A recent study from Reichman University reveals that 38.7% of new home purchases in Israel last year included financial benefits, equivalent to an average discount of 380,000 shekels on a 3 million shekel apartment. These benefits, often creative, mask significant discounts behind high listed prices. However, the Central Bureau of Statistics continues to overlook these discounts, skewing official price indices. The Israeli real estate market is under pressure, with developers facing large inventories and declining demand. While average discounts are 12.7% on 38% of transactions, they translate to a weighted reduction of only 4.8% across the market. This situation highlights the need for increased transparency and regulation to avoid misleading financing practices. Experts warn that price drops could lead to bankruptcies in the construction sector, although some believe the market could recover after a correction.
