Real estate deal volume in Tel Aviv hits 15-year low

Tel Aviv luxury apartments
Tel Aviv luxury apartments

Housing prices in Tel Aviv fell 9% in 2017-2018, the Ministry of Finance reports.

The volume of real estate deals in Israel is still declining, and reached its lowest point since the social protests in 2011. As a result of the dearth of purchases by investors, the volume of deals in the second quarter of 2018 reached the lowest point since the beginning of the decade. The volume of purchases in the Tel Aviv region was the lowest since the days of the intifada and the recession in the first quarter of 2003, according to a survey of the second quarter of the year published by the office of the Ministry of Finance chief economist.

The review also states that according to an examination of the changes in prices in Tel Aviv, based on the Case-Shiller Index (an index that refers to successive deals for the same property over time), it appears that housing prices also fell considerably in the region. According to the review, while prices boomed 3.4-fold in 2000-2016, starting in the first quarter of 2017, the figures show that housing prices in the city have fallen by a cumulative 9%, including 1.1% in the second quarter of 2018.

The survey figures also indicate the possibility of a change in trend among those eligible for the Buyer Fixed Price Plan. A rise in the proportion of non-homeowners who bought homes on the free market, rather than in the framework of the government discounted housing plan, is visible. In the second quarter of 2018, 9,500 homes were purchased at market prices by people making their first purchases of a home, 3% more than in the corresponding quarter last year, following four consecutive quarters of decline.

This increase in purchases is concentrated in the secondhand housing market, not the new housing market, which explains the weakness in sales by contractors, despite the increase in housing purchases on the free market. Purchases of new housing at free market prices totaled 4,800 in the second quarter, down 6%, compared with the second quarter of 2017 and the lowest level since the waiting period for former Minister of Finance Yair Lapid's 0% VAT plan, when sales by contractors dropped precipitously.

1,700 discounted homes in the quarter

21,500 homes were purchased at market prices in the second quarter of the year (not including the Buyer Fixed Price Plan), 6% fewer than in the corresponding quarter in 2017. Discounted apartments sold in the second quarter totaled 1,700, making the total number of homes sold in the quarter 23,200, 12% fewer than in the first quarter of the year.

Published by Globes [online], Israel business news - www.globes-online.com - on September 12, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Tel Aviv luxury apartments
Tel Aviv luxury apartments
Emiliano Calemzuk  credit: PR CEO and "investor group" buying out Reshet 13

CEO Emiliano Calemzuk and the other investors will hold 74% of the television channel, while Len Blavatnik’s Access Industries and WBD will remain with 26%.

Inflation  credit: Tali Bogdanovsky Unexpectedly low February CPI reading cuts inflation

While inflation in Israel in the 12 months to the end of February 2025 is lower than forecast, housing prices continue to rise.

Yitzhak Tshuva credit: Gidon Levy and Tali Bogdanovsky Competition Authority allows Delek takeover of Isracard

The Competition Authority is considered the easier of the two regulatory hurdles that the deal must overcome, the other being the Supervisor of Banks.

David Amsalem  credit  Noam Moskowitz, Knesset Spokesperson's Office Rafael to pay state NIS 444m dividend

The minister in charge of the Government Companies Authority, David Amsalem, has approved the payment by the defense company.

Barak MX air defense system  credit: IAI IAI profit jumps 55%

Israel Aerospace Industries posted a net profit of $493 million for 2024, and ended the year with an all-time high orders backlog of $25 billion.

A TSG system in tactical use  credit: PR TSG signs cooperation agreement with US defense co

The agreement includes the integration of TSG's advanced technologies into sensor-based defense systems, which will be integrated into the operational systems of US defense units.

Bria CEO Yair Adato credit: Kseniia Poliak Israeli visual generative AI co Bria raises $40m

Bria’s Visual Generative AI platform empowers businesses to create predictable, controllable, and on-brand content that aligns with their visual language.

Amnon Shashua and Aviram Ziv credit: Eyal Izhar OrCam stymied by investor dispute with Shashua

Demands by institutional investors are blocking the visual and hearing impairment device developer's recovery plan.

Work on the Green Line credit: Bar Lavi Egged wins tender to operate TA light rail Purple, Green Lines

NTA awarded the tender to Egged, which already operates the Red Line, despite government ministry opposition to one operator for the entire network.

Gabi Seroussi illustration: Gil Gibli Board chooses Seroussi as IAI chair as Erdan freezes candidacy

Israel Aerospace Industries board chose Gabi Seroussi as chair even though he did not to go through the preliminary process of the Government Companies Authority appointments review committee.

Bavli Park penthouse credit: Eyal Tagar Tel Aviv Park Bavli penthouse sells for NIS 43m

A 44th floor penthouse in one of the two towers in businessman Yitzhak Tshuva's Park Bavli project has been bought by an Israeli businessperson.

El Al aircraft  credit: Yoav Yaari El Al pilots receive nearly NIS 250,000 bonus each

Thanks to the agreements signed with the unions in 2018, El Al's employees as well as senior management share in last year's success.

Pentera CEO Amitai Ratzon credit: Eyal Izhar Israeli security validation co Pentera raises $60m

Pentera's platform enables security teams to analyze complete attack paths, identify root causes, and prioritize remediation for effective risk reduction.

Tel Aviv credit: Shutterstock Supply of unsold new homes hits record

Israel's real estate market is sliding into recession with 78,000 unsold new apartments in January, the Central Bureau of Statistics reports.

D&B chairman Doron Cohen and Meitar partner Dan Geva Meitar reclaims title of Israel's biggest law firm

Meitar has first place with 537 lawyers, followed by Herzog Fox Neeman with 512 lawyers, according to the latest Dun's 100 rankings.

First International Bank of Israel CEO Eli Cohen  credit: Eyal Toueg First Int'l posts top return on equity

First International Bank of Israel's return on equity in 2024 was 19%, the highest among Israel's banks.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018