Israeli Housing Market Sees Extreme Volatility in Q2 2026 Sales
The Israeli housing market experienced significant volatility in the second quarter of 2026, with public companies reporting dramatic fluctuations in apartment sales. Some firms saw sales surge by hundreds of percent, while others faced steep declines, highlighting a critical lack of stability in the sector. Unlike previous years where sales typically saw modest, single-digit percentage changes, the current market is characterized by unpredictable swings, largely driven by project-specific promotions.
Companies are resorting to aggressive sales tactics, often offering substantial discounts and incentives to move inventory, as they face pressure from large bank commitments. For instance, Tidhar, a recently listed company, reported a 1,760% increase in sales, selling 279 apartments in Q2 compared to just 15 in Q1. This surge was attributed to a promotion for a project in Tel Aviv. Similarly, Shikun & Binui saw an 850% jump in sales, selling 314 apartments in Q2 versus 33 in Q1, partly due to a vacation incentive package offered to buyers.
Other developers like Aura have also utilized promotions, such as partnerships with the 'Hever' club, to boost sales, reporting hundreds of apartments sold under these schemes. However, the article cautions that not all sales are equal, with projects in prime locations like Tel Aviv's Sde Dov carrying more weight than those in less central areas. Dori, for example, showed increased sales overall, but its key YAMA project in Sde Dov saw no new sales and even one cancellation in the last quarter.
Alongside sales figures, there's a growing concern about apartment purchase cancellations. Data from the Ministry of Finance indicates that only 40% of apartments sold between 2023 and 2025, often with high financing deals, have been delivered. While cancellation numbers are currently low, the full impact will only be clear in one to two years. Reporting on these cancellations has been inconsistent, with the Israel Securities Authority issuing guidance in January for companies to disclose cancellation details, though a standardized reporting method is still developing.
Developers are offering various financing incentives, including 20/80 payment plans (20% down, balance on delivery) and even 5/95 plans, alongside builder loans where the developer covers initial interest. Some are also subsidizing mortgage interest or absorbing construction cost index increases, in addition to traditional discounts and apartment upgrades. These aggressive tactics, including pre-sale offers, are being used to maximize sales without explicitly stating price reductions.
