Israel Q3 2026 Real Estate Sales Drop 5.7% as Kiryat Gat Surges
Israel real estate sales dropped 5.7% in Q3 2026 to 21,750 apartments, with Kiryat Gat surging and Tel Aviv plummeting, according to the Central Bureau of Statistics.
Israel's real estate market saw approximately 21,750 apartments sold between July and September 2026, marking a 5.7% decline compared to the previous quarter (April–June), according to data released by the Central Bureau of Statistics.
After seasonal adjustment, the decline stands at 6.8%. Compared to the same quarter in 2025, total sales dropped by 7.3%, although seasonally adjusted figures showed a 2.6% increase.
New apartments accounted for 42.3% of total sales, totaling 9,190 units, with over a third sold under government subsidy programs. New apartment sales fell by 7.2% from the previous quarter but rose year-over-year. Meanwhile, second-hand apartments made up 57.7% of the market with roughly 12,560 transactions, reflecting decreases from both the previous quarter and the same period last year.
Surge in Kiryat Gat and Slump in Tel Aviv
Regionally, the South district led overall sales with 23%, followed closely by the Central district at 22.1%, which dominated the second-hand market. At the municipal level, Kiryat Gat surged by 121.5% in new apartment sales, reaching 1,030 units, largely driven by government-subsidized programs. Increases were also recorded in Haifa, Petah Tikva, Acre, and Beit Shemesh.
Conversely, Tel Aviv-Yafo experienced a sharp 59.6% drop in new apartment sales, selling 537 units compared to 1,328 in the previous quarter. Declines were also reported in Ashdod and Jerusalem. In the second-hand sector, Jerusalem led with 829 transactions, followed by Haifa and Beersheba.
Record Inventory Levels
Alongside the slowdown in transactions, the unsold inventory of new apartments reached a record high of approximately 85,080 units by the end of September 2026. The estimated months of supply required to clear this inventory stands at 25.8 months. The Tel Aviv district concentrates around 31.2% of this total stock, with Jerusalem, Tel Aviv, Kiryat Gat, and Lod leading the cities with the highest unsold inventories.
