An Analysis of the Tel Aviv Property Market

Between March and May 2024, approximately 22,610 apartments were sold. This marks a 37.0% increase compared to the same period last year (March-May 2023) and a 2.7% increase compared to the previous three months (December 2023 – February 2024).

Courtesy of the Tel Avivi

47.4% of the total apartments sold were new apartments, amounting to around 10,710 units. Approximately one-fifth (18.3%) of these new apartments were sold with government subsidies. There was a 63.7% increase in the sale of new apartments compared to the same period last year and a slight increase of 1.7% compared to the previous three months.

Courtesy of the Tel Avivi

52.6% of the total apartments sold between March and May 2024 were second-hand apartments, totaling about 11,900 units. Sales of second-hand apartments saw a 19.4% increase compared to the same period last year and a moderate increase of 3.4% compared to the previous three months.

In May 2024, 7,470 apartments were sold, marking a 29.8% increase compared to the same month last year (May 2023). After adjusting for seasonality, there was a 5.3% increase compared to the previous month (April 2024), and the trend remains with a similar increase of 5.7% after seasonal adjustment.

Trend Analysis

Examining the trend data reveals that from September 2021 to July 2023, there was an average decline of 3.3% in the total number of apartments sold. In contrast, from August 2023 to the present, there has been an average increase of 3.6% in the total number of apartments sold.

Regarding the trend in the total number of new apartments sold, there was an average decline of 3.3% from September 2021 to June 2023. However, from July 2023 to now, there has been an increase of 4.3%.

For second-hand apartments, there was a 3.4% decline from September 2021 to August 2023. From September 2023 to May 2024, there has been an average monthly increase of 3.5%.

Geographical Characteristics

The Central District leads with 25.8% of the total apartments sold between March and May 2024. In this district, nearly a third of the new apartments (27.5%) and about a quarter of the second-hand apartments (24.3%) were sold. Following the Central District is the Southern District, with 20.4% of the total apartments sold: 21.0% of new apartments and 19.8% of second-hand apartments.

Tel Aviv-Jaffa, Jerusalem, Petah Tikva, and Ashkelon lead in the number of new apartments sold in the three months March-May 2024 with more than 500 apartments. In second-hand apartments sold during the same period, Jerusalem, Haifa, and Be’er Sheva lead with more than 700 apartments.

New Apartments Remaining for Sale

At the end of May 2024, the inventory of new apartments remaining for sale stood at approximately 67,470 apartments, and the number of months of supply (the number of months it will take until all the remaining apartments are sold) was 17.5 months (Table 2). 31.7% of the apartments remaining for sale are located in the Tel Aviv district (21,380 apartments) and 24.1% in the Central district (16,270 apartments).

It will be interesting to see what the latest numbers for the summer show us when they are released in a few weeks.