Israel’s new homes sales reflect crisis in market

Off -akim leads to sales of new apartments in Israel. The real estate importance is that on the eve of the outbreak of the war with Iran, the real estate market, the new apartments in particular, was in a deep crisis.

In Jerusalem, the number of new apartments purchased in March 2025 decreased by approximately 60 %, in Tel Aviv more than 50 %, and Perseva did not make the table. The supply of apartments continues to break the records and has already reached 81,000 housing units, which exceeds a year from the start of buildings, according to the reports of the Central Bureau of Statistics.

There is no data so far as of June, the month in which the 12 -day war has embraced between Israel and Iran, but since its previous months, it is clear how weak the real estate market in the war. 6820 transactions were implemented in May, a decrease of 20 % of May 2024 and an increase of 4 % from April, where the Passover decreased. The months that followed Easter usually witness a significant increase in the number of deals, due to the deals that have been postponed from the holiday, but this year did not happen.

Offakim was the leading city in terms of sales of new apartments. 532 apartments there were between March and May 2025, a decrease of 21 % from the previous three months (December 2024 February 2025). Between December 2024 and February 2025, this figure had set off the fourth off.

Low point in Tel Aviv and Jerusalem

Despite the decrease, the Off the table leads the table because Tel Aviv and Jerusalem have suffered a severe decrease in sales in these three months. In Tel Aviv, sales of new apartments decreased by 51 % to only 461, which were still sufficient to put them in second place, while Jerusalem, where sales fell 59 %, were in fifth place with the sale of 358 new apartments. Ashdoud ranked third, with 461 apartments sold, and Lod ranked fourth with the sale of 392 apartments.

In general, including all apartments, leaders in the real estate market in Israel are the major cities: Jerusalem, 1,218 apartments were sold between March and May, and Tel Aviv, where 1074 apartments were sold, where an apartment was sold about 900 apartments. The data indicate that the southern city has been completely expelled from the highest sales of new apartments – additional evidence of the stagnation of the market, and may enhance Percifion Mayor Rubik Danilovic’s claim that Ofakim, whose population has tax benefits, but they are pleased to “steal” from Perchava residents, who prefer to buy apartments in the nearby small city, which they somewhat provide to apartments.

In total 21,800 sales homes

Given the total market, in the three months from March to May, 21800 apartments were sold, a decrease of approximately 25 % from the previous three months, and a decrease of 14 % of the corresponding period in 2024. The main decrease in new apartments was recorded in new apartments (Jerusalem (44 %). In the used apartments market, the decrease was more moderate, with a total of 14 %.

All this directly affects the supply of new apartments, which continue to break the records, and in May it reached 81000. To get rid of this stock, developers will need 30 months, according to the current pace of purchases. This is three times slower than 4 years, when the market was at its peak.

Tel Aviv continues to drive apartments supplies with 10,140 new apartments for sale in the city, followed by Jerusalem with 7774 apartments, Bat Yam with 4,405 apartments and Network with 3,699 apartments.

It was published by Globes, Israel Business News – En.globes.co.il – on July 14, 2025.

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