The first months of 2023 have provided interesting insights into the Israeli real estate market. Despite some stability, a few notable trends have emerged. In this article, we will delve into the numbers to learn about apartment sales from January to March 2023 and examine key factors influencing the real estate market.
Israeli Real Estate Market: March-May 2023
Market Stability
The real estate market in Israel experienced a certain level of stability during the first three months of 2023, with a similar number of new apartment sales compared to the end of the previous year. Between January and March 2023, a total of 7,960 new apartments were sold, a figure close to the one recorded in the preceding three months, October and December 2022, during which 7,920 apartments were sold. This stability indicates continuity in the real estate market, with sustained demand despite economic challenges.
It is worth noting that there was a significant increase in sales in March 2023 compared to February 2023, with 2,790 new apartments sold, representing a 9.4% increase. This increase suggests a renewed confidence of buyers in the real estate market, with growing interest in property purchases.
Approximately 23.7% of the new apartments sold between January and March 2023 were subsidized by the government. This share represents a significant increase of 35.5% compared to the preceding three months, highlighting government efforts to facilitate affordability for low-income buyers.
Geographical Distribution
Around 29.1% of the new apartments sold were located in the southern district, while the central district accounted for approximately 19.3% of the sales. These figures demonstrate sustained demand in these specific regions, with attractive real estate opportunities.
New Apartments Sold by District, January-March 2023 compared to October-December 2022
Nearly one-third of all new apartments sold between January and March 2023 were located in the cities Jerusalem, Netivot, Ashkelon, Petah Tikva, and Ramat Gan. This indicates that these cities are particularly attractive to buyers looking for new properties.
At the end of March 2023, approximately 54,500 apartments were still available on the market. This equates to around 21 months of monthly inventory, indicating abundant supply for potential buyers.
Over half of the remaining apartments for sale were located in Tel Aviv (29.6%) and the Central (23.8%) district. The number of available properties of all types offer a variety of options to potential buyers.
Remaining Apartments for Sale by District - March 2023
New Apartments Sold, Original Data and Trends
* The slump in early 2020 corresponds to the global COVID-19 pandemic and the lockdown period in Israel.
Featured Cities
Certain cities stood out with a high number of apartment sales between January and March 2023. Jerusalem recorded 865 sales, closely followed by Netivot with 818 sales. Ashkelon and Petah Tikva also garnered significant interest, with 425 and 404 apartments sold, respectively. Significant increases in sales were observed in Netivot, Kiryat Bialik, Beer Sheva, and Petah Tikva compared to the previous three months, indicating the growing appeal of these cities.
Cities with Over 150 Apartments Sold, January-March 2023 compared to October-December 2022
The apartment sales between January-March 2023 provide an interesting insight into the real estate market in Israel. Despite overall stability, certain factors influenced the trends, such as the increase in sales in March, the growing share of subsidized apartments, and the concentration of sales in specific cities. There remains an abundant supply of available apartments, offering potential buyers plenty of options. It will be interesting to monitor the evolution of the real estate market as new data becomes available and economic and social factors continue to shape the real estate field in Israel.
We encourage you to watch out for Immo Israel's monthly reports in order to stay informed about developments in the market. They will provide you with up-to-date data and help you seize opportunities in the Israeli real estate market and be sure to make informed decisions regarding your real estate investments.
Disclaimer: The data and statistics used in this article are based on information provided by the Israeli Central Bureau of Statistics (CBS). While these data are deemed reliable, there may be variations or errors in the figures. Readers are encouraged to directly consult the CBS website for the most recent and accurate data. The author of this article and Immo Israel cannot be held responsible for the use or interpretation of the information presented in this article.