The corona year is over, and real estate continues to rise. How will the year last? Great God
Real estate companies are setting records that have not been seen for years
Photography:
envato elements
Produced by the Department of Special Supplements
Explain to me what is going on here.
Corona's first year (and last, we hope) is over, and real estate continues to soar.
Even in the income-producing real estate (offices and commercial) that we expected to crash, the Bank of Israel now comes up with absolute data and states that there has been a recovery after a 40% collapse, and in any case there will be no risk to the economy.
The Ministry of Finance reported a 15% increase in apartment sales in November.
Compared to October, the month of closure and holidays, this is a jump of 45%.
Demand is growing, and the fear is that supply will not keep pace, especially as the corona plague further slows down processes.
In such a case the result, according to market laws, will be a rise in prices.
"The huge shortage of apartments has intensified in the past year, given the impact of the corona, and the government has no plan to increase supply," warn the Builders Association of Builders Association.
"Along with failures such as lengthening planning and construction procedures and thwarting urban renewal projects, the Corona has also added a shortage of workers. Demand will meet shortages and prevent stability."
Take the real estate companies.
They show records that have not been seen for years.
Every time the closure dissipated there was a tremendous outburst.
Take two luxury projects, one of areas in the Elite complex in Ramat Gan and the other of Africa Israel in Ibn Gvirol.
In two months or less, hundreds of apartments were sold.
The investor market recovered after Finance Minister Israel Katz reduced the purchase tax.
Data from the chief economist at the Ministry of Finance show a boom in the field.
Real estate investors with at least one apartment purchased 2,100 apartments in November - the highest level since April 2016.
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Take for example the third quarter of 2020, in which 25.8 thousand apartments were purchased in the free market, an increase of 9% compared to the corresponding quarter last year and the highest level since the first quarter of 2017. I repeat: the highest level in the last 3 years.
Da!
Corona?
It should be noted fairly that not everything is black and white.
The increase in transactions skipped the heart of the demand areas - Tel Aviv and the center, when in both the number of transactions continued to decrease compared to the corresponding quarter last year.
In the Tel Aviv area, the number of transactions amounted to less than 2,000 apartments, in the lower range of the distribution of transactions in this area in historical comparison.
Yes, what goes up also goes down, and vice versa.
But also consider the issue of mortgages.
A record of NIS 78 billion a year.
Note that the summary of the last 5 years shows that 2020 was a record year for taking out mortgages, more than 2019, when mortgages worth NIS 67.7 billion were taken out.
Corona?
How will the year last?
God is great.
But from the vaccination campaign and its results right now let me look at the year in pink, as we chose our hair color.
have a fun read.
Produced by the Department of Special Supplements