Israeli Developers Offer Rent Payments and World Cup Tickets to Boost Housing Sales Amid Market Slump
As the first half of 2026 concludes, Israel's real estate market shows no signs of recovery, with transaction volumes declining and young couples hesitant to buy amid high prices and rising rents. The tech sector layoffs and a weakening dollar further deter affluent buyers, forcing developers to innovate with attractive payment terms and perks to entice purchasers.
Gindi Holdings launched a campaign in Herzliya offering full rent payments for three years, valued at about 360,000 shekels, for buyers of five-room apartments starting at 5.28 million shekels. Similarly, Tzarfati Tzvi & Sons promises monthly payments of 7,000 shekels for up to four years to buyers in their YTOWN project in Rishon Lezion, with apartments priced between 2.9 and 3.65 million shekels. These offers aim to ease the financial burden of paying rent and mortgage simultaneously during the purchase process.
Another emerging strategy is the Rent-to-Own model, applied by ISA Group in Mevaseret Zion, where tenants can convert rent payments into equity if they decide to buy after a set period. Magma marketing manager Zohar Shariki explains this approach helps young buyers accumulate down payments while developers fill unsold units. Captain Invest CEO Yehav Shpinard notes the model provides cash flow for developers and reduces buyer uncertainty but warns of potential risks, including premium costs and fluctuating future purchase prices.
Phoenix chief economist Matan Shtrit emphasizes that despite these creative offers, high prices continue to suppress demand. He states that while such promotions may marginally support sales, they do not reverse the overall cooling trend. Even with expected interest rate declines, affordability remains a major barrier due to the need for substantial down payments and large mortgages. Shtrit concludes that without significant price adjustments, demand weakness will persist amid historically high housing supply levels.
