Real Estate Agents Warn of 'Death Blow' to Secondhand Market Amid Slump

The Israeli real estate market is experiencing a significant downturn, leading to severe financial hardship for real estate agents. Many agents are leaving the profession, with one agent reporting that ten of his colleagues quit in the past year alone. Agents are struggling to make ends meet, with properties that once sold in two months now sitting on the market for up to a year.

Industry leaders attribute the crisis to a combination of high interest rates, unfavorable tax policies, and a lack of government support. They argue that current interest rates make it more profitable to earn passive income from bank deposits than to invest in real estate, especially since property value appreciation has stalled. The high purchase tax, once a smaller percentage, is also cited as a deterrent to investors.

Shamir, a real estate agent, expressed his concern by advising a friend against entering the brokerage field, citing three years of challenging market conditions that are fundamentally altering the industry. He noted that some brokerage offices are shrinking, with owners returning to active agent roles, and experienced agents are leaving to open smaller, competing boutique firms.

Itzik Levi, chairman of the Real Estate Agents Association, is critical of the government's inaction. He has proposed solutions including rezoning for residential and commercial use, tax breaks on vacant properties, subsidized mortgages for young couples, and incentives for contractors. Levi hopes that post-election changes in the economic, security, and political landscape will revitalize the market, aiming for 2027 to be a year of recovery.

Levi emphasized that the struggles of real estate agents reflect the broader health of the Israeli economy, as a thriving real estate sector supports numerous related professions. He urged the government to implement an emergency plan to remove obstacles and stimulate growth, asserting that a revived real estate market will drive overall economic expansion.