Israel's Housing Market Sees Significant Sales Jump, Southern Region Leads

Israel's housing market experienced a notable surge in sales during May-July, with approximately 25,160 apartments sold, marking a 20.8% increase compared to the preceding three months. Even after accounting for seasonal variations, sales rose by 12.8%. When compared to the same period in 2025, there was a 19.2% year-over-year increase, indicating a market recovery, despite 12 days of the period falling within wartime.

New apartments accounted for 41.6% of total sales, with a third of these being discounted units. Sales of new apartments saw a substantial 30.4% rise from the previous quarter and a significant 42% jump compared to the previous year. Second-hand apartments still constitute the majority of the market, making up 58.4% of sales, with nearly 15% growth in the last quarter. July alone saw 7,600 apartment sales.

The central and southern regions led in overall apartment sales, accounting for about 45% of transactions. Notably, the southern region spearheaded new apartment sales, representing roughly a quarter of all deals, surpassing Tel Aviv and the central region, which together accounted for 23% of new apartment sales. While Tel Aviv-Yafo, Kiryat Gat, and Haifa led in new apartment sales, Jerusalem, Haifa, and Be'er Sheva were top in second-hand apartment transactions.

The number of unsold apartments is approaching 85,000, with an estimated 15,000 to 16,000 ready for occupancy. Since April 2025, there has been a monthly increase of 1.4% in unsold apartments. Over half of the unsold inventory is concentrated in the Tel Aviv and central regions, with 30.8% in Tel Aviv (26,170 units) and 24.7% in the central region (20,990 units). The article suggests that the slowdown in Tel Aviv's housing market, with approximately 9,720 unsold apartments, is contributing to price decreases in its vicinity, even as the southern region sees higher sales volumes.