Israel's Real Estate Market Faces Revenue Drop Amid Prolonged Stagnation

Israel's real estate market is experiencing a prolonged stagnation that has led to a sharp decline in government revenues from betterment tax and purchase tax. This downturn is occurring as the high purchase tax imposed on investors is set to expire in about six months. The future of this significant tax policy decision may be deferred to the next government. Yaniv Cohen, Senior Deputy Director for Real Estate Taxation at the Israel Tax Authority, discussed these developments in a special interview on Channel 12's program "The 12th Floor" on June 30, 2026. The ongoing freeze in the market raises concerns about the state's fiscal income and the potential impact of upcoming policy changes on investors and the broader real estate sector.