Developers and bankers say demand remains strong, with safer apartments in focus
At a real estate panel held at the Mizrahi Tefahot housing conference, in partnership with Yedioth Ahronoth, industry leaders discussed how deals are still being made despite a difficult market. Participants included Peretz Bonei HaNegev CEO Michal Gur, Mizrahi Tefahot real estate and construction sector head Penina Ela, and RE/MAX Israel founder and CEO Bernard Raskin.
Ela said the bank is financing hundreds of projects nationwide, with urban renewal now accounting for about 40% of the projects it backs, more than new construction starts at roughly 30%. She said many delayed evacuation-reconstruction projects are only now reaching financing, while longer construction timelines are squeezing developers' profits. Gur said her company focuses on areas where homes cost between 1.5 million and 3 million shekels, because sales there are stronger, and she urged buyers to enter the market earlier, even through smaller or secondhand apartments. She also criticized the government's discounted-housing lottery program, saying it concentrated about 50 billion shekels on around 100,000 selected winners.
Raskin said the market is not frozen and that deals are still closing in every situation, including during the COVID-19 shutdowns. He said May was RE/MAX's best May in four years and that secondhand home sales are close to normal, even though first-sale housing is under heavy pressure. He said buyers are looking for mamad shelters now, not in two years, and that the country's trauma has not stopped transactions.
On financing, Ela said 2024 was saturated with 20-80 payment plans, but a March 2025 temporary order from the banking supervisor restricted them through the end of 2026, causing some decline. She said developers can still use such deals for up to 25% of a project, especially in presale, alongside other tools like contractor loans. Gur added that developers must match market financing incentives, but can differentiate by enlarging shelters into mamashim, protected spaces with toilets and sometimes showers, which she said have become a major selling point. Raskin concluded that calm and security drive demand, including from foreign residents who buy Israeli homes for peace of mind.
