In 2025, major public companies in Israel's residential real estate sector experienced a decline in sales, although their revenues increased due to a recovery in the construction industry. According to the National Statistics Institute, 34,000 new units were sold, marking a 25.5% decrease from 2024 but a 24% increase from 2023. A third of these sales were at subsidized prices. The unstable political and economic situation, marked by prolonged conflicts, could lead to rising housing prices and slow down construction projects, impacting companies' financial results in the coming quarters. Despite the demand for affordable housing, high prices continue to deter potential buyers. Forecasts suggest a potential 30% drop in residential real estate prices and a more than 60% decline for office spaces in high-demand areas. The Israeli real estate market appears to be heading towards a prolonged period of price decline.
