Demand was down down 21% in March compared with March 2013.
Demand for new homes was sharply lower in March 2014 than in the preceding month and in the corresponding month of 2013, according to Central Bureau of Statistics data on demand for new homes and sales by contractors. Demand for new homes was down 17% in March, compared with February, and down 21% compared with March 2013.
One of the reasons for the plunge in demand for new homes in March was the zero VAT plan announced by Minister of Finance Yair Lapid in early March, which caused many deals to be frozen. Industry sources say that purchases of new homes from contractors have fallen sharply since the announcement, adding that until the uncertainty is lifted about the criteria, purchases of new homes will stay low.
Published by Globes [online], Israel business news - www.globes-online.com - on May 4, 2014
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