A tower with 109 empty apartments explains why apartment prices are not falling
Almost half a year since the occupancy permit for "Migdalei HaSolelim" in Tel Aviv, and the developers Mivne and Tidhar are not blinking - and are not lowering prices. With enough cash in the bank and a debt ratio of less than 50% of the balance sheet, these companies know that the banks will not be in a hurry to call, and perhaps in the meantime the market will change direction.
Why do developers who show tens of percent profit on paper from the sale of an apartment not prefer to cut their dreams a little to sell much more - certainly in the current difficult times? Without disappointing too much those who are waiting anxiously for the price collapse that might still come, one should know that there are quite a few developers here who can wait patiently for now.
A clear example can be found in the updated data of "Migdalei HaSolelim" at the entrance to Tel Aviv. Two towers that include 33 floors and 360 apartments have become, against their will, one of the most distinct symbols of sales challenges in the current period.
The numbers can explain the developers' "indifference"
At the beginning of March, a completion certificate was received for the project of the companies Mivne (75%) and Tidhar (25%). 251 apartments were sold, while 109 are still waiting for a buyer. Even out of those sold, 47 were purchased last year as a single block by the rental housing fund Magurit, a deal responsible for more than half of the sales of 2025.
But, and this is the important but, considering that half a year will soon pass since the occupancy permit, the developers - Mivne and Tidhar - are not blinking. Aggressive marketing and financing campaigns yes, lowering list prices not really. The result: in the second quarter only two apartments were sold, compared to 4 in the first quarter and a quarterly pace of 23 last year. Since then, one more apartment has been sold - 135.5 sqm, at a price of 5.2 million shekels (38.4 thousand shekels per sqm), which is identical to the price per sqm in transactions made in the quarter and a slight increase from 2025 prices.
Project economics
For decades, the company Mivne (formerly Mivne Taasiya) leased the land at the corner of HaShalom and HaSolelim from the Tel Aviv municipality. In 2019, it signed a new contract for 343 million shekels to build residential and office towers. As of the end of June 2026, the total cost of land, development, construction, and financing of the residential tower stood at 844 million shekels. There remained a relatively negligible expense of 25 million shekels on construction finishes, taxes, and fees. This is a huge amount, more than 2.4 million shekels on average for each apartment, but the revenues so far - from the sale of 67% of the apartments - have already exceeded the expenses quite easily. 251 apartments have been sold to date for a total of 974 million shekels, resulting in more than 100 million shekels of gross profit.
That is, the developers have already brought the money home. Mivne and Tidhar still report an expected gross profit of 40% from Migdalei HaSolelim - even though a third of the building is not sold. Mivne also has a cash balance of 1.7 billion shekels in the bank and a debt ratio of less than 50% of the balance sheet, which ensures that the banks will not call so quickly.
Difficulty in completing the deal?
Although 65% of the apartments were sold even before receiving the occupancy permit, the developers report that so far only 206 apartments have actually been handed over to the approved buyers. Difficulty in completing the deal? Not if you ask the developers. According to Uzi Levi, CEO of Mivne, "We called the buyers in April to take the keys, but quite a few chose to take their time. Of their own free will, without us encountering even one buyer who said he had a problem. The families prefer to receive the apartments in August before entering schools, to do a meticulous inspection with the construction company, and also to avoid management fees and Arnona in the meantime".
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