“Home prices always rise.” That’s the conventional wisdom of the average Israeli and for the past eight years it’s been a fact. But even in a market like this, some properties have generated better returns than others. Some neighborhoods around Israel have seen prices more than tripled over the past eight years — an average rise of 25% a year — while others have seen only low double-digit gains. TheMarker has looked at these neighborhoods in three of Israel’s largest cities, pinpointing where prices have risen the least (in percentage terms) since 2007 and where they have climbed the most. Overall, 10 cities have been surveyed by TheMarker and the Madlan real estate website.
Apartments under construction hit the highest number since 1997, the Central Bureau of Statistics reports.
More three-room apartments were started in January-June 2015 than in all of 2014.
After years of decline in building starts for three-room apartments, Ministry of Construction and Housing figures for building starts in the first quarter of 2015 show an increase in the number of small apartments started. In addition, adjusted Central Bureau of Statistics figures for the first half of 2015 also indicate a surge in construction of these apartments.
According to the Ministry of Construction and Housing figures, construction began on 680 three-room apartments in the first quarter of the year, 5.5% of all the building starts in the quarter. Three-room apartments started totaled 1,764 in 2014, only 4% of all building starts that year, an average of only 441 per quarter, 239 (50%) fewer than the number in the first quarter of 2015. The Central Bureau of Statistics’ adjusted figures for thhe first half of 2015 show that construction of no fewer than 1,871 three-room apartments began in January-June., including 1,191 three-room apartments in the second quarter, 57% more than in the first quarter. The first half total is more than the 1,764 three-room apartments begun in all of 2014. The standout cities in beginning construction on three-room apartments were Tel Aviv-Jaffa, Jerusalem, Ramat Gan, and Beit Shemesh.
The housing market has cooled in Jerusalem and Tel Aviv, but purchases surged in northern Israel, the Finance Ministry reports.
The real estate market took a downturn in the Jerusalem and Tel Aviv areas, while purchases of apartments surged in northern Israel and the market in luxury apartments for investors took a downturn. These trends were featured in the August real estate survey published today by Minister of Finance chief economist Yoel Naveh.
Purchases of first apartments dipped by a moderate 4% in August. In a breakdown by areas, Jerusalem stood out with a 14% drop in these purchases, following a similar decrease in July. At the same time, the prices of apartments purchased by young couples in this area slid by an average of 10%. Noteworthy is that fact that the period involved preceded the recent wave of terrorist attacks, many of which took place in the Jerusalem area. Naveh believes that the drop in prices resulted from a rise in the proportion of deals in this region involving housing in communities with relatively low prices. The fall in purchases by young couples in the Jerusalem area was partly offset by a steep rise in purchases in this market segment in the northern outlying districts.