The only ones who can: Want to live in a luxury apartment? You should work in these industries - voila! Real estate

The employment analysis of luxury apartment buyers in 2022 in Tel Aviv indicates a high dependence on the high-tech industry (Photo: ShutterStock)

A special review by the Chief Economist at the Ministry of Finance on the luxury apartment market reveals:

in 2022, a 31% decrease in the number of luxury apartment transactions was recorded, compared to 2021, and in the city of Tel Aviv, the number of these transactions dropped by 48%.

Does this have a direct connection to the crisis in the high-tech industry?

The employment analysis of luxury apartment buyers in 2022 in Tel Aviv indicates a high dependence on the high-tech industry, which concentrated about a third of these purchases in 2022.

Beyond the hi-techists - 27% of them were real estate professionals and owners of companies in the wholesale trade sector and 9% finance and public sector professionals, not including doctors. Also,

of the total number of transactions carried out in the housing market in 2022, the weight of luxury apartments was only 0.4%. Still, their weight in the total collection of purchase tax from apartments was about 11%. For comparison, 40% of the apartments sold in 2022 were not liable for tax at all (their price was in the initial tax bracket for a "single apartment", which is 0%).

And what about the foreigners?

made up only 5% of the luxury market segment in Tel Aviv; in Jerusalem they make up close to half of the buyers

Purchases by foreign residents Total purchases in the luxury market amounted to 9.6% of the total transactions in 2022, similar to this rate in 2021. However, there is a high variation in the weight of foreign residents in the luxury market , where on the one hand Jerusalem stands out, where nearly half (46%) of the buyers in the luxury market in 2022 were foreign residents (and still less than in 2021).

In Tel Aviv, on the other hand, foreign residents in 2022 made up only 5% of the luxury market segment in Tel Aviv.

A significant decrease in the weight of foreign residents was also recorded in Herzliya's luxury market, which dropped from a rate close to 9% in 2021, to a rate of approximately 2% in 2022.

In Kfar-Shamriahu, Savion and Ramat Hasharon, the proportion of foreign residents in the luxury market in 2022 is zero.

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