Purchase Tax Effect: Record of Real Estate Transactions in November

Who said that raising the purchase tax will not affect the real estate market? Even before the government can approve the update, investors raided the market and hit the drug early. The result: November shows a record sales of apartments in Israel

Between Ashkenazi

18/01/2022

Tuesday, 18 January 2022, 13:11 Updated: 13:22

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A record number of transactions in the real estate market, according to a real estate survey published by the Ministry of Finance: In November 2021, 18.2 thousand apartments were purchased, compared to November 2020 it is an increase of 62% and compared to the previous month (October 2021) it is an increase of 27%.

The main reason for the jump in the number of transactions is the desire of investors in the real estate market to bring forward the entry into force of the purchase tax increase, which was updated on November 28. After

deducting transactions under the "price per occupant" number of free market transactions, it increased by 17,000. 2020 and an increase of 26% compared to the previous month.

Investors' purchases in November reached an exceptional level of 6,700 apartments, an increase of about 200% compared to November 2020 and an increase of 41% compared to the high level recorded in October. %, Which is an increase of 17 percentage points compared to November 2020.

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Who will build me a house in Tel Aviv?

The most sought-after city in Israel remains (Photo: Reuven Castro)

Tel Aviv is still at the top

The city of Tel Aviv continues to lead investors' acquisitions, followed by Jerusalem, Haifa, BS and Bat Yam. Dimona stands out in joining the list of the top twenty cities in investor acquisitions, with the highest growth rate compared to November 2020.

Investor sales in November stood at 3,900 apartments, the highest level in at least the last ten years and an 88% increase compared to November 2020. Investors are explained at least in part by taking advantage of the opportunity of high demand from investors who want to enter the market before raising the purchase tax.

Contractor sales in November totaled 6,700, the highest monthly level in new home sales in at least the past twenty years. Compared to November 2020, this is a sharp increase of 65%. This also recorded a record level in the potential cash flow from these sales, which amounted to NIS 14.5 billion in November.

Purchases of "first apartment" amounted to 6,100 apartments, here too it is the highest level of these purchases at least since the beginning of the previous decade.

After deducting the purchases under the "price per occupant", the purchases of young couples in the free market amounted to 4,900 apartments, with the increase in these purchases being particularly noticeable in the peripheral areas.

Purchases of housing improvers totaled 5,400 apartments, which also represent the highest level in these purchases at least since the beginning of the previous decade and a 34% increase compared to the previous month.

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• Real Estate

• Apartments

• purchase tax

• Ministry of Finance