For the previous 4 consecutive months the house worth index has fallen by an accumulative 1.3%. This can be a main decline led by the Tel Aviv District, which has fallen 4.3% since February.
The variety of offers accomplished within the first half of 2025 was down 14% in contrast with the primary half of 2024. The decline in purchases of latest residences, was down 28%, whereas in second-hand residences the decline was solely 0.5%. Nonetheless, an investigation by “Globes” discovered that there’s a excessive variation between areas by way of the decline in house purchases over the previous 12 months.
Probably the most notable decline: new residences
Simply as the worth declines didn’t have an effect on the nation equally, the decline within the variety of offers was not distributed equally and in sure cities. The cities that stand out with distinctive declines within the first half of 2025 in contrast with the primary half of 2024 are Ashkelon (down 30%), Petah Tikva (24%), and Beersheva (18%).
Ashkelon has been one of many cities in recent times with the very best variety of new residences constructed and offered, however its decline in new house gross sales didn’t start this 12 months. In 2021, it led the gross sales chart for brand spanking new residences, however gross sales step by step weakened and the town fell from its main place within the following years. The provision of unsold new residences within the metropolis has additionally remained roughly on the identical degree for over a 12 months, which exhibits that the development and gross sales charges of latest residences have reached a type of stability, though gross sales of latest residences have fallen by two-thirds.
A part of this was offset by a rise within the buy of second-hand residences, however general the top result’s a really giant fall within the buy of residences within the metropolis.
Beersheva has additionally seen a significant fall in house purchases, relative to the primary half of 2024, and once more the primary cause for that is the brand new houses market. The variety of offers within the metropolis fell 18%, however whereas the autumn in second-hand residences was 5%, new houses gross sales fell 52%.
Shai Stern of RE/MAX – Plus actual property company in Beersheva says, “We really feel it properly and the numbers do not lie. In the end, I feel the secret is the excessive rate of interest.” He believes that there are property house owners available in the market right this moment who’re keen to be versatile on house costs, whereas then again there are buyers who really feel that that is the time to search out alternatives, which is supporting the Beersheva market a little bit.
On new residences, Stern says he agrees with Beersheva Mayor Rubik Danilovitz, who complains about tax advantages that residents of surrounding cities obtain, which suggests individuals desire to buy new residences or land tons in close by Ofakim, and reduces demand for residences in Beersheva. “In line with the info we’ve got, a whole lot of households from Beersheva are preferring to buy residences in neighboring Ofakim, and naturally this additionally impacts the house transactions which can be carried out in Beersheva.”
RELATED ARTICLES
Israeli actual property turns into marketplace for rich
July CPI rises 0.4% as dwelling costs proceed to fall
Buyers shunning Israel’s houses market
Tel Aviv dwelling costs falling sharply
In Petah Tikva, identical to in Ashkelon and Beersheva, there was a painful fall in new house gross sales of 51%, whereas the variety of second-hand residences bought truly elevated by 5%. A number of actual property professionals advised “Globes” that they had issue discovering a concrete cause for the drop in gross sales of latest residences within the metropolis. Not like Ashkelon, there was no decline in building begins within the metropolis both, from the top of June 2024 to the top of June 2025, the availability of latest residences within the metropolis elevated by 50% to a document of two,631 new unsold residences. Solely in Haifa did the availability improve by extra..
“Over the previous few years, Petah Tikva has emerged as a preferred various in Gush Dan for younger {couples} who should purchase residences at affordable costs,” says a widely known actual property skilled, including, “It is vitally doubtless that worth ranges within the metropolis have risen past what lots of them can afford right this moment, and they’re turning to buy cheaper residences in Rosh Ha’ayin and in city renewal tasks in Or Yehuda, for instance.”
“Individuals are ready for the large advertising and marketing within the Sirkin space, which can even be accompanied by extra enticing costs,” stated one other supply. A method or one other, the brand new residences market in Petah Tikva appears to be in a nasty means.
Costs: No correlation to the variety of offers
One other challenge “Globes” examined is whether or not there’s a correlation between the extent of decline within the variety of offers and the autumn in dwelling costs within the space. This was carried out by evaluating common costs of four-room residences bought within the second quarter of 2025 to costs of four-room residences bought within the second quarter of 2024.
There was no correlation discovered. In Petah Tikva and Ashkelon, slight will increase have been discovered within the common house costs bought within the second quarter of this 12 months whereas in distinction, in Netanya, the place there was a slight improve within the variety of offers, and in Rishon LeZion and Haifa, the place the autumn within the variety of offers was far more average than the three cities examined, worth declines have been greater.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on August 31, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025. .
