Updated data published last Sunday by the Central Bureau of Statistics reveals a complex picture of the Israeli real estate market: Despite the impressive increase in demand and apartment sales since the beginning of 2024, which continued at full strength from May to July 2024, approximately 70,000 new apartments remain unsold by contractors, most of them in the Tel Aviv and central regions.
According to CBS, 24,530 apartments were sold between May and July 2024, indicating a 31.7% increase compared to the same period last year, and a more moderate but still impressive 5.9% increase compared to the previous three months, February to April 2024. Of all the apartments sold, 45.3% were new apartments, totaling 11,100 units. This represents a 44.2% increase compared to May to July 2023, although the increase compared to the previous months was much smaller, standing at just 0.6%.
The demand for second-hand apartments also surged during May to July, with 13,430 apartments sold, accounting for 54.7% of total sales. This segment saw a 22.8% increase compared to the same period last year and a significant 10.7% rise compared to the previous months.
Alongside the rise in demand and sales, there remains a substantial inventory of unsold new apartments. As of the end of July 2024, the inventory of unsold new apartments stood at approximately 69,430 units, with the supply duration—the period expected for all these apartments to be sold—standing at 17.4 months.
Interestingly, despite an 18.9% increase in inventory compared to July 2023, the supply duration actually decreased by 6.6 months, indicating an acceleration in sales pace.
Of the unsold apartments, 31.8% are located in the Tel Aviv district (22,060 apartments), and 24.8% are in the central district (17,200 apartments). In cities with more than 100,000 residents, Tel Aviv-Yafo leads with approximately 8,920 unsold apartments, followed by Jerusalem with around 6,480 unsold apartments.
Most of the apartments sold: The Southern District takes the surprising second place.
A geographical analysis of apartment sales shows that the central district continues to lead the real estate market, with 23% of total apartment sales between May and July 2024. Of these, 22.5% of new apartments and 23.4% of second-hand apartments were sold in this district. The southern district follows with 21% of total sales, including 22.7% of new apartments and 19.7% of second-hand apartments.
Among the leading cities for new apartment sales, Tel Aviv-Yafo and Jerusalem posted impressive figures, each selling over 500 new apartments. Tel Aviv recorded a 25% increase compared to February to April 2024, and Jerusalem showed a 20.7% rise.
On the other hand, Netanya showed an 11.6% decrease in new apartment sales. In Ofakim, a dramatic 54.1% increase was recorded, indicating growing demand in the periphery as well. Hadera, Sderot, and Dimona also posted impressive increases, with growth ranging from 36.9% to 142.4%.