Real estate company financials reveal housing market trends

High interest rates, restrictions on contractors’ financing offers to buyers, and the continuing war, all contributed to a decline of about a quarter in the number of homes sold by nine prominent residential real estate developers listed on the Tel Aviv Stock Exchange in the first nine months of this year. In that period, Y.H. Dimri Construction and Development (TASE: DIMRI), Israel Canada (TASE: ISCN), Azorim Investment Development and Construction Co. (TASE: AZRM), Africa Israel Residences (TASE: AFRE), Prashkovsky Investments and Construction (TASE: PRSK), Amram Avraham Construction Company (TASE: AMRM), Kvutzat Acro (TASE: ACRO), ZMH Hammerman, and Effi Capital Nadlan (TASE: EFCP), sold an aggregate 3,500 homes, 24% fewer than in the corresponding period of 2024.

In the third quarter, these companies sold 1,254 homes, 28% fewer than in the corresponding quarter.

The steep decline in the number of homes sold by the developers found expression in the prices paid by the buyers. The average price of a home sold in the first nine months of this year fell 9% to NIS 2.3 million from NIS 2.53 million in the corresponding period of last year, a difference of over NIS 200,000.

The average price is, however, misleading, because there are differences in the mix of homes sold. The price of a home is affected by the location of the project and its type. Projects under the government’s Buyer Price scheme are lower because of the subsidized price of the land, and are presumably less profitable, although faster selling.

The financial statements of Prashkovsky can be cited as an example. The company sold 330 homes between January and September this year, 168% more than in the corresponding period of 2024, but this stemmed from massive sales in the company’s Buyer Price project in Haifa, in which it sold 238 apartments. That project also led to a slump in the average price of the company’s homes by 26% to NIS 2 million.

We also checked the number of homes sold by the construction companies since the beginning of October when the agreement for a ceasefire and return of the Israeli hostages was reached with Hamas. In the two months since then, the companies have sold over 700 housing units, which is similar to the rate of sales for the third quarter.

The company with the most sales in the first nine months was Amram Avraham, which sold 1,035 units in the period, 30% fewer than in the corresponding period last year. The company’s average sales price was NIS 1.6 million, similar to that in the corresponding period. Here too, the figures stem from progress in a Buyer Price project.

Almost NIS 9 million for Sde Dov apartment

On the other hand, Israel Canada, which builds luxury apartments in Gush Dan, had an average selling price of NIS 6.6 million, 4% more than in the corresponding period, and the highest in the sample. The number of apartments sold by Israel Canda, however, fell by 30% to 200, a quarter of them at Sde Dov, the site of the former airport in north Tel Aviv, where the average price of an apartment was NIS 8.9 million. In October-November the company sold a further 137 apartments, putting it in second place among the developers surveyed.

Y.H. Dimri, the largest residential real estate developer by market cap (NIS 8.6 billion) sold 536 units in the first nine months of this year, putting it in third place behind Amram Avraham and Effi Capital. Its average selling price rose 11% to NIS 2.6 million. In October-November it sold 153 units, more than any other developer.

The sharpest decline in the number of units sold was at Kvutzat Acro, which like Israel Canda operates in luxury apartments in Tel Aviv and the surrounding area. Sales volume fell by 77% to 84 units, which was largely due to high sales in a Buyer Price project in Yafo (Jaffa) last year. At the same time, the average price per unit rose 29% to NIS 4.9 million year-on-year.

“Without financing offers the decline would have been steeper

Sigal Issachar, head of real estate and of rating activity at rating agency Midroog says of the developers’ figures, “We are seeing a slowdown in sales that has affected the developers since the beginning of the year. The trend arises from the high interest rate together with high prices that weigh on buyers’ purchasing power. Were it not for the developers’ financing offers, the decline might have been even sharper. In the end, this is a situation that erodes the developers’ results.”

Ziv Ein Eli, real estate analyst at IBI Investment House says by way of explanation of what happened to the sector in the first nine months of this year: “You have to remember where we came from. 2024 was a peak year for home sales, but since the beginning of this year several things have happened that have affected the sector. I would mention also that at the end of last year homebuyers sought to bring purchases forward to beat the rise in the rate of VAT (at the start of 2025), and so there was a rush of home purchases at the end of the year.”

That rush of purchases, Ein Eli explains, had an adverse effect on sales in the first quarter of this year. “After that, there were the restrictions that the Bank of Israel imposed in March on the financing offers. That caused a slowdown in sales, as the developers tried to understand how to cope with the restrictions. At the end of the second quarter came the war with Iran, during which sales sites and offices were closed. In the third quarter we do see a recovery in comparison with the first two quarters.”

Optimism for 2026

As far as the future is concerned, senior executives in the sector are trying to stay optimistic. Yaacov Atrakchi, controlling shareholder and CEO of Aura Investments (TASE: AURA), one of the largest companies in the sector, with a market cap of NIS 6.3 billion, says, “The third quarter was excellent, and we saw an improvement in sales during it. In general, this year we have seen a trend of fewer homes being bought in expensive areas such as Greater Tel Aviv. The market has been impacted by the fact that there are fewer investment buyers, because they have alternatives in the stock market. But outside Gush Dan we are seeing good sales. We have sold well in Netanya, Ofakim, and Lod, and that in a year that was relatively tough.”

Aura, which does not provide enough data to calculate the average price per unit (and therefore was not included in the calculations above) sold over 800 units in the first nine months of this year, 22% more than in the corresponding period last year, mainly thanks to special offers. Next year, Atrakchi says “things will look much better in the residential market.”

Published by Globes, Israel business news – en.globes.co.il – on December 2, 2025.

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