Investors continue to spearhead declines in real estate deals
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A 6% decline was recorded in demand for new apartments in the Israeli housing market in May-July as compared with February-April this year, according to figures released by the Central Bureau of Statistics.
On July 2011, a 14% climb was recorded in the number of new flats for sale as compared with July last year.
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Flat demand includes new flats that were sold as well as self-built flats which were not put on the market.
The CBS figures were published Sunday at the same time the real estate market figures were published by the Ministry of Finance which reported ongoing declines in flat sales in the second quarter of 2011.
According to CBS figures, as compared with February-April 2010, new flat demand was down 4%.In July 2011, demand for new flats was for some 3,120 units of which 1,540 were sold to the public and 1,580 were not put on the market.
According to the Ministry of Finance State Revenues Administration's report for the second quarter of 2011, activity on Israel's real estate market plummeted in 2011.
The most noticeable figure on the report was the figure reflecting the scope of the stagnation which reflected a 16% decline in flat sales as compared with the same period last year and well as compared with the previous quarter.
This decline compounds the 11% decline in the first quarter of 2011 (against the fourth quarter of 2010).
Investors continued to spearhead the declines in real estate deals with a 24% drop in the number of deals as compared with the previous quarter and 34% less than the same quarter last year.
Investors purchased an overall 5,000 flats in the second quarter – a record low since the fourth quarter of 2008 when Lehman Brothers crashed.
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