Dimri struggles with sales in Tel Aviv's luxury district and forecasts price cuts
Y.H. Dimri released its second-quarter 2026 reports, highlighting challenges in its Sde Dov flagship project. Only 40 out of 455 units have been sold to date, leading the company to lower its price-per-square-meter forecast.
The second-quarter reports from real estate firm Y.H. Dimri indicate a sharp erosion in profitability. Net profit for the first half of 2026 was cut by more than half compared to the same period last year. While the company recorded an increase in total sales volume (397 apartments compared to 335), it noted that this growth was driven by subsidized units under the 'Mechir Lemishtaken' program in Kiryat Bialik. Conversely, the flagship project in Sde Dov saw only 10 units sold during the first half of the year, and the company expects prices per square meter to decrease in future sales.
Y.H. Dimri currently manages 23 projects nationwide, comprising 5,086 housing units (the company's share is 4,661). To date, 1,523 apartments have been sold. Key sales centers included Ashkelon (144 units), Ofakim (72), Kiryat Bialik (63), and Kiryat Gat (27).
Challenges in Sde Dov
The flagship Sde Dov project is struggling to gain momentum. Out of 455 marketed units, only 40 have been sold. The company has revised its price forecast: while initial units were sold at an average of 67,000 NIS per square meter, the expected average for remaining inventory is only 62,000 NIS per square meter. This data is a setback for developers who had anticipated significantly higher pricing.
Environmental Concerns
Alongside financial results, the company reported an environmental incident at the Sde Dov complex involving PFAS soil contamination, likely resulting from fire-extinguishing foam. In July 2026, the Ministry of Environmental Protection authorized the removal of contaminated soil to an approved site while allowing construction to proceed. Following additional tests in August 2026 that identified further contamination hotspots, the company is awaiting updated instructions. Y.H. Dimri estimates that the cost of soil removal will not be material to the project's overall scope, and excavation work continues as planned.
