12/18/2024–|Last updated: 12/18/202411:11 PM (Mecca time)
The Israeli newspaper “Calcalist” reported in a report that the real estate market in Kiryat Shmona has been suffering from a severe stagnation since the recent ceasefire in the north between Hezbollah and Israel.
Despite the relative calm in the region, uncertainty about the future prevents the market from recovering, while residents are waiting for large government investments to stimulate economic activity, which has not yet been achieved, according to the newspaper.
Market stopped
According to IRS data, only 79 apartments were sold in the city between October 2023 and August 2024, compared to 115 deals during just the first two months of 2022.
Real estate prices also decreased significantly, as only 11 real estate deals exceeded the one million shekels barrier, compared to dozens of deals that exceeded this number in 2022.
Abithar Cohen, a real estate broker in Kiryat Shmona, told Calcalist: The market is in a state of complete stagnation, indicating that most of the recent deals either occurred before the war or were the result of selling an inheritance.
He explained: “Business has completely stopped, there is no active commercial center, almost everything is closed.” He also pointed out that the city depends on purchasing power from residents of the Upper Galilee, who have not yet returned.
Big challenges
Cohen believes that the real estate market is suffering from increasing pressure on investors, but he pointed out that most of them are not prepared to sell at huge losses.
He added that the challenges are not limited to sales only, but also extend to rents, which have witnessed a significant decline.
For example, rents for old houses on the land were about 3,500 shekels ($980) per month, but now they have fallen to about 2,500 shekels ($700).
Yedidiah Alnatan, a real estate broker in Al-Karia, indicates that the market may gradually recover as the vision for the future becomes clear, but he called for additional reductions of 15% in prices to attract buyers.
“The low rents reflect the current situation, but I expect the market to return to normal over time,” he told Calcalist.
Government negligence
The report indicates that residents are anticipating comprehensive reconstruction plans that include huge investments similar to those witnessed in southern Israel, but the absence of these plans raises concerns about the region’s ability to recover.
According to Cohen, promised government initiatives, such as establishing a university and a railway, are still far from being implemented.
