Africa Israel Residences increased apartment sales pace, despite market slowdown

Despite the slowdown in the residential real estate sector, Africa Israel Residences managed to sell more housing units in the quarter than it sold in the corresponding quarter last year — 71 compared to 63. The monetary volume of sales transactions also rose to 248 million shekels compared to 192 million shekels. Compared to the previous quarter, the first of 2026, this is a slight decrease in the number of units sold, as the company sold 73 units then.

66% of the gap in sales proceeds compared to the corresponding quarter — 37 million shekels out of 56 million shekels — comes from the sale of three units in the luxury project DOU TLV, which the company is building near Kikar HaMedina. In the project, whose construction is expected to be completed next year, there are 510 units for marketing, of which 372 units were sold by the end of June. Of these, three were sold in the second quarter and nine in the first — a total of 12 units in the first half of 2026. This is while during all of 2025, Africa Israel Residences sold 13 units in the project, four of which were in the second quarter.

Beyond the change in the pace of sales, the last apartments sold in the project are more expensive. While the average price of apartments sold in the project in 2025 was 8.1 million shekels, the average price of apartments sold in it in the first quarter of this year was 10.5 million shekels, and in the second quarter it reached 12.3 million shekels. The average price of all 12 units sold in the project in the first half consequently reached 11 million shekels.

Out of total sales, Africa Israel Residences' prominent projects were in Netanya, where it sold 14 units between April and June, following 42 units in the first quarter. In projects in Nesher and Haifa, the company sold 28 units between April and June, compared to 13 in the previous quarter. The price level in its other projects is much lower than that in DOU in Tel Aviv. The projects are spread between the Haifa area, Jerusalem, Netanya, Petah Tikva, and Givat Shmuel, and the average price for each unit sold in them during the quarter stood at 2.6 million shekels.

The company, which has been managed since March last year by Ronit Ashed Levi, recognizes revenues from apartment sales according to the progress in the pace of execution and not according to the date of sale. Therefore, sales data differs from revenue data from their sale. In the second quarter, Africa Israel Residences recorded revenues of 199 million shekels, an improvement of 8% compared to their volume in the corresponding quarter last year. Net profit attributable to shareholders rose by 14% to 24 million shekels.

Africa Israel Residences, controlled by the Lapidot Capital group of Yaakov Luxenburg (50.8%), is traded at a value of 2.6 billion shekels. Its stock has fallen by 26% since the beginning of the year, against the backdrop of the slowdown in the residential real estate market, compared to a 17% decline recorded by the TA-Construction index in which it is included.