Israel's Real Estate Market Sees Sharp Sales Drop, Rising Inventory
Translated & summarized from i24NEWS by baba
Israel's real estate market saw a 7.3% drop in apartment sales in the third quarter compared to last year, with secondhand sales down 14%. The inventory of unsold apartments held by contractors reached 85,080 by the end of September 2026. Prices for new apartments rose 0.5%, while secondhand prices fell 1.2%. Cities like Kiryat Gat and Jerusalem led in new and secondhand sales respectively.
The story in 5 lines · by baba
- Israel's apartment sales dropped 7.3% year-over-year in Q3, with secondhand sales down 14%.
- Contractors' unsold apartment inventory hit 85,080 units by September 2026.
- New apartment prices rose 0.5% in Q3, while secondhand prices fell 1.2%.
- Kiryat Gat led new apartment sales, driven by a discount program.
- Jerusalem and Tel Aviv hold the largest inventories of unsold apartments.
Israel's real estate market experienced a significant downturn in the third quarter of the year, with sales of both new and secondhand apartments declining. According to data released by the Central Bureau of Statistics on Thursday, 21,750 apartments were sold between July and September. This represents a 5.7% decrease compared to the previous quarter and a 7.3% drop from the same period in 2025.
New apartment sales fell by 12% from the previous quarter, though they saw a 4% increase year-over-year. Secondhand apartment sales experienced a more substantial decline of 14% compared to the third quarter of 2025. While prices for new apartments rose slightly by 0.5%, secondhand apartment prices decreased by 1.2%.
The Central Bureau of Statistics also reported a continued surge in the inventory of unsold apartments held by contractors. By the end of September 2026, there were 85,080 apartments on the market, with an average of 25.8 months of supply needed to sell them.
Cities like Kiryat Gat, Haifa, Tel Aviv, and Petah Tikva led in new apartment sales, with Kiryat Gat's sales largely driven by the "Apartment for Discount" program. In the secondhand market, Jerusalem, Haifa, Be'er Sheva, Ashkelon, and Tel Aviv saw the most transactions. Jerusalem and Tel Aviv have the largest unsold inventory, each with over 10,000 units, followed by Bat Yam and Ramat Gan.
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