For the previous 4 consecutive months the house value index has fallen by an accumulative 1.3%. This can be a main decline led by the Tel Aviv District, which has fallen 4.3% since February.
The variety of offers accomplished within the first half of 2025 was down 14% in contrast with the primary half of 2024. The decline in purchases of latest flats, was down 28%, whereas in second-hand flats the decline was solely 0.5%. Nonetheless, an investigation by “Globes” discovered that there’s a excessive variation between areas when it comes to the decline in condo purchases over the previous 12 months.
Probably the most notable decline: new flats
Simply as the worth declines didn’t have an effect on the nation equally, the decline within the variety of offers was not distributed equally and in sure cities. The cities that stand out with distinctive declines within the first half of 2025 in contrast with the primary half of 2024 are Ashkelon (down 30%), Petah Tikva (24%), and Beersheva (18%).
Ashkelon has been one of many cities in recent times with the very best variety of new flats constructed and bought, however its decline in new condo gross sales didn’t start this 12 months. In 2021, it led the gross sales chart for brand spanking new flats, however gross sales steadily weakened and town fell from its main place within the following years. The provision of unsold new flats within the metropolis has additionally remained kind of on the similar stage for over a 12 months, which reveals that the development and gross sales charges of latest flats have reached a sort of stability, though gross sales of latest flats have fallen by two-thirds.
A part of this was offset by a rise within the buy of second-hand flats, however total the tip result’s a really giant fall within the buy of flats within the metropolis.
Beersheva has additionally seen a serious fall in condo purchases, relative to the primary half of 2024, and once more the primary cause for that is the brand new properties market. The variety of offers within the metropolis fell 18%, however whereas the autumn in second-hand flats was 5%, new properties gross sales fell 52%.
Shai Stern of RE/MAX – Plus actual property company in Beersheva says, “We really feel it effectively and the numbers do not lie. Finally, I believe the secret is the excessive rate of interest.” He believes that there are property house owners out there at present who’re keen to be versatile on condo costs, whereas alternatively there are buyers who really feel that that is the time to seek out alternatives, which is supporting the Beersheva market a little bit.
On new flats, Stern says he agrees with Beersheva Mayor Rubik Danilovitz, who complains about tax advantages that residents of surrounding cities obtain, which suggests folks choose to buy new flats or land tons in close by Ofakim, and reduces demand for flats in Beersheva. “In line with the information we now have, lots of of households from Beersheva are preferring to buy flats in neighboring Ofakim, and naturally this additionally impacts the condo transactions which might be carried out in Beersheva.”
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In Petah Tikva, similar to in Ashkelon and Beersheva, there was a painful fall in new condo gross sales of 51%, whereas the variety of second-hand flats bought truly elevated by 5%. A number of actual property professionals instructed “Globes” that they had problem discovering a concrete cause for the drop in gross sales of latest flats within the metropolis. In contrast to Ashkelon, there was no decline in development begins within the metropolis both, from the tip of June 2024 to the tip of June 2025, the availability of latest flats within the metropolis elevated by 50% to a document of two,631 new unsold flats. Solely in Haifa did the availability enhance by extra..
“Over the previous few years, Petah Tikva has emerged as a preferred different in Gush Dan for younger {couples} who should buy flats at affordable costs,” says a well known actual property skilled, including, “It is vitally probably that value ranges within the metropolis have risen past what lots of them can afford at present, and they’re turning to buy cheaper flats in Rosh Ha’ayin and in city renewal initiatives in Or Yehuda, for instance.”
“Individuals are ready for the huge advertising and marketing within the Sirkin space, which can even be accompanied by extra engaging costs,” mentioned one other supply. A technique or one other, the brand new flats market in Petah Tikva appears to be in a nasty method.
Costs: No correlation to the variety of offers
One other situation “Globes” examined is whether or not there’s a correlation between the extent of decline within the variety of offers and the autumn in residence costs within the space. This was carried out by evaluating common costs of four-room flats bought within the second quarter of 2025 to costs of four-room flats bought within the second quarter of 2024.
There was no correlation discovered. In Petah Tikva and Ashkelon, slight will increase have been discovered within the common condo costs bought within the second quarter of this 12 months whereas in distinction, in Netanya, the place there was a slight enhance within the variety of offers, and in Rishon LeZion and Haifa, the place the autumn within the variety of offers was rather more reasonable than the three cities examined, value declines have been greater.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on August 31, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025. .
