New home sales in Tel Aviv plummet

Tel Aviv credit: Shutterstock Teo K
Tel Aviv credit: Shutterstock Teo K

Tel Aviv, which comfortably led the market in the past few years, reached only eighth place for new home sales in December 2022-February 2023.

Sales of new apartments in Tel Aviv have plummeted, and the city, which led the residential real estate market in the last few years, reached only eighth place in the Central Bureau of Statistics table of sales of new homes in the three month period December 2022-February 2023.

Jerusalem heads the table for that period, with 885 sales. Then come Netivot (492), Petah Tikva (343), Ashkelon (299), and Ramat Gan (280). In Tel Aviv, only 245 new apartments were sold in the period, down from 1,042 in December 2021-February 2022, when Tel Aviv led the table.

On a district level too, the Tel Aviv district saw a steep decline in sales, although not as great as in the city itself. The year-on-year decline was 46%, to 1,211 new apartments sold in December 2022-February 2023. Nationwide, the decline was 39%.

The stock of unsold homes held by real estate developers in February was 54,500, a four-year peak, and a result of a faster rate of building starts than of sales.

According to Central Bureau of Statistics figures, at the end of January this year there was a stock of some 15,000 unsold homes in the Tel Aviv district, indicating accumulating excess supply.

While purchases of new homes in Tel Aviv are declining, on a national level the decline, which began in the final quarter of 2021, has halted for now, according to the Central Bureau of Statistics numbers. 2,506 new homes were sold in February, which, in the trend figures, represents a 1% increase over January. This is the first monthly rise in sales in eighteen months.

Has the trend changed? It appears that the many special sales campaigns have succeeded in putting the brakes on the decline, which in the second quarter of last year reached more than 6% a month. Nevertheless, the special offers and discounts will probably have to continue, and even grow, to keep new home sales at a reasonable level, and the market is a long way from such a level at the moment. Sales in February this year were about a third lower than in February 2021 and 2022.

Published by Globes, Israel business news - en.globes.co.il - on April 20, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

Tel Aviv credit: Shutterstock Teo K
Tel Aviv credit: Shutterstock Teo K
Israeli apartments Credit: Shutterstock Apartments sold and rented

A selection of recent real estate deals in Israel in Kfar Saba, Even Yehuda, Rishon Lezion, Hadera, Haifa and Tzfat.

Jerusalem's Midtown project credit: DBLD architects Foreign residents dominate Jerusalem city center housing market

Wealthy foreign residents are increasingly pricing residents out of the market in central neighborhoods, as ghost apartments haunt the city.

Egyptian tanks in Sinai near Rafah credit: Reuters Mohamed Abd El Ghany Egyptian military violations in Sinai concern Israel

President Donald Trump's relocation plan for Gazans is further straining fraught relations between Israel and Egypt. "Globes" examines whether it could spark a war.

Yitzhak Tshuva credit: Gidon Levy and Tali Bogdanovsky Isracard shareholders approve acquisition by Delek

For the deal to go through, approval is now needed from the Supervisor of Banks and the Israel Competition Authority.

Air Canada Photo: Shutterstock Air Canada to resume Israel flights in June

The Canadian airline will resume Toronto-Tel Aviv flights on June 8 and Montreal-Tel Aviv flights in August.

NICE CEO Scott Russell credit: SAP NICE Systems falls sharply on disappointing 2025 guidance

NICE sees $693-703 million revenue in the first quarter of 2025, up 6% from the corresponding quarter of 2024, with non-GAAP earnings per share of $2.78-2.88 - 3.8% below the analysts' consensus for revenue and 2.4% below for profit.

Tel Aviv credit: Shutterstock Urban renewal plan approved in heart of Tel Aviv

The plan for the Hahashmal neighborhood opposite the Old Central Bus Station includes a 30-floor tower.

Smartshooter credit: Smartshooter Germany buys Kibbutz Yagur's Smartshooter AI sights

The product family includes systems mounted on personal rifles, remotely controlled systems, and systems carried by vehicles, robots, and even drones.

Chinese ship in Suez Canal credit: Suez Canal Authority Direct shipping to Israel could resume soon

The first shipments of vehicles are likely to reach Israel via the Suez Canal in the coming months.

Sde Dov credit: Guy Yehieli Sde Dov land prices down over 40%

Four huge tenders for almost 4,000 homes, which have been successfully marketed in the north Tel Aviv district, reflect prices over 40% lower than in 2022.

Wix president Nir Zohar credit: Alan Tzatzkin Wix provides cautious 2025 guidance after strong 2024

The Israeli website building platform company reported its first-ever GAAP operating profit in 2024.

Saar Yoskovitz and Gal Shaul  / Photo: Augury Israeli industrial AI co Augury raises $75m

The new round represents an increase in valuation for Augury, which maintains its position as a ‘unicorn’ startup.

Eitan Yochananof and Eyal Ravid credit: Eyal Izhar and Tali Bogdanovsky Regulator indicts Victory, Yochananof CEOs over price fixing

The Israel Competition Authority today issued first indictments, following the food price fixing investigation.

Shekel credit: Shutterstock Vladirina 32 Shekel gains continue as Gaza talks progress

The shekel continues to trade at its strongest levels against the dollar since early 2023.

New York credit: Shutterstock Tel Aviv - New York fares stay high despite US airlines return

Ticket prices to the US will continue to cost at least $1,200 return, according to Ophir Tours, with most fares ranging between $1,500 and $2,000, or even more.

Greenfield Partners team credit: Eyal Toueg Greenfield Partners closes $400m third fund

The funds were raised from institutional investors in Israel, the US, Europe and Asia and brings the total funds under management to more than $1 billion.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018