The real estate market in Israel is experiencing a significant decline in apartment sales, with a 31% drop in April compared to March, and a 19% decrease compared to April last year. Reasons include the Passover holiday, but also a 12% drop in purchases by investors and tech workers. The share of tech workers among apartment buyers has fallen from 25% to 11%, indicating uncertainty in the job market and the economic capacity of the public. Additionally, the burden of mortgages on households has increased, with many currently allocating 40% of their income to mortgage repayments, compared to 20-25% in the past. Repayment periods have extended to 30 years, complicating the situation for borrowers. As a result, apartment prices are expected to continue to decline, with estimates suggesting a return to 2015 prices. Many investors prefer to sell their properties and shift to stock market investments, while tech workers are facing layoffs and seeking economic solutions.
Investors and tech workers have vanished, and apartment sellers are in trouble
Based on themarker
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