Major Investors Buy Israeli Apartments at Discount Amid Housing Market Slump
Translated & summarized from NEWSru Israel by baba
Large investors are buying Israeli apartments at discounts of up to 20% during the longest housing price decline in a decade, with transactions totaling about half a billion shekels. Smaller investors are waiting, possibly for the 8% investment property tax to expire at the end of 2026. Reduced land sales for construction could lead to a future housing shortage and price increases.
The story in 5 lines · by baba
- Large investors are buying Israeli apartments at discounts of up to 20% amid a decade-long price slump.
- These investor purchases have totaled approximately half a billion shekels in the past year.
- Apartment prices in Israel have decreased by 1.8% over the last year.
- Smaller investors are holding back, potentially awaiting the expiration of an 8% investment property tax in late 2026.
- A 43% reduction in land offered for construction in early 2026 could cause future housing shortages.
Large investors are actively purchasing apartments in Israel for rental purposes, taking advantage of discounts up to 20% amid the longest housing price decline in a decade. According to The Marker economic commentator Adar Horesh, these transactions have amounted to approximately half a billion shekels over the past year. Official data from the Central Bureau of Statistics indicates an 1.8% decrease in apartment prices over the last year.
Smaller private investors, however, are hesitant to re-enter the market. One potential reason is the anticipation of the repeal of the 8% increased tax on investment property purchases, which is set to expire at the end of 2026. The future trajectory of the housing market, as noted by The Marker, will be influenced by the Bank of Israel's interest rate policies, government tax strategies, and the volume of new construction.
In the first half of 2026, the Israel Land Authority offered plots for the construction of 13,000 apartments, a 43% reduction compared to the previous year. This decrease in construction and land availability could potentially lead to a future housing shortage and a resurgence in price growth, despite the current surplus of unsold apartments.
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