A rush to buy apartments following the announcement that the purchase tax will be raised: many developers are reporting that investors and buyers are flocking to their sales offices.
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Finance Minister Avigdor Lieberman, Housing Minister Ze'ev Elkin, and Interior Minister Ayelet Shaked, who presented the government housing program a few days ago, announced the purchase tax for investors would rise from 5% to 8%. The move is supposed to be expedited within two weeks, to prevent a rush that will cause prices to rise. But the market, as expected, has reacted immediately.
The Barzilai Group and developer Gilad Mor, who are constructing and marketing a new project in the Shahar neighborhood in Dimona, reported that the day after the announcement was made, they sold 14 apartments totaling NIS 14 million. The company began marketing the project 10 days ago and has already sold 60 apartments for about NIS 55 million.
Gilad Mor: "The government is just facilitating another rise in prices, especially in the periphery. Investors will now overrun the market and buy more apartments, which will have an impact on other buyers, too, such as young couples and apartment owners seeking improved accommodation. If you don't buy an apartment soon, you're making a mistake, because the prices in the market today won't return."
Eldar Marketing reported a sharp surge in the number of investors arriving at their sales offices in the 99 projects the company is marketing throughout the country.
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Roni Cohen, CEO of Eldar Marketing, said: "We're seeing increased activity in dozens of sales offices that we operate throughout the country, including investors who had already begun the process of buying an apartment and are now eager to close the deal, and new investors. I expect a surge of at least 30% in purchases by investors in the coming days, so that one in four buyers will be an investor."
Effi Capital sold 15 apartments to investors in two days, in Jerusalem, Ashkelon, Gedera, and Or Akiva, totaling about NIS 28 million. Grofit decided to move up the marketing of its project on Lassalle Street in Tel Aviv and closed 3 deals with investors at another project in Ramat Hen.
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