Tel Aviv New Apartment Sales Plummet 60%, Haifa Leads Market
Translated & summarized from Globes by baba
New apartment sales in Tel Aviv plunged 60% in Q3 2026, leading to a 5% rise in unsold inventory. Haifa unexpectedly took the top spot in total property transactions for the first time, driven by new construction and a strong second-hand market. Nationwide sales fell 6% in the quarter, with subsidized housing making up a significant portion of new sales, indicating market stagnation.
The story in 5 lines · by baba
- Tel Aviv new apartment sales dropped 60% in Q3 2026, reaching the lowest point since Q3 2025.
- Haifa led all Israeli cities in total property transactions for the first time in recorded history.
- Nationwide apartment sales decreased by 6% in Q3 2026 compared to the previous quarter.
- Unsold new apartments nationwide reached approximately 85,000 by the end of Q3 2026.
- Subsidized housing programs accounted for 36% of new apartments sold in the third quarter.
New apartment sales in Tel Aviv experienced a dramatic 60% drop in the third quarter of 2026 compared to the previous quarter, contributing to an overall decline in new property transactions. This downturn led to a 5% increase in the supply of unsold apartments in Tel Aviv during the same period, according to data from the Central Bureau of Statistics (CBS).
The slowdown is also evident in Tel Aviv's second-hand housing market, which saw a 13% decrease in sales. Consequently, Haifa has emerged as the leader in total property transactions for the first time in recorded history, surpassing cities like Jerusalem and Tel Aviv.
Nationwide, approximately 21,800 apartments were sold in the third quarter, a 6% decrease from the second quarter. While the High Holidays in September contributed to the dip, the third quarter was weaker even when accounting for holidays in both periods. The CBS data indicates a monthly increase in transactions since January 2026, driven by new apartment sales, whereas second-hand apartment sales reached their lowest point since the start of the war in September.
Subsidized housing programs, such as "Apartment at a Discount," accounted for 36% of all new apartments sold in the third quarter, suggesting a significant stagnation in the broader new housing market. Tel Aviv recorded the weakest performance in new apartment sales since the third quarter of 2025, with only 537 units sold. In contrast, Kiryat Gat sold 1,030 new apartments, many through the discount program, placing it second in overall sales.
Haifa's leading position is attributed to a combination of strong second-hand market activity and significant new construction, resulting in a record number of sales for the city in decades. Jerusalem, typically a top performer, ranked third, with its new apartment market experiencing a slowdown for about 18 months. At the end of the third quarter, around 85,000 new apartments remained unsold nationwide, with Jerusalem and Tel Aviv having the largest inventories.
