Rotstein CEO Predicts 25% Sales Drop Amid Market Challenges
Avishai Ben Haim, CEO of Rotstein, anticipates a significant downturn in sales for the current year, estimating a drop of approximately 25% compared to the previous year. In 2025, Rotstein sold 354 housing units. Ben Haim noted that sales have been slow, though he observes some selectivity based on project location. He mentioned that sales have shown signs of improvement in the last month, with relatively normal sales activity in locations like Beit Shemesh and Petah Tikva, and strong performance in Jerusalem. However, sales in the Tel Aviv area remain challenging, despite a notable increase in penthouse sales during this period.
Ben Haim attributed the current market difficulties to several factors, including upcoming elections, which he believes are causing many potential buyers to wait for stabilization. He also pointed to the general atmosphere, which is not conducive to major financial decisions, and the current interest rate levels, although he expects a potential decrease in rates to stimulate sales. He expressed optimism that the market will stabilize after the elections, allowing business to resume more normally.
Rotstein's financial reports for the first half of 2026 reflect these challenges, showing a decrease in units sold (121 compared to 149 in the first half of 2025) and a drop in revenues from approximately NIS 318 million in the first half of 2025 to NIS 228 million in the first half of 2026. This revenue figure is also impacted by Rotstein's sale of its share in Anshei Ha'ir. Gross profit fell from approximately NIS 76 million to NIS 40.3 million, and net profit saw a sharp decline of over 80%, from about NIS 78.5 million to NIS 14 million.
Despite the declining figures, Ben Haim conveyed confidence to investors, stating that the company is managing its project pipeline effectively. He highlighted that Rotstein is concluding existing projects and initiating new ones, with a sales pace that supports this transition. He also emphasized the establishment of a new engineering division, Rotstein Engineering, about 18 months ago, predicting its significant contribution to gross profit starting next year, potentially adding over NIS 10-20 million.
