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Standstill to lead to price reductions?
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Demand for new flats down 6% in 2011

Central Bureau of Statistics report shows number of apartments sold or built last year totaled 37,744 – compared to 40,190 in 2010. Tel Aviv, Netanya see rise in demand

The number of new apartments sold or built in 2011 fell 6% compared to 2010, according to a report released by the Central Bureau of Statistics on Tuesday, summarizing the demand for new flats in a year characterized by a major social protest against the standard of living in Israel.

 

Some view this figure, and similar data released in recent months, as proof that the social protest and subsequent moves taken by the government have sent the housing market into a standstill, which will soon be expressed in price reductions.

 

Nonetheless, the number of apartments sold or built in 2011 – 37,744 – is still higher than the number recorded in 2009 – 37,273. The drop stems from the fact that 2010 was a record year in terms of Israeli demand for housing, with 40,190 apartments.

 

The drop in demand is not homogenous across the country. Jerusalem, Petah Tikva, Ashkelon, Beersheba, Kfar Saba, Ashdod and Holon recorded a drop in the demand for apartments. Petah Tikva saw 2,497 flats sold or built in 2010 compared to only 1,564 in 2011.

 

The cities of Tel Aviv, Rishon Lezion, Netanya, Yavne, Rehovot, Hod Hasharon and Ganei Tikva recorded an increase in demand for apartments in the past year. In Yavne, demand leaped by more than 200%, from 363 apartments sold or built in 2010 to 1,180 in 2011.

 

Jerusalem down, Tel Aviv up

An interesting trend is the apparent drop in Jerusalem's popularity compared to Tel Aviv's rise as Israel's real estate capital. In 2009, Jerusalem had more new apartments than any other city in Israel (2,092), while Tel Aviv ranked fourth after Netanya and Petah Tikva.

 

Two years later, the demand for new apartments in Tel Aviv soared by 53.5% and the Israeli metropolis became the most popular area to purchase an apartment in, with 2,230 new flats. In Jerusalem, on the other hand, demand fell 11.5% with only 1,851 new apartments sold or built in the city in 2011.

 

Israel's capital is still more popular than large cities like Ashdod, Ashkelon, Petah Tikva and Netanya, but demand in the Jerusalem district is significantly lower than the demand in central Israel – 35% of new apartments were bought or built in central Israel compared to only 7% in the Jerusalem area.

 

 


פרסום ראשון: 02.01.12, 15:08
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