Corona has had a major impact on our lives, and also on the economy. How has the local property market reacted to Corona?
In the last few months, the CBS (central bureau of statistics) has published three reports regarding property in Israel. These reports include insightful information about the property market in Beit Shemesh.
Apartments sales at peak of a decade
The one report followed the number of apartments sold between August 2020 and October 2020. According to this report, more apartments were sold in this period than in the same period in the last 10 years. When we check where all these apartments were bought, we will find Beit Shemesh in the second place with 566 apartments sold and with Ashkelon ahead of it with 926 apartments sold. The third place was taken by Tel Aviv with 466 apartments sold.
This fact is very interesting when you take into account that Tel Aviv is the second-largest city in the country, and Beit Shemesh is number 15 on the same list...
What about the prices?
Another report analyzed the price changes between April 2019 and March 2020.
In this period property prices in Beit Shemesh rose by 18%. This jump was higher than any other city in Israel. Ramat Gan came second, with an 11.2% price rise, nearly 7% less than Beit Shemesh.
This price rise has brought the price of an average apartment to 1.41 million NIS, and an average 5 room apartment to 1.65 million NIS.
When you see the number of apartments sold and the capital appreciation, it is easy to understand why 27% of the apartments in Beit Shemesh were bought by investors. This percentage puts Beit Shemesh in second place together with Haifa.
All these reports only discuss what has been until now, and do not promise anything regarding the future. At Aliza Realty we can personally feel the increasing demand. From what we see it is led by many Jews overseas that see Beit Shemesh as an ideal investment that they can also consider as their home in the future.
If you are interested in learning about new developments in Beit Shemesh, you can read this article.
a. Amount of apartments sold: https://www.cbs.gov.il/he/mediarelease/DocLib/2020/398/04_20_398b.pd
b. Price change:
c. Percentage of apartments bought by investors: