An analysis of the results of the ten largest public companies in the Israeli real estate sector shows that they manage to cope with declining sales and profitability. However, this negative trend impacts their stability and credit risks. The year 2025 is shaping up to be one of the toughest for developers in decades, with a sharp drop in home sales and a continuous decline in prices in most areas. An unprecedented inventory of 83,000 unsold homes, about 15,000 of which are ready for occupancy within six months, adds pressure to the market. Despite the drop in sales and revenues, large construction companies are not experiencing financial collapses, contrary to what is often seen in such situations. In cities like Herzliya, Ramat Hasharon, Tel Aviv, and Givatayim, prices are expected to continue falling over the next five years, partly due to an oversupply caused by massive urban renewal housing construction in the Gush Dan area.
