Apartment sales in Israel plummet, subsidized financing schemes reach record high

Apartment sales in Israel fell sharply in September 2026: the total number of transactions dropped by 10% compared to last year, and new home sales fell by 20.6%. The share of subsidized financing schemes reached 45% — the highest since March 2025. Developers' net cash flow fell by 45%.

Apartment sales in Israel fell sharply in September 2026, and the share of transactions with subsidized financing schemes reached a high not seen since March 2025. According to a report by the chief economist of the Ministry of Finance, the total number of transactions decreased by 10% compared to September 2025 and by 17% relative to August 2026. New home sales fell by 20.6% to 2,669 units, of which about 870 were sold under government programs. In the secondary market, 3,577 transactions were recorded — 16% fewer than a year ago. The sharpest decline was in the Tel Aviv area — 34%. The share of transactions with deferred payment (20% now, the rest upon receiving the apartment) rose from 30% in August to 45% in September. Developers' net cash flow after expenses fell by 45% to 338 million shekels.