The Israeli real estate market is showing encouraging signs of recovery, with a 31.3% increase in housing sales in the third quarter of 2024, according to data from the Central Bureau of Statistics (CBS). This growth is particularly notable following a year marked by economic slowdowns.

Sales Up, But Still Below Average Levels

With 24,350 homes sold between July and September 2024, the market seems to be regaining momentum. However, despite a remarkable 46% increase compared to September 2023, the monthly average sales remain 15% below the standard levels of previous years.

New and Second-Hand Homes: A Diverse Market

Of the transactions recorded, 10,760 involved new constructions, while 13,590 were second-hand homes. A significant portion of new home sales, 21%, occurred under government-subsidized programs such as the “Price for Resident” initiative.

Geographical Analysis: Where Are the Transactions?

Sales activity was particularly strong in the Central District, accounting for 5,640 transactions, closely followed by the Southern District with 5,390 sales. Jerusalem and Tel Aviv remain key hubs, with 1,834 and 1,226 transactions respectively during this period.

Increasing Supply

By the end of Q3 2024, approximately 70,000 new homes were available for sale, representing a 15% increase compared to 2023. Tel Aviv hosts a significant share of this inventory, with notable proportions also in Jerusalem and Netanya.

Opportunities Amid Challenges

The current market offers interesting opportunities for buyers and investors, thanks to a relatively abundant supply. However, challenges remain, including construction delays due to labor shortages and an uneven geographical distribution of housing availability.

Conclusion

Despite these challenges, the indicators of the Israeli real estate market suggest positive prospects. Savvy buyers and investors can capitalize on current opportunities while remaining vigilant in navigating a constantly evolving market.