Since the outbreak of war on October 7, the Israeli real estate market has undergone a major upheaval. This was caused by an initial decrease in demand for apartments due to the uncertainty and fog of war, and due to the closure of many work sites after the blocking of the entry of tens of thousands of Palestinian workers from Gaza and Judea and Samaria until further notice. The number of homes sold in 2023 is only two thirds of all apartments sold in 2022. The values of many apartments throughout Israel began to decline (although many of them were exaggerated) in the first few weeks of the war, but they have since returned their value.
Many entrepreneurs in the Real estate market are optimistic about the future, despite the current difficulties, for a number of reasons: First, the demand for apartments did not really disappear, but was only postponed further on. Second, there may be an increase in demand, in anticipation of a wave of immigration to Israel after the war due to the rise of anti-Semitism (which would hopefuly be greater than a potential wave of emigrants). Third, the war has caused the Bank of Israel to lower interest rates, which is a great boost to the industry. And fourth, if Hamas is defeated, the broad southern regions will become more desirable and more productive for building projects.
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