Real estate market upheaval in the south: sharp drop in new apartment sales - 44% of deal cancellations concentrated in Netivot
The Chief Economist's review reveals a 25% decline in new apartment sales in the south compared to last year. Netivot and Ofakim, which led in demand, are experiencing drops of 30% and 52% respectively. 44% of deal cancellations in the south were concentrated in Netivot, indicating unstable demand based on financing benefits.
The Chief Economist's review, published this morning (Monday), reveals a dramatic upheaval in the southern real estate market: a 25% decline in new apartment sales compared to last year. The cities of Netivot and Ofakim, which led the demand map over the past two years, are now recording sharp declines – 30% in Netivot and 52% in Ofakim. Be'er Sheva recorded the steepest drop, 74% over two years. Eyal Belcher-Cohen, CEO of Yesodot Group, explains that the data indicate a new direction precisely in the cities that led contractor sales. A notable figure: 44% of deal cancellations in the south signed in 2023-2024 were concentrated in Netivot, a share higher than its weight in sales. According to him, this indicates less stable demand than it appeared, likely based on financing benefits and deferred payments. Since the beginning of the year, 539 new apartments were sold in Netivot and only 205 in Ofakim. The assessment is that many buyers realized they cannot afford mortgage payments, after enjoying contractor loans with an initial payment of only 10%.