Israeli Real Estate Firms Show Mixed Sales Despite Market Slowdown

New apartment sales in Israel remain sluggish, but first-half 2026 financial reports from real estate companies reveal a complex picture. While some firms are selling hundreds of units and even increasing their sales pace, others are experiencing significantly lower transaction volumes, with some projects seeing only a handful of deals or none at all.

A Pega-Sigma research analysis of 17 prominent public real estate companies shows they sold 1,571 new apartments in the second quarter, a 36% increase from the 1,158 sold in the first quarter. However, this figure is still about 2% lower than their average quarterly sales over the past 12 quarters. Only five of the 17 companies exceeded their individual averages, and the median company achieved only roughly 70% of its 12-quarter average.

The composition of sales is also noteworthy. Shikun & Binui led with 309 units sold in Q2, a jump from 33 in Q1, but over 60% of these sales came from a single government-subsidized "Price for the Resident" project. Similarly, Amram Avraham's sales of 199 units were also over 60% from subsidized projects. Excluding Shikun & Binui, the remaining companies sold 1,262 units, a 17% decrease from their 12-quarter average, with the Q1-to-Q2 increase shrinking to 12%.

Demri reported stable sales of 231 units in Q2, close to its 12-quarter average of 229, though some sales were also from subsidized housing. Aura's sales dropped to 128 units in Q2 from 163 in Q1, with some sales from rental projects. Only after the quarter ended did Aura launch a promotion with discounts of up to 12%, which saw a strong response, indicating that demand exists but is highly sensitive to price and deal terms.

Luxury projects, however, are seeing sales nearly halt. Aviv Group sold no apartments in the first half of the year, with one high-end project in Tel Aviv recording no sales in the first six months. Hageg Group also experienced disparities, with one project in Tel Aviv boosting sales while another in the same city saw no sales in Q2. In the Sde Dov area, sales also varied significantly between projects, with some achieving high marketing rates while others have sold only a small percentage of available units.

The overall picture is not one of a completely frozen market, but neither is it a full recovery. While sales increased from Q1, 12 out of 17 companies are still selling below their three-year average, and a portion of the growth is attributed to subsidized housing. The significant differences between projects suggest buyers have become more selective, responding to attractive offers while remaining hesitant on others.