Israeli Housing Market Jumps 13% as Tel Aviv Sales Defy Expectations
Israel's housing market grew by nearly 13% from May to July, led by a surprising 22% surge in apartment sales in Tel Aviv and strong activity across peripheral cities.
Israel's housing market saw a significant rebound between May and July, with apartment sales jumping by nearly 13% compared to the previous quarter, even after adjusting for seasonal trends.
New Apartments and Developer Pressures
New apartments account for slightly over 41% of the entire market. Between May and July, approximately 10,470 apartments were sold, though about a third of these were government-subsidized. While some regional markets like Netivot face rising cancellation rates and sluggish demand, major metropolitan areas tell a different story.
Tel Aviv Surprises with Strong Growth
Surprisingly, Tel Aviv recorded a 22% surge in apartment sales during this period, defying expectations of a prolonged slump driven by high prices and low demand for older properties lacking secure rooms (Mamad). Meanwhile, cities like Or Yehuda, Ashdod, and Kiryat Gat posted strong performance figures among municipalities selling 300 or more units.
"Selling more than 350 apartments a month in Tel Aviv indicates that the market is far from completely frozen and even points to improving data."
Periphery Leads While Some Cities Lag
Peripheral hubs such as Kiryat Gat, Ashkelon, and Ofakim continue to absorb a large share of transactional volume. Conversely, Jerusalem was the only major city to record a decline, alongside weaknesses in Ramla, Rishon LeZion, and Netanya, where foreign buyer dynamics may have been impacted by currency fluctuations.
