Housing Market Misleads on Price Drops, Experts Say

Recent social media posts highlighting significant price reductions on apartments in Israel are misleading, according to industry observers. While sellers are indeed lowering prices, often by 10-15%, these initial asking prices were frequently inflated and did not reflect true market value. In one instance in Modi'in, a 110-square-meter apartment was initially listed for 4.39 million shekels (nearly 40,000 shekels per square meter), a price comparable to some Tel Aviv neighborhoods. The seller later reduced the price to 3.75 million shekels. However, analysis shows that the average price per square meter in that area is between 28,000 and 34,000 shekels, even when accounting for large balconies. The initial price was likely an "aspirational" figure, not a reflection of market reality.

Similarly, an apartment in Tel Aviv was advertised with a price suggesting over 51,000 shekels per square meter, significantly above the area's average of 43,000 shekels. While the price was eventually adjusted to market levels, social media posts falsely claimed a nearly 16% price "slashing." The broker confirmed the apartment sold at market value.

While apartment prices have seen single-digit percentage decreases over the past two years, some developers are still selling units at prices higher than the 2024-2025 average. Some developers are reportedly offering discounts of up to 6.5% for full upfront payments on premium units, but experts dismiss claims of 15% discounts as dishonest. One developer stated that while prices have fallen, they are expected to rise when market conditions improve, and that the current period is the best time to buy property.