Apartment Prices: Where Has There Been a Decrease, What About the Center of the Country — And What Happened to Rent?

In March and April, there was a 0.3% decrease in apartment prices in Israel, following a slight increase the previous month. The index of new apartment prices fell by 0.7%, and contractors hope for improvement after the war ends. The real estate market has seen a significant drop in residential land prices, which have plummeted by 25% over the past four years. However, banks are highly exposed to the real estate sector, with about 60% of their loans directed towards it, leading to widespread economic issues.

The market is in a difficult state, with potential buyers waiting for further price drops, while rents continue to rise. Many investors understand that prices are expected to fall by about 30% in the coming years, prompting them to lower prices to sell apartments. The current situation indicates instability in the housing market, with a high supply of apartments and low demand, making it difficult to sell properties at previous prices.