In Israel, 84,000 unsold apartments: housing market continues to slow

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At the end of April 2026, Israel’s housing market had around 84,000 unsold new-build apartments — one of the highest figures on record. The number of transactions fell by 15.4% over the quarter and by 11% year-on-year, according to i24NEWS, citing data from the Central Bureau of Statistics.

New-build apartment sales in Israel in 2025

A previous record was recorded at the end of December 2025, when the number of unsold new apartments reached 86,090, or 83,340 after seasonal adjustment. It was estimated that clearing the accumulated stock would take around 29.2 months. Analysts at the Central Bureau of Statistics noted that since April 2022, this housing stock had increased by an average of 1.5% per month.

Among major cities, Jerusalem ranked highest in terms of unsold inventory, with around 10,230 units on the market. It was followed by Tel Aviv–Yafo (9,710) and Bat Yam.

In 2025, around 90,690 apartments were sold in Israel — 11.9% fewer than in 2024 but 26.9% more than in 2023. New-build apartments accounted for 37.5% of all transactions, or about 34,030 units. New construction sales fell by 25.5% over the year. Nearly one-third of deals — 10,160 apartments — were completed under government subsidy programs. The second-hand market proved more stable, with around 56,660 apartments sold, only 1% lower than in 2024.

Housing market transaction trends in 2026

Between February and April 2026, 20,610 apartments were sold in Israel. This is 15.4% lower than in the previous quarter and 11% lower year-on-year. The sharpest slowdown was recorded in the second-hand housing segment, where sales fell by 17.7% over the quarter and by 13% annually.

A significant share of transactions came from the Central and Southern districts, accounting for 26% and 21% of all housing activity respectively. At the same time, the Tel Aviv market recorded one of the steepest declines in the country, with sales of both new and existing apartments falling by around 27% over the quarter.

Where housing sales are weakest in Israel

By the end of April, Israeli developers were left with nearly 84,000 unsold apartments. At the current pace of sales, it would take around 29.5 months to clear this stock. The largest concentration is in the Tel Aviv district, with around 25,300 units — nearly 30% of the national total. The Central district follows with 20,600 units.

At city level, Jerusalem recorded the highest number of unsold units, with 10,133 apartments waiting for buyers. Tel Aviv had 9,960 unsold units.

Restrictions in Israel’s new-build market

In Israel, transactions are recorded as completed sales even when only a small portion of the payment is made upfront. A previously common model allowed buyers to pay around 20% at signing and defer the remaining balance without indexation. In practice, developers absorbed part of the cost linked to inflation or construction indices, which was attractive to buyers.

The Bank of Israel considered such structures risky for households and the financial system. As a result, in March 2025, restrictions were introduced on the use of the 20/80 model and similar financing schemes. This reduced the range of sales-stimulation tools available to developers and made sales reporting more reflective of underlying demand.

Conclusion

Analysts at International Investment note that housing supply in Israel continues to grow faster than demand is recovering. Developers face limits on using incentive schemes that previously helped sustain sales and soften the downturn. At the same time, macroeconomic pressure — high borrowing costs, uncertainty, and elevated property prices — is making buyers more cautious.

Against this backdrop, some investors and private buyers are reassessing their real estate exposure. Interest is shifting toward markets with lower entry thresholds and potentially higher yields. One such destination is Georgia: in Tbilisi, Israeli buyers are already among the largest groups of foreign investors, while in Batumi they account for a significant share of the market.