Real Estate Market in Israel: Review of Election Week, Late October 2026

The week of October 25, 2026, will be remembered for the legislative elections on October 27. For the real estate market, they did not bring the clarity that was hoped for: no bloc appears to have a majority, and the stock market reacted sharply. Meanwhile, planning authorities continued to approve thousands of housing units, and credit data shows households under pressure. Here is a useful summary for buyers abroad as well as Israelis already in Israel.

Key Figures of the Week

Elections: Uncertainty Sets In

According to exit polls published by Israel Hayom, neither the outgoing coalition bloc nor the opposition bloc reaches 61 seats. Official results are expected on November 4, and the president then has until November 11 to task someone with forming a government. The day after the vote, construction and real estate stocks dropped: TheMarker reports an 8% decrease in the construction index. Nadlan Center attributes this decline to fears of delayed budgets and reforms.

Party platforms promise a lot: rental housing, benefits for reservists, acceleration of urban renewal. Our article on elections and housing compares the proposals and what they could change.

Credit: Households Under Pressure

After three months of decline, mortgage payment arrears rose again to ₪4.23 billion in September. The Bank of Israel attributes this to less intensive handling of distressed cases. The average loan amount remains high: ₪1.26 million for an investor, ₪1.07 million for a buyer on the open market. See our analysis of mortgage credit.

Another signal, this time from the Ministry of Finance: in August, nearly a third of home sales by households moving within the center involved sellers pressed by the single residence tax deadline. Our article on the resale deadline explains why this impacts prices.

Urban Planning: Thousands of Housing Units Approved

Sources: Nadlan Center. Our articles detail Tel Aviv districts 5 and 6, Atarim and Jaffa, Haïfa, Rishon LeZion and Mevaseret Zion, and reconstruction after missile attacks.

Land: Developers Pulling Out

In Harish, the Land Authority found no winners for six lots totaling 722 housing units. Developers cite high development costs, a large inventory of unsold units, and waiting for the post-election period. See Harish's failure.

Urban Renewal and Construction Sites

According to an expert quoted by Globes, 50 to 60% of already signed urban renewal projects are facing requests to reduce compensations. Another expert, cited in Nadlan Center, points out that the promise of a new apartment does not hold the same value for a bank as it does for the market. More details in our analysis. On construction sites, two workers were killed on October 28 in crane accidents: read our article on safety and site supervision.

Buyers from France, luxury, and Jerusalem

Developers offer buyers coming from France an interest-free loan of €100,000 or discounts up to ₪500,000: see our analysis of these offers. The high-end segment remains active, with half a floor sold for ₪37M in Tel Aviv: see the luxury market. In Jerusalem, the Supreme Court is pushing for an agreement for 260 households living on land leased from the Church: see our article.

What This Means for Your Project

Political uncertainty does not change list prices or project guarantees, but it does increase developers’ wait-and-see attitude, which strengthens the negotiation margin for a prepared buyer. TheMarker also noted that, within the same city, a 3-room apartment sold for ₪660,000 and a 4-room for ₪800,000: price differences remain significant from one city to another. Calculate the full cost: 18% VAT included in the price of new properties, closing costs of 10 to 13%, purchase tax (Mas Rechisha) to be checked according to your profile, with our taxes and fees calculator.

Surround yourself with three experts: lawyer · broker · architect. IsraelStart lists 300+ new projects across Israel: browse the catalog and request a personalized assessment, with no obligation.

Sources

- Israel Hayom — Elections 2026: Exit Polls and Results (27/10/2026)
- Nadlan Center — Real Estate and Construction Indices on the Tel Aviv Stock Exchange Drop Amid Political Uncertainty (28/10/2026)
- TheMarker — "The Worst Scenario for Investors Came True": Construction Index Drops by 8% (28/10/2026)
- Globes — After Three Months of Decline, Mortgage Arrears Are Rising Again (22/10/2026)
- Globes — New Treasury Data Reveals Pressure on Households Moving Homes (25/10/2026)
- Nadlan Center — 14,000 More Homes in the Historic Heart of Tel Aviv: Districts 5 and 6 Plan Approved (28/10/2026)
- Nadlan Center — 401 Apartments in Towers Near Bloomfield Stadium: Plan Approved (28/10/2026)
- Nadlan Center — After Building Rights Reduced, Atarim Square Towers Plan Approved (28/10/2026)
- Nadlan Center — Green Light for Nearly 1,200 Urban Renewal Apartments in Neve Shaanan, Haifa (26/10/2026)
- Nadlan Center — 1,550 Apartments and 500,000 sqm of Facilities: New North Rishon LeZion District Approved for Submission (27/10/2026)
- Nadlan Center — On the Tel Aviv-Jerusalem Road, a Plan for Hundreds of Apartments Approved for Submission (25/10/2026)
- Nadlan Center — Arad Neighborhood Hit by Missile Moves Toward Reconstruction: 360 Apartments Submitted to National Committee (26/10/2026)
- Nadlan Center — Failed Tender in Harish: No Bids Accepted for 722 Apartments (28/10/2026)
- Globes — From 12 Extra sqm to 6: What to Do When the Developer Reduces the Benefits? (23/10/2026)
- Nadlan Center — How Much Is a Promise of a New Apartment Worth in a Pinoui-Binoui Project? (25/10/2026)
- Nadlan Center — Deadly Day: Two Workers Killed in Crane Accidents in Ramat Gan and Herzliya (28/10/2026)
- Nadlan Center — Loan of €100,000 and Significant Discounts: Offers Made to Buyers from France (27/10/2026)
- Nadlan Center — Half a Floor Bought for 37M₪ in a Luxury Seafront Tower in Tel Aviv (27/10/2026)
- Nadlan Center — Supreme Court Pushes for Agreement on Church Lands in Jerusalem (28/10/2026)
- TheMarker — In the Same City: 3-Room Apartment for 660,000 ₪, 4-Room Apartment for 800,000 ₪ (23/10/2026)