Housing deals in Israel hit lowest ebb for decades

New Bnei Brak housing project Photo: PR

In April 2020, there were just 2,100 housing deals, the Ministry of Finance chief economist reports, down 80% from April 2019.

In April 2020, there were just 2,100 housing deals, the Ministry of Finance chief economist reports, down 80% from April 2019. This compares with 8,000-9,000 deals in a busy month and 4,000-5,000 during slacker periods. Not only did the coronavirus pandemic dampen the market but the Ministry of Finance chief economist found that 25% of the people who did complete the purchase of a home had been put on unpaid leave or lost their job altogether.

The Ministry of Finance chief economist wrote, "This is the lowest level recorded in the local real estate market since at least 2000. It is even significantly lower (50%) than the previous low point in September 2002, which was influenced by the events of the Second Intifada and the small number of workdays because of the Tishrei Jewish holidays (just as Passover occurred during this April). We do not have clear figures for the 1990s but even during that period it doesn't seem like there was such a low point in the number of deals."

During April, 575 new apartments were purchased, down 79% from April 2019, of which 380 were as part of the Buyers Fixed Price program. Investors bought 245 apartments in April and sold 527. Young couples bought 965 apartments in April down 77% from April 2019.

Published by Globes, Israel business news - en.globes.co.il - on June 11, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

New Bnei Brak housing project Photo: PR
New Bnei Brak housing project Photo: PR
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