New Home Sales Jump 25% in Israel, But Developers Still Face Large Inventory
Translated & summarized from Calcalist by baba
New home sales in Israel rose 25% in June-August 2026 compared to the previous year, driven by a low sales base in 2025 and increased government housing program purchases. However, excluding subsidized deals, the growth was only 12.9%. Developers are still burdened by a record 85,680 unsold apartments, projected to take over two years to clear, indicating a sluggish market trend.
The story in 6 lines · by baba
- New home sales in Israel increased by 25% from June to August 2026 compared to the same period in 2025.
- The sales surge was influenced by a low sales figure in June-August 2025 due to Operation "With All Your Might."
- Sales in government housing programs significantly boosted the 2026 figures, with 3,618 subsidized units sold.
- Excluding subsidized sales, the year-over-year increase in new home sales was a more modest 12.9%.
- Developers are holding a record inventory of 85,680 unsold new apartments.
- It is estimated that it will take 26.7 months to sell the current inventory of unsold apartments.
New home sales in Israel surged by 25% during June-August 2026 compared to the same period in 2025, according to data released by the Central Bureau of Statistics (CBS). This increase, which saw 10,110 new apartments sold versus 8,101 in the prior year, was largely driven by external, one-time factors rather than a sustained market improvement.
The significant jump was influenced by two main events. In June 2025, sales were unusually low due to Operation "With All Your Might," with only 2,000 new apartments sold, the lowest figure in at least three years. Conversely, June-August 2026 saw a notable rise in sales within government housing programs like "Price for the Resident," with approximately 1,200 subsidized apartments sold each month, totaling 3,618 units in the period. This marks the first time since 2021 that three consecutive months have exceeded 1,000 subsidized apartment sales.
Excluding these government-subsidized deals, the year-over-year increase in new home sales between June and August 2026 shrinks considerably to 12.9%, with 6,498 units sold compared to 5,754 in the previous year. This suggests that the free market, which faces declining demand due to rising interest rates since 2021, is not experiencing the same boom.
Overall, the CBS reported 24,200 new and second-hand apartments sold in June-August 2026, an 11% increase from the preceding three months. However, after adjusting for seasonal effects, this represents a 2.9% decrease. While there's an 8.5% year-over-year increase when compared to June-August 2025, this figure is heavily skewed by the low sales during the military operation last year.
Despite the headline sales figures, developers continue to grapple with a historically high inventory of unsold new apartments. The CBS estimates there are 85,680 unsold units, which would take an estimated 26.7 months to sell at the current pace. This calculation includes subsidized sales, implying the actual sales pace in the free market is even slower.
