases, 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.
Investor sales in November stood at 3.9 thousand apartments, the highest level in at least the last ten years and an 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 wanting 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 4.5 thousand dwellings, also the highest level in these purchases at least since the beginning of the previous decade and an increase of 4 compared to November 2020.
When examining the level of transactions in second-hand apartments in November compared to that of June 2015, according to real estate taxation areas, the fact is noticeable that in the peripheral areas the level of transactions is higher in November this year, and vice versa in demand areas in the center. For example, while in the Haifa and Be’er Sheva areas, the level of transactions in second-hand apartments last November is 25% and 17% higher, respectively, compared to June 2015, when in the Hadera area this gap is as high as 45%, in the Tel Aviv and Central areas The transactions in second-hand apartments last November at a rate of about 30% from that recorded in June 2015. The Be’er Sheva and Haifa areas are also leading the sale of second-hand apartments in November.
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