Big investors 'abandon' Israeli real estate sector: Globes

By Al Mayadeen English
Source: Israeli media
13 Oct 2024 23:03
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Uncertainty and the effects of the war are pushing away big investors from purchasing apartments in Israeli occupied territories.

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Workers remove broken glass from a building damaged during Iran's retaliatory missile attack in Tel Aviv, occupied Palestine, October 2, 2024. (AP)

Investors who purchase substantial numbers of apartments in the Israeli-occupied territories are "abandoning" the Israeli real estate market, according to a survey conducted by the Israeli Ministry of Finance's chief economist.

Previously, such investors made up the majority of those purchasing settlement units and apartments, however, in August they made up only 33% of all investors who made such transactions.

Reviews conducted by the ministry’s chief economist and the Israeli Central Bureau of Statistics found that real estate deals fell by 16% this month. Moreover, the chief economist said that 1,200 apartments were bought in the past year every month, a figure that amounts to half of the monthly number of apartments bought on average in 2021, underlining the severity of the crisis.

In February this year “heavy investors” had a 72% share of the market, however, the number dropped to 35% in August.

Israeli news website Globes explained that the drop could be attributed to “uncertainty in Israel’s economy.”

Another explanation could be that investors do not believe that apartment prices will rise due to the ongoing wars launched by the Israeli regime and their subsequent effects on the Israeli economy, according to the report.

Israeli aggression prompts costly responses

The Iranian missile attack on October 1 caused significant property damage, with estimates ranging from 150 million shekels ($39 million) to 200 million shekel ($52 million), according to the property tax authority, as reported by Ynet.

This incident marks the most extensive damage from a single missile strike on "Israel" since the war began.

The property tax report highlighted that the damage from the missile landing near the Sea & Sun complex on the northern Tel Aviv beach alone is estimated at around 50 million shekels ($13 million).

Several establishments, including restaurants and high-end shops, suffered severe damage, particularly the Turquoise restaurant, which was nearly completely destroyed.

Additionally, about 150 apartments in nearby luxury residences were also affected by the missiles' impact.

The large extent of damage at the site was surveyed last week by the Director of the Tax Authority Shay Ahronovitz during a special tour of the site. Dozens of workers have been busy in recent days repairing the damage.

Much damage was caused in about ten sites within several military bases, according to the report. One of the centers of the falls was in Hod HaSharon, where about 100 apartments were damaged.

In one of the buildings alone, the damages are estimated at more than 10 million shekels ($2.65 million).

Meanwhile, the direct damage to property as a result of missile and drone fire from Lebanon and Iran is estimated so far at a billion shekels ($265 million), the report concluded.