Real Estate Market in Israel: Weekly Review End of September 2026

At the end of September 2026, the Israeli real estate market is sending mixed signals: falling rates, a rebound in lending, rising new property transactions, but a significant drop in public land supply. Whether you are buying from abroad or already living in Israel, here is a sourced summary of the key developments.

Key Takeaways of the Week

Three main trends stand out: the State is putting significantly fewer plots up for auction, which will impact the future supply of new properties; the Bank of Israel has lowered its key interest rate to 3.25% while credit continues to grow; finally, prices are stable to slightly declining, with strong regional differences and sellers more open to negotiation.

Land Supply: The Warning Sign from Tenders

According to data from the Israel Land Authority published by Globes, 35,143 housing units have been put up for tender since January 2026, compared to 91,993 in 2025—a drop of about 62%. The reasons: the war, a disputed interim leadership, and a weak market.

After the Covid slump, prices surged by around 30% in 2021-2022, Globes notes. Only 70 out of 422 tenders in preparation are open for bids. We detail this risk in our analysis on the drop in land tenders.

Credit and Rates: Heavier Financing, Lower Cost

According to the Association of Credit Advisors, via Nadlan Center, the increase is mainly due to larger loans, much more than the number of applications. Our article on the rise in mortgage volume details these figures, and the one dedicated to the impact of the 3.25% rate on monthly payments shows what this changes in practice. To simulate your own case, use our financing simulator.

Prices and Transactions: A Two-Speed Market

According to the same review, housing prices rose by 0.2% over one month but fell by 1.2% over one year, with the Central district at –3.2% while the North and Jerusalem gained about 1%. The Times of Israel, based on data from the CBS and the Ministry of Finance, reports 8,757 sales in June, up 50% year-on-year, including 3,593 new homes (+84%).

According to a major listing portal cited by Globes, one in four private listings lowers its price. In the luxury segment, a penthouse in an urban renewal tower in Ramat Gan sold for 9 M₪ compared to the 11.9 M₪ asking price, according to Globes. In the South, the deputy chief economist of the Ministry of Finance estimates the real stock of unsold new homes at 11,457 units, including cancellations.

For buyers from abroad, the shekel has appreciated by about 10% against the dollar in one year, according to the Times of Israel. A historical reminder from Globes, citing the CBS: between 1997 and 2007, prices fell by 24.5% in real terms.

Urban Renewal and Major Projects: Where the City of Tomorrow Is Being Built

According to CBS cited by Globes, around 9,600 housing units were started as part of urban renewal in the first half of 2026, a +5% increase. Tel Aviv remains in the lead, followed by Petah Tikva and Bat Yam, while Ramat Gan drops to 9th place. Our ranking of cities in urban renewal details these differences.

Ramat Gan is moving forward with ten towers up to 100 floors in the Bursa district, and the tallest tower in the country opens in Givatayim, according to Globes. In Lod and Ramat Hasharon, demolition-reconstruction projects are progressing, and the supply of senior residences remains low, according to Nadlan Center.

Other Signals to Watch

In Jerusalem, the Neve Yaakov neighborhood, served by the tramway, saw its prices rise by 3.5% in the first half of the year, according to Nadlan Center. In Haifa, an urban renewal project of 715 housing units is reviving Bat Galim, according to Globes. Buyer clubs are announcing discounts of up to about 12.5%, which should be checked against actual prices. On the legal side, the courts remind that only the purpose stated in the building permit is valid. Amendments regarding standards and the mamad will be reviewed in October. Finally, the average rent reached 5,063 ₪ in August (+3.7% over one year), according to WeCheck.

What This Means for Your Purchase Project

The current window combines falling rates and sellers open to negotiation, with a risk of pressure on new supply in the medium term. The purchase tax (Mas Rechisha) depends on your status, amount to be checked according to your profile, and the 18% VAT is included in new property prices. Closing costs generally represent 10 to 13% of the price, depending on the items included.

Before signing, make sure you are supported by these three essential experts: lawyer, broker, and architect. Browse our 300+ new projects across Israel in the catalogue, then request a personalized assessment, with no obligation.

Sources

- Globes, tenders
- Globes, urban renewal
- Nadlan Center, credit
- Bank of Israel
- Times of Israel
- Globes, Southern District
- Globes, listings
- Nadlan Center, Neve Yaakov
- Globes, Ramat Gan
- Globes, Givatayim
- Globes, penthouse
- Globes, Haifa
- Globes, buyers' clubs
- Nadlan Center, case law
- Nadlan Center, standards
- Nadlan Center, rents
- Nadlan Center, seniors
- Nadlan Center, Lod
- Nadlan Center, Ramat Hasharon
- Globes, fact-check