Israeli Housing Market Sees Stable Sales Amidst Shift to Cheaper Units and Financing Deals

Despite a slight dip in new apartment sales in September compared to the previous year, the Israeli construction sector has managed to maintain sales volume through a combination of selling more affordable units and offering attractive financing deals. While 2,669 new apartments were sold in September, a 0.7% decrease from September 2025, the total revenue from these sales saw a significant real drop of 21% to 5.8 billion shekels. This discrepancy is attributed to a shift in sales composition, with 47% of free-market apartments sold in September located in the periphery, up from 36% in the prior year.

Furthermore, financing promotions, where buyers pay a smaller down payment and the rest upon key handover, have become increasingly prevalent. In September, 45% of free-market transactions in monitored areas included such financing benefits, a substantial increase from August 2026. This trend follows the easing of Bank of Israel restrictions on such offers, with September recording the highest rate of financing deals since their reintroduction. Specific regions like Hadera saw 74% of sales with financing deals, while Beersheba and Tel Aviv also experienced significant rises.

These strategies, including financing deals and a focus on cheaper locations, have helped construction companies, particularly larger ones, to sustain sales. However, the overall market, including the second-hand market, experienced one of its weakest Septembers since 2000. The second-hand market, with only 3,577 transactions (a 16% drop from the previous year), lacks the promotional tools available to developers. While these temporary measures have bought developers time, the article suggests that without a return of buyers, smaller construction companies may face significant challenges.