Israel Canada Sees 35% Drop in Apartment Sales but Average Price Rises to 5.75 Million Shekels

Israel Canada, a real estate company controlled by Barak Rosen and Assi Tuchmaier, reported a 35% decline in apartment sales during the second quarter, selling 56 units compared to 86 in the first quarter. The total sales revenue fell by 28% to 322 million shekels. However, the average price per apartment increased to 5.75 million shekels from 5.2 million shekels in the previous quarter. A significant portion of sales, 76%, were made through company marketing promotions, accounting for 245 million shekels in revenue. Since the start of the year, two sales agreements worth 9 million shekels were canceled.

Despite the sales slowdown, Israel Canada returned to profitability in Q2 with a net profit of 22 million shekels, recovering from a 4 million shekel loss in the same quarter last year. Nevertheless, the company recorded a half-year loss of 36 million shekels due to earlier losses in the hotel sector, which were impacted by the security situation and the "Operation Breaking Dawn" military campaign. The company noted cancellations and reduced hotel occupancy during the operation, with no replacement guests as in previous periods. Although hotel operations have resumed fully, occupancy rates in Q2 were still affected by ongoing security uncertainties.

In the Rainbow project at Sde Dov, a key development for Israel Canada, three apartments were sold in Q2 compared to four in Q1, with the average price per square meter dropping about 3% to approximately 80,500 shekels including VAT. To date, 271 apartments have been sold in this project, with 184 remaining for sale. Since the end of June, five additional contracts have been signed. In the Midtown project in Jerusalem, 12 sales agreements were signed in Q2, down from 17 in Q1. So far, 284 apartments have been sold, with 411 still available. Nine more apartments were sold after the reporting period and before publication.