January 2024 has seen a significant surge in real estate transactions, with 7,887 apartments sold—a nearly 18% increase from January 2023 and a substantial third more than December 2023—making it the highest-performing month compared to the entirety of 2023, according to Central Bureau of Statistics (CBS) data released Thursday.
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The sale of new apartments stood out, marking an impressive 44% jump year-on-year, in stark contrast to second-hand apartment sales, which saw a modest increase of just over 1%.
The Finance Ministry reported a January rebound in real estate, driven by a spike in new apartment sales, attributed to significant contractor incentives amid unsold inventories and high interest rates.
From November 2023 to January 2024, about 17,870 apartments were sold, marking a 22% increase over the prior quarter, with nearly half being new and just over half second-hand, including over a fifth of new apartments being government-subsidized.
Despite this, the CBS recorded a slight 2.7% average decrease in total apartment sales since September 2021, with second-hand sales dropping by 3% versus a 2.5% decrease in new apartments.
New apartments in Ashkelon see a decline in sales
The Central District led in apartment sales, comprising 26.2% of all transactions from November 2023 to January 2024. In this region, nearly one-third of the new apartments and one-fourth of the resale apartments found buyers. The Southern District followed, representing just over 20% of the total apartment sales.
Jerusalem, Ashdod, Tel Aviv-Yafo, Petah Tikva and Rishon LeZion were the top cities for new apartment sales during this timeframe. While all surveyed cities reported an uptick in new apartment sales, Ashkelon experienced a significant drop, nearly halving compared to the previous quarter. This decline can be attributed to the city being significantly affected during the initial phases of the war.
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Hamas rockets on Ashkelon explain lower demand for apartments in the city
(Photo: Reuters)
In the resale apartment market, Haifa, Jerusalem, Be'er Sheva, Tel Aviv-Yafo and Petah Tikva emerged as the top cities, all witnessing an increase in sales.
The inventory of new apartments available for sale from developers continued to climb, reaching approximately 67,980 units by the end of January 2024. The supply months, or the estimated time required to sell the existing inventory, was just under 27 months.
Just over 30% of the unsold new apartments are located in the Tel Aviv District, with slightly more than 25% in the Central District. Among major cities with populations exceeding 100,000, Tel Aviv-Yafo has the highest number of unsold apartments, approximately 7,940 units, followed by Jerusalem with around 5,640 units remaining on the market.