New homes sales in Israel fall

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17,400 new homes were sold in Israel in the first four months of 2022, the Central Bureau of Statistics reports, 15% down on the final four months of 2021.

17,400 new homes were sold in Israel in the first four months of 2022, the Central Bureau of Statistics reports, 15% down on the final four months of 2021, which was an all-time record high for the sale of new homes. New homes sales were higher in the final four months of 2021, as investors rushed to buy homes before purchase tax was raised for investors from November 1. Since November, the number of new homes bought has fallen by an average of 2.1% per month.

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Nevertheless, the figure for the first four months of 2022, is 10% higher than the number of new homes sold in the first four months of 2021.

Leading cities

Tel Aviv is not only the most expensive city for real estate in Israel but also the city in which most new homes are sold. In the three months between February and April 2022, 935 new homes were sold in Tel Aviv (compared with 1,091 new homes between November 2021 and January 2022). 888 new homes were sold in Rishon Lezion (476), 776 new homes in Beit Shemesh (451), 724 new homes in Ramat Gan (587), and 611 new homes in Beersheva (334).

Two cities stood out because of a large fall in the purchase of new homes in the three months between February and April 2022, compared with the previous three months: Ashkelon, 499 new homes sold (870) and Jerusalem 446 new homes (722).

Published by Globes, Israel business news – en.globes.co.il – on June 14, 2022.