New home sales in July weakest since 2018

Published date14 September 2023
AuthorArik Mirovsky
Publication titleGlobes (Rishon LeZion, Israel)
The problem facing real estate developers is that they made their calculations for the current market based on 2021-2022 data, and therefore began the construction of many projects. 2023, on the other hand, returns them to the sales data of 2018-2019, which were considered to be lean years for the industry. Consequently, the stock of apartments that they own is increasing every month. Of the 60,000 unsold new homes, over 18,000 apartments are in the Tel Aviv District, and 14,000 apartments in the Central District

Buying less in Tel Aviv

These figures support the data from the Ministry of Finance chief economist, which show significantly less housing deals being concluded, especially in Tel Aviv, alongside accelerated building there, especially in urban renewal projects. It can be assumed that one of the main reasons for this is the inability of many to afford the high apartment prices, in today's high interest rate environment.

This is also reflected in the table of the leading cities for the sale of new apartments. Tel Aviv, was only ranked...

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