Precisely the luxury market was hardly affected by the corona crisis.
Huge real estate transactions have been recorded in many cities
Luxury deals in various cities
Photo:
Danos fan (data analysis)
Produced by the Department of Special Supplements
2020 has been a successful year in the luxury market, even when compared to the beginning of the current year.
In January 2021, 59 luxury transactions were registered, the highest of them in the amount of 15,500,000 in Tel Aviv.
February 2021 - 57 luxury deals, the highest of 29,785,100 also in Tel Aviv.
Interesting statistic: January 2021 saw a decrease of 42% (59 transactions compared to 102 in January 2020).
February 2021 - a decrease of slightly more than 40% (57 transactions compared to 96 in February 2020).
The year 2020 was a difficult year from a medical and economic point of view, but a new study, conducted for real estate today, reveals that surprisingly, the luxury market was hardly affected by the closures and restrictions imposed during it.
2020 will be recorded in the real estate history books of the State of Israel as the year of the corona. There is much talk that the corona is not only a health crisis, but also an economic crisis. The study strengthens the hypothesis that the country's rich were less affected by the crisis.
The study was conducted by a real estate expert and former chairman of the Chamber of Appraisers, Ohad Danos.
In this framework, the amount of transactions in luxury properties during 2020 was examined, segmenting them into months and localities.
Luxury assets were defined as assets sold for NIS 5 million or more.
The study addresses both new and second-hand assets.
We will also examine the scope of transactions in 2018 and 2019.
Some?
In 2018, 931 luxury properties were sold, while in 2019, when the luxury market began to recover after several difficult years - 1,045 transactions.
In 2020, a total of 922 luxury properties were sold in 57 localities in Israel, and this is a number that should not be taken lightly at all.
It is worth taking into account that for about a quarter of the year, the Israeli public was in a blockade (87 days), and it is still a minimal decrease in transactions of only about 12% compared to 2019 and a decrease of only about 1% compared to 2018.
And
The closures appeared to operate in two opposite directions: on the one hand, the closures created a real physical restriction on the way to concluding transactions, particularly in luxury properties.
On the other hand, quite a few wealthy people decided to make moves that they had rejected for some time, when temptations to invest abroad were irrelevant.
The study indicates a high correlation between closing dates and the amount of monthly transactions.
The slump in the number of transactions is measured towards the end of each close.
The third closure continues deep into 2021, until 21.2.
The implication of the findings is that the public was interested in buying luxury properties, it simply could not move forward with the transactions due to the logistical difficulties.
where?
When looking at the segmentation of localities, it can be seen that out of the 57 localities in which luxury transactions were closed, only 9 are double-digit numbers of transactions.
At the top of the list and far above all is the prestigious real estate capital of Israel, which is Tel Aviv, with no less than 430 transactions, about 47% of all transactions. Tel Aviv enjoyed pride, as the city's wealthy residents improved their positions, purchased luxury real estate And generally took advantage of the narrow and short window of opportunity that opened in 2020.
In this context, we will mention one of the huge deals, a penthouse on Hayarkon Street, which was sold for NIS 108 million.
In second place far behind Jerusalem with 162 deals, which teaches us that despite the corona and the disease that raged in the city even more, there were still those who took advantage of opportunities to lay hands on prestigious and attractive properties.
In third place Herzliya.
Although it is only about 67 transactions, in January and July 2020, two transactions totaling NIS 456 million were made (more than NIS 200 million for each of them), and it is in fact the record for the most prestigious transactions in Israel in 2020.
Next on the list is Ramat Hasharon with 34 deals.
Netanya, a relatively cheap city on average, surprised with 30 deals.
Ramat Gan with 28 transactions, Raanana and Givatayim with 23 transactions each and seals the double-digit list Savyon with 16 transactions.
As can be seen, the Tel Aviv district controls the dome, but quite a few luxury deals have also been made in key localities in the Central District and Jerusalem.
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When?
A breakdown over the months of the year shows that the largest number of transactions took place in January 2020, when the Corona crisis was still in full swing, and in the summer months (June-August), which were without closures and usually more apartments were purchased.
And
In terms of the highest deals, here too Tel Aviv kept the premiere, with the highest deals being tied in it out of the 12 months of the year in nine months, with Herzliya (two months) and Moshav Bnei Zion starring in the other months.
"There is no doubt that the rich of Israel became richer during the Corona period," Danos concludes.
"The problem is that they are once again enjoying their power and money, while the weaker sections continue to suffer the most severe damage. It is important to understand that the real estate market in Israel has once again proven to be strong and stable, and there is great hope for further construction and increased supply."
Produced by the Department of Special Supplements