Israel’s housing market is in a slump. October 2025 was one of the lowest months in terms of the number of deals in recent decades, according to the Chief Economist’s data on the housing market published today.
Only 4,518 apartments were sold in October, a historically low figure. In the past 15 years, there have been only several months in which fewer apartments were purchased. In October 2011, when the public was waiting for the implementation of the conclusion of Trajtenberg Committee’s conclusions of the Trajtenberg Committee, which had been set up to lower the cost of living, following social protests; in April 2020, when the country was under lockdown during the Covid pandemic; and in October 2023, when the war broke out.
This shows that even if part of the low number of purchases is explained by the holidays that fell in the first half of October, the volume was still particularly low compared with many other holiday months celebrated in recent years.
Real estate developers continue to endure sharp declines In sales. Developers sales in October totaled 1,917 apartments, including discounted apartments sold in financing programs. This is a 14% decrease compared with October 2024.
Focusing on homes sold on the free market, thus not including homes sold in government subsidized programs, the crisis is even more evident, In October only 1,038 new apartments were sold on the free market, meaning that 46% of all sales in October of new apartments were in government-subsidized lottery programs. This figure also indicates a severe downturn in the market and that buyers are not even coming to sales offices.
The most prominent region in the sales decline of developers
September 2025 saw a 29% decrease in the total number of new apartments sold and a 42% decrease in sales on the free market.
The southern region is the most prominent region in the decline in sales by home developers. According to the chief economist, of the eight southern cities that are prominent in their real estate markets, only Kiryat Gat recorded an increase in the number of deals in January-October 2025, compared with the corresponding period of 2024.
Netivot, which leads sales by developers in 2025, has recorded a 2% decrease in sales, with 970 apartments sold there. The other six cities that are notable in this region recorded a much sharper decline, with Beersheva standing out. 361 new apartments have been sold on the free market since the beginning of the year in Beersheva, compared with 844, down 60%, from the corresponding period last year.
Sales in Ashkelon have also fallen sharply, with 430 apartments sold this year, down 44% from the same period last year, while Ofakim, recorded a fall of about 30% and in the first ten months of the year 560 new apartments were sold there on the free market.
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The survey also found that developers continue to provide buyers with financing benefits, but in reduced amounts, The prevalence of these benefits in October reached 26% of transactions in which the delivery time of the apartments is up to a year, while in March they comprised 50% of these transactions. The reason for the decrease is the restrictions imposed by the Bank of Israel.
Published by Globes, Israel business news – en.globes.co.il – on December 10, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
