Press "Enter" to skip to content

Israel sees sharp drop in home sales amid conflict with Hamas

The number of home deals in Israel fell sharply in October due to the ongoing conflict with Hamas, according to a review issued by the country’s Finance Ministry on Tuesday.

According to the ministry’s data, a total of 2,294 new and second-hand apartments were sold in Israel in October, reflecting a year-on-year decrease of 54.6 percent and a month-on-month decrease of 61 percent.

A total of 1,477 second-hand apartments were sold in October, registering a year-on-year decrease of 53.9 percent, according to the ministry.

The review explained that the decrease was mainly caused by old apartments’ lack of a safe room that was designed to protect residents from rocket attacks.

Sales of new homes in Israel decreased by 56.4 percent year-on-year in October, and by 65.5 percent compared to September 2023.

The review noted that the number of homes sold in October is one of the lowest on record in Israel since the early 2000s by the least. It added that even in April 2020, after the outbreak of the coronavirus pandemic in Israel, a slightly bigger number of home transactions was recorded.

Analysts said that the outbreak of the Israel-Hamas conflict on Oct. 7 had a severe impact on Israel’s real estate market, with the immediate closure of all construction sites for about three weeks due to security reasons and the absence of foreign and Palestinian workers.

They added that the suspension of construction, mass recruitment into the army reserves, closure of businesses, the evacuation of cities in risk areas, and general uncertainty during the war period contributed to the sharp drop in the number of transactions. ■

Famagusta Gazette