Q2 2026: New construction sales up 38%, secondary market down – Full CBS report analysis

Full analysis of the CBS report "Apartments in real estate transactions," April–June 2026

Published August 13, 2026

In the second quarter of 2026, 22,636 apartments were sold in Israel — 11.7% more than a year ago. Compared to the previous quarter, the market remained almost flat (−0.6%), but a major shift occurred inside: new construction gained 38%, while the secondary market declined.

What the quarter showed

All market growth came from new construction. The secondary market not only lagged behind — it contracted. Buyers are shifting from private sellers to developers, and for good reason: developers now offer selection, discounts, and flexible payment terms, while private sellers are far less willing to cut prices.

One-third of new construction sold through state programs

Every third new apartment in the second quarter sold through a subsidized state program. This is an important correction to the headline "market up 38%": growth on the free market is more modest — roughly 6,500 apartments versus 5,000 a year earlier.

Month by month: April slumped, May and June pulled the quarter up

April nearly halved — that's the month of holidays and short work weeks, a dip that repeats year after year. June turned out to be the best month of the half-year: 8,807 transactions.

Record numbers of unsold apartments remain

The inventory barely moved — it declined less than 2% from December. The "months of supply" metric, however, fell noticeably: from 30.5 to 26.0. The difference is simple: we're dividing by a higher sales pace rather than subtracting from inventory.

Twenty-six months of supply is still a strong buyer's market. Normal is considered 12–18 months; anything above 18 favors the buyer.

Prices falling, rents rising

Housing price index: −2.0% year-over-year

New apartment price index: −3.9% year-over-year

Private rental: +3.3% year-over-year

Developers prefer to cut prices rather than halt sales — with this level of inventory, it's the only way to clear stock. Landlords, meanwhile, are raising rents: demand for rentals is growing precisely because some buyers are delaying purchases.

What buyers should do

Negotiate. With 84,000 unsold apartments, a discount, finishing bonus, or convenient payment schedule is not impertinence — it's standard negotiating practice.

Compare subsidized projects. One-third of the new construction market operates under state programs; if you qualify, the price changes.

Don't rely on national averages. Price differences between neighborhoods in the same city can reach a third of the per-meter cost — you need to calculate based on your specific neighborhood and actual transactions.

All figures are calculated directly from CBS report tables. Quarterly results are the sum of monthly values and have been verified against annual rows in the report.