The slowdown in the residential real estate market in Israel continues, with a significant drop in apartment sales in recent months. REITs, focused on purchasing apartments, have taken advantage of the situation and acquired 422 apartments for a total of 1.1 billion shekels since the beginning of the year. The projects of developers, who are stuck with an inventory of apartments, offer discounts and incentives to buyers, but the main buyers are funds financed by banks and institutions. The current situation indicates a lack of confidence in the market, with many buyers preferring to rent rather than purchase an apartment due to fears of financial commitments in an unstable political situation. Additionally, there is concern about falling apartment prices, with forecasts indicating a continued decline in prices in the coming years, which could lead to a chain reaction in the market. The current situation presents many challenges for both developers and buyers and raises questions about the future stability of the market.
A stock of apartments accumulates, sufficient for years: REITs profit from the slowdown in the housing market
Based on themarker
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