Of the total sales, 45.3% were new apartments, amounting to around 11,100 units, marking a remarkable 44.2% increase from last year. Approximately one-fifth of these new apartments were sold under government subsidy programs, reflecting continued government involvement in reducing housing prices.
At the same time, the second-hand apartment market also showed significant growth, with around 13,430 units sold, representing 54.7% of total transactions—an increase of 22.8% compared to the same period last year.
Geographically, the central district leads with 23% of total sales, followed by the southern district with 21% of transactions. In major cities, Tel Aviv-Jaffa, Jerusalem, and Ofakim are leading in new apartment sales, while in the second-hand market, Jerusalem, Haifa, and Be’er Sheva top the list.
Despite the rise in sales, the inventory of new apartments available for sale remains high. As of the end of July 2024, the inventory stood at approximately 69,430 units, with an estimated 17.4 months of supply. This indicates that despite the increased demand, there is still a significant supply in the market. Notably, 31.8% of the unsold apartments are located in the Tel Aviv district, highlighting the high concentration of real estate in the central region.
Tel Aviv-Jaffa leads with about 8,920 apartments still on the market, followed by Jerusalem with approximately 6,480 units. These figures raise questions about the alignment of supply and demand in these areas and suggest continued pressure on housing prices in major cities.
Long-term trends show a consistent rise in sales since August 2023, with an average monthly increase of 3.2% in total apartment sales. Specifically, the new apartment market has shown an average monthly growth of 3.9% since July 2023, while the second-hand market has seen a 3.3% monthly increase since September 2023.
In conclusion, the data points to a significant recovery in Israel’s real estate market, with notable demand growth for both new and second-hand apartments. However, the large inventory of unsold apartments, particularly in central areas like Tel Aviv, indicates ongoing challenges in balancing supply and demand in certain regions. The Israeli real estate market remains dynamic and complex, with varying trends across different parts of the country.
