Foreign residents bought 2,800 apartments in Israel in 2009, 13% fewer apartments than in 2008, according to the Ministry of Finance survey on the real estate sector. Last year's drop in apartment purchases by foreign residents followed the 33% drop in 2008 over 2007, as the global economic crisis took hold.
Foreign residents purchased apartments for a total of NIS 4.3 billion in 2009, one fifth of which was for luxury apartments.
The Ministry of Finance said, "The sharpest drop in apartment purchases by foreign residents was in the Central District, including Netanya and Rehovot - down 34-41%. The activity of residents in the high-end segment of the market was also down 19% in numerical terms and down 22% in financial terms." However, foreign residents still accounted for 30% of purchases of luxury apartments.
Foreign residents accounted for 2.8% of apartment sales in 2009, down from 5% in the peak year of their activity. Foreign residents were most active in Jerusalem, Eilat, and Netanya, accounting for 6-11% of the local housing market.
Foreign residents also sold 2,400 apartments in 2009, 10% more than in 2008.
Published by Globes [online], Israel business news - www.globes-online.com - on January 11, 2010
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