Real estate sales to overseas buyers up in 2008, but demand slowing

Real estate broker: "I believe fall is temporary. Demand will pick up again once the crisis ends."

By JOHN BENZAQUEN
December 25, 2008 08:00
1 minute read.
Real estate sales to overseas buyers up in 2008, but demand slowing

Raanana home 88 248. (photo credit: Anglo-Saxon)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user uxperience almost completely free of ads
  • Access to our Premium Section and our monthly magazine to learn Hebrew, Ivrit
  • Content from the award-winning Jerusalem Repor
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

Demand for real estate from overseas buyers rose 10 percent in 2008, but demand is set to drop, according to a recent survey by Anglo Saxon Real Estate Brokerage. Demand was up in the first half of the year and then gradually fell during the second half, the survey found. Anglo Saxon attributed the rise in overseas demand for real estate to increased interest from Australia, South Africa and Canada, which offset a fall in demand from the UK and France. In 2007, purchases from the UK and France accounted for 47% of foreign real-estate transactions; by 2008, it had fallen to 30%. Purchases by Canadians, South Africans and Australians, which in 2007 accounted for 15% of sales to overseas buyers, rose to 25% in 2008. "Demand from overseas buyers in 2008 rose in general," Anglo Saxon general manager Adina Hacham told The Jerusalem Post. "But in the last months of the year, demand has fallen, and I'm afraid this trend will continue through 2009." Americans, who are mostly religious, tend to buy in Jerusalem and the surrounding area, especially Beit Shemesh, she said. The British, who tend to be more secular, like Ra'anana and the coastal plain, while the French prefer Ashdod, Ashkelon and Bat Yam, Hacham said. According to Joe Cohen, a real-estate broker in Ra'anana, a sharp drop in sales to overseas buyers is expected in 2009. "We are experiencing a big economic crisis, a terrific credit crunch," he told the Post. "It stands to reason that in such a situation, demand for real estate will fall - not only from overseas customers, but from locals as well. But I believe the fall in overseas demand is temporary. Demand will pick up again once the crisis ends." Interest from French Jews is constant because they feel threatened in France, Cohen said. Demand from elderly Jews from English-speaking who want to retire in Israel, and from wealthy families who want to own a second home in Israel, is also strong, he said. The current fall in demand will have a negative effect on the real-estate market in general, but it will have a much larger impact on homes that cost $1 million, Cohen said.

Related Content

Front view of Doctors Private Clinics - HaBarzel 11 st. Tel-Aviv
May 14, 2018
Doctors Private Clinics - HaBarzel 11 st. Tel-Aviv.

By ASSI VENIG