Real Estate Market

A review of Jerusalem real estate transactions reveals high returns for 2021 property buyers compared to minimal gains after 2023. Despite predictions of a double-digit drop, tax authority data shows no nominal capital losses.

The Israel Land Authority continues to show weak data regarding land marketing. A permanent director has not yet been appointed, and out of dozens of tenders, only a few are intended for high-density construction.

Despite the ongoing slowdown in the housing market, the average mortgage continues to climb, reaching 1.117 million shekels in July — the second-highest figure ever. About 43% of new mortgages were taken for properties worth 3 million shekels or more. Contractor loans also remained at a high level, with a volume of 1.6 billion shekels, but their share of total mortgages actually decreased.

Mortgage volume reached 11.5 billion shekels in July, an 8% increase year-on-year. Experts warn that these figures reflect past transactions and create a misleading sense of market health.

A CBS survey indicates a sharp decline in the share of households planning to purchase an apartment – from 8% to 3.6%. According to the director of the housing indices department at the bureau, the data reflects a slowdown in the market.

A resurgence in the housing credit market: Bank of Israel data reveals the distribution of financing rates and the risk levels taken on by borrowers. Additionally, the data highlights how many Israelis are allocating up to 40% of their monthly income to mortgage payments.