Sharp drop in demand for apartments in the south: sales in Ofakim and Netivot are collapsing

A decline of tens of percent in sales of new apartments in Netivot and Ofakim, alongside a wave of deal cancellations. While the purchase market freezes, the rental market in the area continues to thrive. The main reason for cancellations: buyers who signed deals under favorable terms discover they cannot meet payments.

The real estate market in southern Israel is undergoing a dramatic shift: after two years in which Netivot and Ofakim led demand tables, recent months have seen a tens-of-percent drop in new apartment sales. According to data, in the first half of 2026, new apartment sales in the entire southern region fell by 25%. In Netivot, sales dropped by 30%, in Ofakim transactions fell by 52%, and in Beersheba, sales volume collapsed by 74% within two years. Alongside the decline in sales, a wave of deal cancellations is accumulating at an alarming rate. The main reason: buyers who previously signed deals under favorable terms and almost no risk discover they cannot meet payments or that the deal is no longer worthwhile, and cancel it with relative ease. In contrast, the rental market in southern cities continues to thrive, in stark contrast to the stagnation in purchases. The stagnation is also influenced by political uncertainty ahead of the elections. Industry estimates suggest the market may return to activity towards the end of the year or early next year, subject to interest rate cuts, economic stability, and governmental continuity.