Safe room apartments: demand & second-hand transaction impact

The report from the Treasury's chief economist, published on March 12, reveals a total of 4,337 transactions in second-hand apartments in January, marking a 5% decrease from January 2023. Conversely, the market for new apartments saw a significant 46% surge compared to the previous year. 

These figures suggest that substantial sales promotions by contractors, initiated in 2023 and continuing into January, focusing on favorable financing terms, contributed to the remarkable recovery in this market segment. Additionally, buyers' preference for safe room-equipped apartments likely fueled both the increase in new apartment purchases and the ongoing reshuffling in second-hand apartment sales.

Geographically, half of the top ten real estate tax areas witnessed an increase in transactions compared to January of the previous year, albeit at relatively moderate rates – except for the Rehovot area, which saw a notable 10% increase following sharp declines in previous months. Conversely, the Tel Aviv region experienced a significant 29% decrease, and the Beer Sheva area saw a 15% decline. Notably, in contractor sales in the BS-free market area, there was a notable 51% increase compared to January last year.

And what about the investors?

Analysis of new apartments in proximity to Shania revealed that approximately half of investors' purchases were of new apartments. The highest proportion of such new apartments purchases was observed in the Jerusalem area, accounting for around 60% of total investor apartment acquisitions.

Conversely, in the Haifa region, only about 30% of investor purchases were new apartments. The Beer Sheva area, previously characterized by a relatively low rate of new apartment purchases, saw a significant increase in January, with new apartments constituting around half of total purchases. This surge is likely attributable to the growing preference for safe room-equipped apartments.

Did this trend in the second-hand apartment market affect transactions in your city?

Let's review the second-hand apartment transactions that occurred nationwide last week:

Beer Sheva

A 4-room garden apartment in the Ramot neighborhood, on Gideon Hauzner Street, spanning 151 square meters with a 75 square meter garden, sold for NIS 1.7 million (Re/Max Plus).

A 4-room apartment on Sderot Yitzhak Reger Street in neighborhood D., covering 65 square meters on the 3rd floor out of 3, sold for NIS 860,000 (Re/Max Plus).

A 5-room apartment on Michael Hanegbi Street, Ramot neighborhood, measuring 133 square meters with a 12 square meter balcony, sold for NIS 1.54 million (Re/Max Plus).

A 4-room apartment on Kadesh Street in neighborhood D., covering 72 square meters on the 3rd floor out of 3, sold for NIS 835,000 (Re/Max Plus).

A 4-room apartment on Derech Ha-Ha'mavehim in neighborhood B, spanning 95 square meters on the 2nd floor out of 3, sold for NIS 870,000 (Re/Max Plus).

Carmit

A 5-room villa on Hofit Street in the Carmit settlement, with 140 square meters built and a 200 square meter garden on a 585 square meter plot, sold for NIS 2.585 million (Re/Max Plus).

Rehovot

A 3-room apartment on Yavne Road, covering 75 square meters on the 3rd floor out of 4, with parking, sold for NIS 1.825 million (Anglo-Saxon).

Haifa

A 4-room apartment on HaTzofim Street in the center of the Carmel neighborhood, spanning 120 square meters on the 2nd floor of 2, with a sea view but without parking and an elevator, sold for NIS 2.7 million (Anglo-Saxon).

A 3.5-room apartment on Ovadia Street in the Ramat Hashabi neighborhood, covering 75 square meters on the 2nd floor out of 2, without an elevator and parking, sold for NIS 1.05 million (Anglo-Saxon).

Migdal HaEmek

A 3-room apartment on Shomron Street, measuring 61 square meters on the 3rd floor out of 3, sold for NIS 730,000 (Re/Max Hamek).

Harish

A 5-room apartment on Kalanit Street, with 112 square meters plus a 16 square meter balcony on the 3rd floor out of 6, sold for NIS 1.545 million (Re/Max the new city).

A 5-room apartment on Shoham Street, measuring 105 square meters plus a 12 square meter balcony on the 3rd floor out of 5, with an elevator and parking, sold for NIS 1.45 million (Re/Max Ha'ida Ha'ira).

Holon

A 4-room apartment on Geulim Street, spanning 90 square meters plus a 6 square meter balcony on the 4th floor out of 7 with an elevator, sold for NIS 2.04 million (Re/Max Center).

A 4-room apartment on Avivim Street, covering 104 square meters on the 7th floor out of 9 with an elevator, sold for NIS 1.85 million (Re/Max Center).

A 5-room apartment on Uri Almog Street, with 136 square meters plus a 17 square meter sun terrace on the 1st floor out of 12 with an elevator and parking, sold for NIS 3.69 million (Re/Max Center).

Bat Yam

A 3.5-room apartment on Bar Yehuda Street, spanning 70 square meters on the 2nd floor out of 4, sold for NIS 1.577 million(Re/Max Center).

A 3-room apartment on Ha'Carmel Street, covering 70 square meters on the 2nd floor out of 4, sold for NIS 1.697 million (Re/Max Center).