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The market is stuck, and it's time to check: is your apartment in demand? - Walla! Real estate

2022-11-24T06:13:51.411Z


An economic examination reveals to us what is the average price that Israelis are willing to pay for an apartment, what is the most requested size and which cities are the most attractive. What about your apartment? Come in to check


The demand has shifted to investors, but what? (Photo: Reuven Castro)



The decline

in demand for apartments will continue and worsen in the next three months as well

- according to an economic analysis conducted by Dr. Rina Degani, a specialist in urban economics, one of the owners of the Geocartography Group.

first-time home buyers. It also appears that there is a 25% decrease in the number of customers who wish to purchase apartments entering the brokerage offices.



On the other hand, Dagani says that the demand in the last month has actually shifted to investors, who reached over 10% of all the apartments requested.

This, Karni estimates, because that investors expect a decrease in apartment prices

, and despite the high tax rate on the purchase, which stands at 8%, they are looking at options in anticipation of good opportunities in the market.

The most requested apartments: price, size and location

Requested apartment price

: Despite the fear of the interest rate increase, and consequently the monthly mortgage payment, the average price the public is willing to pay for an apartment is still about NIS 1.6 million, and in practice will pay more, similar to the average price for buying an apartment in the last year.



Desired apartment size:

the desired apartment among about 46% of the public is 3.5 to 4 rooms.

About a quarter are looking for 3 rooms and about a quarter are asking for larger apartments.



There is also a 30% increase in demand for 3.5-room apartments, which actually function as a substitute for 4-room apartments, but at a slightly lower price.



Only about 7% of the buyers are interested in small apartments up to 2.5 rooms, which indicates a national need for the construction of about 8,500 small apartments.

Haifa: one of the most sought-after cities in Israel today (Photo: ShutterStock)

The sought-after localities:

Haifa and Rishon Lezion are the cities where the level of demand is the highest in Israel today.

After them come Petah Tikva and Ramat Gan, in the market there are about 10-12 thousand buyers interested in each of these localities, for a new or second-hand apartment.

At a high level of demand, they are followed by: Ashkelon, Holon, Rehovot and Be'er Sheva with about 8,000 interested parties.



Haifa, which despite its size and location, was dormant for many years, is only starting to wake up in the last year.

In Rishon Lezion and Petah Tikva, the demand is increasing due to the relatively affordable apartment prices, and the flooding of the city with many apartments, including in projects with a price per inhabitant.



Demand in the two most sought-after cities in Israel in the last 20 years, Tel Aviv and Jerusalem, has dropped significantly.



Today, the number of those interested, or actually those who can afford to purchase an apartment in one of these cities, is only around 7,000 interested in each of the cities.

The demand for them continues to decrease, and it decreases by about 25% compared to the period before the holidays.



A city in demand in recent years like Ashdod is also decreasing in demand, which is moving to Ashkelon.

Or Yehuda, Hod Hasharon and Givatayim still stand out in their demand rates, and the demand for Ramla, Lod and Kiryat Gat is decreasing significantly.

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Source: walla

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