Real estate sales at a record low in 20 years

The Israeli real estate market in 2023 was at an all-time low over the past two decades. Economists point to the deep recession, the impact of military conflicts and high mortgage interest rates as the main factors in reducing the number of transactions for the purchase of apartments.

In November 2023, there was some improvement in the situation, with an 85% increase in the number of transactions compared to the previous month. However, this figure still remains well below the monthly average for previous years. The total number of apartments sold in 2023 was about 70,000, which is the lowest in the last 20 years.

Developers and realtors have noted an increase in the interest of foreign investors in purchasing housing in Israel due to the growth of anti-Semitism in various countries of the world. Despite this, actual transactions still remain at a relatively low level – in November, foreigners purchased only 77 apartments, which is 48% less than in the same period of 2022.

Experts believe that the situation is connected not only with the impact of the war and the economic crisis, but also with the national trauma experienced by the country. The interest of foreign buyers may be the impetus for the market recovery, but this process is likely to take time.

It should be noted that the Israeli real estate market continues to attract attention, and even with record low sales, the prospects for recovery can become a reality with the support of stabilizing the economic situation and improving the overall atmosphere in the region.