At an average price of NIS 2.7 million per apartment: the deals moving the frozen market

Since the beginning of 2026, long-term rental funds have purchased approximately 712 apartments worth NIS 1.6 billion, at an average price of NIS 2.6 million per apartment, against the backdrop of a freeze in the housing market and a stock of about 86,000 unsold apartments held by contractors. The deals reflect discounts of 10%-20% off market prices.

Against the backdrop of a freeze in the housing market and the accumulation of a stock of about 86,000 unsold apartments held by contractors, long-term rental funds are purchasing apartment blocks at a discount. A Globes investigation reveals that since the beginning of 2026, at least 15 deals have been signed for the sale of 712 apartments totaling approximately NIS 1.6 billion, at an average price of about NIS 2.6 million per apartment. The latest deal involved the purchase of 80 apartments by Azorim Living from Zvi Tzarfati in the area for about NIS 198 million, at a discount of about 15%. The most active fund is Aviv Residences, which purchased 248 apartments, followed by Megurit, which purchased nearly 200 apartments. The CEO of Rent It, Sharon Toussieh-Cohen, stated that the freeze stems from expectations of an interest rate cut and the geopolitical situation, and that the funds receive discounts of 10%-20%. Megurit Chairman Erez Rozenbuch noted that the main change is a shift to purchasing apartments with immediate occupancy. Despite the volumes, this represents a small portion of contractors' inventory, and the funds themselves emphasize that the inquiries are far from fire sales.