New home sales down 28% in first half of 2025

For the previous 4 consecutive months the house worth index has fallen by an accumulative 1.3%. It is a main decline led by the Tel Aviv District, which has fallen 4.3% since February.

The variety of offers accomplished within the first half of 2025 was down 14% in contrast with the primary half of 2024. The decline in purchases of latest flats, was down 28%, whereas in second-hand flats the decline was solely 0.5%. Nonetheless, an investigation by “Globes” discovered that there’s a excessive variation between areas by way of the decline in residence purchases over the previous yr.

Essentially the most notable decline: new flats

Simply as the value declines didn’t have an effect on the nation equally, the decline within the variety of offers was not distributed equally and in sure cities. The cities that stand out with distinctive declines within the first half of 2025 in contrast with the primary half of 2024 are Ashkelon (down 30%), Petah Tikva (24%), and Beersheva (18%).

Ashkelon has been one of many cities lately with the very best variety of new flats constructed and offered, however its decline in new residence gross sales didn’t start this yr. In 2021, it led the gross sales chart for brand new flats, however gross sales step by step weakened and town fell from its main place within the following years. The availability of unsold new flats within the metropolis has additionally remained roughly on the identical degree for over a yr, which reveals that the development and gross sales charges of latest flats have reached a form of steadiness, though gross sales of latest flats have fallen by two-thirds.

A part of this was offset by a rise within the buy of second-hand flats, however general the tip result’s a really massive fall within the buy of flats within the metropolis.

Beersheva has additionally seen a significant fall in residence purchases, relative to the primary half of 2024, and once more the principle cause for that is the brand new houses market. The variety of offers within the metropolis fell 18%, however whereas the autumn in second-hand flats was 5%, new houses gross sales fell 52%.

Shai Stern of RE/MAX – Plus actual property company in Beersheva says, “We really feel it effectively and the numbers do not lie. Finally, I believe the secret is the excessive rate of interest.” He believes that there are property homeowners available in the market at present who’re keen to be versatile on residence costs, whereas however there are buyers who really feel that that is the time to search out alternatives, which is supporting the Beersheva market a bit.

On new flats, Stern says he agrees with Beersheva Mayor Rubik Danilovitz, who complains about tax advantages that residents of surrounding cities obtain, which implies individuals choose to buy new flats or land tons in close by Ofakim, and reduces demand for flats in Beersheva. “Based on the info we now have, tons of of households from Beersheva are preferring to buy flats in neighboring Ofakim, and naturally this additionally impacts the residence transactions which are carried out in Beersheva.”

In Petah Tikva, identical to in Ashkelon and Beersheva, there was a painful fall in new residence gross sales of 51%, whereas the variety of second-hand flats bought truly elevated by 5%. A number of actual property professionals advised “Globes” they’d issue discovering a concrete cause for the drop in gross sales of latest flats within the metropolis. Not like Ashkelon, there was no decline in development begins within the metropolis both, from the tip of June 2024 to the tip of June 2025, the availability of latest flats within the metropolis elevated by 50% to a document of two,631 new unsold flats. Solely in Haifa did the availability improve by extra..

“Over the previous few years, Petah Tikva has emerged as a well-liked various in Gush Dan for younger {couples} who can buy flats at cheap costs,” says a widely known actual property skilled, including, “It is rather possible that worth ranges within the metropolis have risen past what lots of them can afford at present, and they’re turning to buy cheaper flats in Rosh Ha’ayin and in city renewal tasks in Or Yehuda, for instance.”

“Individuals are ready for the large advertising within the Sirkin space, which can even be accompanied by extra enticing costs,” mentioned one other supply. A technique or one other, the brand new flats market in Petah Tikva appears to be in a foul approach.

Costs: No correlation to the variety of offers

One other difficulty “Globes” examined is whether or not there’s a correlation between the extent of decline within the variety of offers and the autumn in house costs within the space. This was performed by evaluating common costs of four-room flats bought within the second quarter of 2025 to costs of four-room flats bought within the second quarter of 2024.

There was no correlation discovered. In Petah Tikva and Ashkelon, slight will increase have been discovered within the common residence costs bought within the second quarter of this yr whereas in distinction, in Netanya, the place there was a slight improve within the variety of offers, and in Rishon LeZion and Haifa, the place the autumn within the variety of offers was way more average than the three cities examined, worth declines have been greater.

Revealed by Globes, Israel enterprise information – en.globes.co.il – on August 31, 2025.

© Copyright of Globes Writer Itonut (1983) Ltd., 2025. .