2024 ended on a real estate high note, with new house sales (on paper) in December up by 60% compared with November; and second-hand house sales also rose. The jump in sales was largely attributable to the upcoming rise in VAT (from 17% in 2024 to 18% in 2025) which created a flurry of activity before the change went into effect.
Overall, the sum total of mortgages in 2024 was 20% higher than in 2023 – indication that despite the war, the real estate market remained strong. 2025 is expected to see an increase in real estate sales and prices.
Though the Bank of Israel kept the interest rate unchanged at 4.5% last year, they have stated that the interest will go down by up to 0.5% in 2025. And, while the bank did not lower interest rates, mortgage interest rates are dropping over the last few months.
What does this mean for the Modiin market – firstly, there are no new projects expected in the city in the coming years so that will lead to increased demand on the existing market. The newest neighborhood – Moreshet -will be completed in the coming year and the neighborhood is becoming more popular as its education, commercial and health services have all opened, its playgrounds are being completed and the area is gaining in popularity.
The expected wave of aliya is starting to be realized with increased interest from international buyers who are planning to move in the next year or so; and increased interest amongst seniors who are buying second homes to have a foothold in the country, often near their local family. These trends will put further pressure on the local market and will lead to higher prices.
There is currently a brief window where the Modiin market is more of a buyer’s market – meaning there are properties for sale at competitive prices so it’s a good time to explore. Over the coming months, as the war ends and interest rates go down, the market will shift into a seller’s market…
Compiled by Rebecca Franks, HaBayit Shelanu based upon first-hand knowledge and reports published in Israeli and Anglo press including - Globes, Calcalist, Ynet, Haaretz, Jerusalem Post, Modiin News.