Five Real Estate Firms Sell 64% of Israeli Apartments in Q2

Five major real estate companies sold 64% of all apartments in Israel during the second quarter of the year, a significantly concentrated figure that deviates from the typically more competitive market. While dozens of companies often operate in a single city and multiple developers may be active in a neighborhood, the Q2 data reveals an unusual level of market dominance by a few firms. This concentration can sometimes occur during promotional campaigns, such as pre-sale events where companies sell numerous units at once.

The data pertains to publicly traded companies, which are required to publish their financial reports, making their sales figures more transparent than those of private firms. Avi Shakuri, a senior analyst at Psagot-Sigma Brokerage, identified the five leading companies based on their Q2 sales.

Shikun & Binui led the pack with 309 apartment sales, followed by Dori with 231, Amram with 199, Kardan Real Estate with 144, and Aure with 128. Notably, Shikun & Binui experienced a substantial 412% surge in sales compared to its average. The top three companies alone accounted for 47% of all apartment sales in the quarter. In contrast, nine smaller companies collectively sold fewer than 350 apartments.

Further analysis indicates that a significant portion of sales for some companies were attributed to government-subsidized housing programs like "Mechir L'Iskan" (Price for the Resident). For instance, over 60% of Shikun & Binui's reported Q2 sales and over 60% of Amram's sales originated from such projects. Additionally, some companies reported high post-balance sheet sales, such as Aure, which sold 429 units after the reporting period, largely due to a "member promotion." Amram also sold 293 units post-balance sheet, with about half from "Mechir L'Iskan" projects.

The report suggests that the Q2 sales surge does not signify a market recovery but rather an optical effect stemming from a particularly weak previous quarter. Shikun & Binui's performance, selling 309 units compared to an average of 75, was a major factor in this quarterly jump. Only five out of seventeen companies exceeded their 12-quarter average sales, with the industry median at only 70% of its historical average. While ten companies improved their sales compared to the previous quarter, only five surpassed their long-term averages.