Apartment sales data for the second quarter show an industry in total chaos

Apartment sales among public companies during the second quarter of 2026 reflect a volatile market. Some companies are seeing a jump of hundreds of percent, while others are seeing a drop of tens of percent. These jumps testify primarily to the absence of the most important thing this industry needs right now — stability. If in normal years we were accustomed to relative stability, now it seems that the market is rising and falling uncontrollably, with the influencing factors being mainly point-of-sale promotions for one project or another.

Companies know this well. The difficulty in selling leads them to aggressive promotions, which do not always benefit them. But when they have to choose between selling many apartments at once as part of a promotion or not selling at all, most companies choose aggressive sales. The number of apartments sold has become the primary concern for companies, as their ability to repay huge bank loans depends on these sales.

Examples of volatile sales growth

One of the prominent examples is the Tidhar company, which recently went public. Sales in the second quarter reached 279 apartments compared to only 15 in the first, resulting in a 1,760% jump. The reason was the Bein HaSderot project in Tel Aviv, where sales surged following a promotion with the Hever club. A similar trend is seen at Shikun & Binui, where sales jumped 850% (from 33 to 314 apartments), partly due to promotional incentives for buyers.

Companies like Aura also rely on periodic promotions with the Hever club to boost sales, reporting hundreds of units sold within these campaigns. However, it is essential to distinguish between projects: sales in high-value locations like Sde Dov carry significantly more weight in financial reports than those in peripheral areas.

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The issue of transaction cancellations

Alongside the number of apartments sold, reports of transaction cancellations have appeared with greater frequency. According to Ministry of Finance data, out of all apartments sold in 2023–2025, when financing promotions reached high rates (up to 85% of total sales), only 40% have been delivered so far. Since cancellations often occur closer to the delivery date, the full picture will only emerge in a year or two.

The Securities Authority issued a directive in January requiring companies to disclose information regarding transaction cancellations. As there is currently no uniform standard, the Authority plans to publish a guide soon. While reporting is not yet mandatory, the Authority will scrutinize every company requesting to go public.

Financing incentives

Despite Bank of Israel directives, companies continue to offer various financing benefits to maintain sales:

1. 20/80 promotions: 20% payment upon signing and the balance at delivery.

2. 5/95 promotions: only 5% payment at the time of signing.

3. Contractor loans: the developer pays the interest on the buyer's loan until occupancy.

4. Subsidizing mortgage interest and building input index costs.

Unlike in the past, companies are actively seeking ways to lower prices without declaring a formal price reduction. Presale promotions have become vital for maximizing sales while maintaining price integrity.