The Times of Israel’s regular feature on what is happening in the local property market right now

By Shoshanna Solomon Follow30 August 2024, 2:06 am

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A section of a prefabricated house is moved by crane in Israel, July 19, 2024. (Yossi Aloni/FLASH90)

Home prices in Israel continued their rise in May and June as a shortage of construction workers raised expectations of a housing supply shortfall, recent figures show.

Home prices rose 0.7% in May and June 2024 compared to the previous two months, marking the seventh time that two-month prices have risen in Israel since October-November 2023, after declining for much of last year, according to the Central Bureau of Statistics. Compared to the same period a year ago, May and June 2023, prices have risen 4.7%, the data showed.

When compared to the previous two months, prices in May and June rose 0.7% in the Jerusalem district, 0.5% in the Tel Aviv district, and 1.2% in the Haifa area.

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According to Finance Ministry data, in June this year 8,160 homes were sold, a 15% rise compared to the same period a year ago. Although the number of transactions compared to the previous year continues to increase at double-digit rates, the growth rate in June is the lowest since January this year, the ministry said.

Investor acquisitions in June rose 16% compared to the same month a year ago, a significantly lower increase than that recorded in the previous three months, said the ministry. Investor sales in June increased by 9% compared to June last year, lowering the total number of homes held by investors by 200 units during the month.

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Some of these investors were also foreign residents who bought and sold apartments in June, bringing net acquisitions in the month to 116 units. As in previous months, most were around Jerusalem, which accounted for almost half of all the acquisitions.

Sales

To provide the housing snapshot below, we use the Israel Tax Authority’s database, which records the actual prices paid for properties. The focus is on sales over the last month, July 24 to August 24, to present the most up-to-date picture of the market. Where available, the exchange rate at the time of the purchase, as it appears in the database, is used.

In Tel Aviv-Jaffa, a 90-square-meter (969-square-foot), four-room (three-bedroom) apartment at 9 Ma’apilei Salvador, in Jaffa, was sold for NIS 3,605,000 ($950,685) on July 30. The apartment is on the third floor of a seven-floor building built in 2023.

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A 64-square-meter (689-square-foot), three-room (two-bedroom) apartment at 26 Moshe Dayan Road was sold for NIS 2,000,000 ($527,426) on August 6. The apartment is on the second floor of a four-floor building built in 1970.

A 69-square-meter (743-square-foot), three-room (two-bedroom) apartment at 1 Snapir Street was sold for NIS 2,080,000 ($562,010) on August 22. The apartment is on the third of a four-floor building that was built in 1960.

Construction works on new housing in the southern Israeli city of Kiryat Gat, July 29, 2024. (Yossi Aloni/Flash90)

In Jerusalem, a 56-square-meter (603-square-foot), three-room (two-bedroom) apartment at 15 Afarsemon Street was sold for NIS 1,937,000 ($510,812) on August 1. The apartment, on the second floor of four, is in a building built in 1970.

In Haifa a 71-square-meter (764-square-foot), three-room (two-bedroom) apartment at 69 HaAliya HaShniya Street, in proximity of the Bat Galim promenade, was sold for NIS 1,200,000 ($328,497) on July 25. The apartment is on the second of a three-floor building built in 1970 and includes a parking space.

In Netanya a 92-square-meter (990-square-foot), four-room (three-bedroom) apartment at 5 Hanesher Street was sold for NIS 2,250,000 ($610,030) on July 25. The apartment is on the third of a three-floor building built in 1994.

Rentals

The database of real estate website Madlan was used to compile this sample of rental apartments on the market with a focus on three-room (two-bedroom) properties, suitable for a couple, two roommates, or a small family.

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In Tel Aviv, a 65-square-meter (700-square-foot), three-room apartment (two-bedroom) on Bograshov Street was put on the market for NIS 10,000 ($2,728) monthly. The air-conditioned unit is on the third floor in a building that is just a seven-minute walk from the beach and restaurants. It also has a small balcony, two bathrooms and a modern kitchen with electric appliances and a parquet floor, the website says.

In Jerusalem, a 78-square-meter (840-square-foot), three-room (two-bedroom) garden apartment on 3 Baruch Hirsch was put on the market for NIS 5,600 ($1,522) monthly. The partially furnished unit is on the ground floor, has large rooms and high ceilings, says the posting.

In Haifa, a 45-square-meter (484-square-foot), two-room apartment (one-bedroom) on 6 Herzliya Street was put on the market for NIS 1,750 ($476) monthly. According to the website, the furnished ground floor unit, which is not air-conditioned, is suitable for a single person or a couple and is close to public transportation, a post office and banks.

https://www.timesofisrael.com/housing-snapshot-home-sales-and-rentals-across-israel-in-august-2024