Now that the public realizes that the 0% VAT plan will not be enacted, the real estate market is heating up. Figures published today by the Central Bureau of Statistics show that demand for new housing units totaled 3,992 in November, a steep 14% rise, compared with October. Sales of new housing units leaped 24% to 2,306.
The Sukkot holiday, which fell in October this year, affected real estate activity, but sales and demand in November were the highest since July 2013. November sales were 22.4% higher than in November 2013, and demand was up 20%.
At the same time, the supply of new housing units rose 4.3% to 27,713, its highest level for years.
Former Minister of Finance Yair Lapid's 0% VAT plan was finally buried in December, but already in November the public felt that political disputes would prevent its passage, and this was reflected in the November figures.
Demand for new housing units was strongest in the central region, where sales skyrocketed 50% to 864 units, 18% more than in November 2013. Sales of new housing units actually fell 3.3% in Haifa, while sales in the southern region plummeted 15%, compared with November 2013.
Published by Globes [online], Israel business news - www.globes-online.com - on December 31, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014