In the first quarter of 2026, a 15% decrease in the starts of apartment construction in Israel was recorded, with only 18.9 thousand apartments built, compared to 21.5 thousand apartments in the same quarter the previous year. Nevertheless, on an annual summary, there was a slight increase of 1.7% in construction starts, reaching about 70.7 thousand apartments, after deducting apartments that were demolished as part of urban renewal. Additionally, office construction starts have plummeted to a four-year low, and construction for commercial companies has nearly ceased entirely. These trends indicate challenges in the real estate market, but the supply in the center of the country is not expected to decrease, which could impact housing prices in the future. The data shows a mixed picture in the real estate market, with contractors facing a decline in construction starts, but overall supply remaining stable.