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86,000 Unsold New Apartments in Israel: What Buyers in Gush Dan Need to Know in 2026

By December 2025, Israel is inventory of unsold new apartments reached an all-time high of 86,090 units. About 78% are already under construction and 20% are fully completed, sitting empty. The Tel Aviv and Central districts together account for roughly 56% of all unsold units nationwide. In Kiryat Ono alone, approximately 1,330-1,430 new apartments are waiting for buyers.

5 דקות קריאה

14 במרץ 2026

בקצרה

For buyers in Gush Dan, this creates a rare window of opportunity. When developers are sitting on large inventory and facing cash flow pressure, negotiating power shifts decisively to the buyer. You can negotiate on price, financing, upgrades, and contract terms in ways that simply were not possible in prior years.

עובדות מפתח

86,090 unsold new apartments as of December 2025 — a historic record per Israel CBS
28-29 months of supply at current sales pace
New apartment sales fell 23.1% in 2025 — worst real estate year in two decades
~1,430 unsold new apartments in Kiryat Ono alone
Average 4-room apartment in Kiryat Ono: NIS 3.0-3.3 million (NIS 30,000-32,000/sqm)
Real price decline of ~0.9% for new apartments in 2025
~130,000 families registered for subsidized housing — pent-up demand waiting to re-enter

How Did We Get Here: The Buildup Explained

The inventory buildup did not happen overnight. During 2021-2022, with near-zero interest rates, developers launched aggressive construction pipelines. Then the Bank of Israel raised rates from 0.1% to nearly 4.75% — one of the sharpest rate hike cycles in Israeli history. Monthly mortgage payments roughly doubled within five years, and a large portion of prospective buyers stepped back.

The October 7, 2023 war compounded matters by freezing significant economic activity. Over 130,000 families registered for subsidized housing programs opted to wait for a lottery rather than purchase at market prices — removing substantial demand from the open market.

32% of all unsold units are in the Tel Aviv district — approximately 26,660 apartments
The Central district accounts for another 23.7% — approximately 19,780 apartments
Ramat Gan added 1,008 unsold new apartments during 2025 alone
Jerusalem leads nationally with ~10,234 unsold units; Tel Aviv follows with 9,709
78% of unsold units are already under construction — developers cannot simply stop building

The Paradox: Why 86,000 Unsold Apartments Have Not Crashed Prices

Developers in Israel have spent decades building the narrative that real estate prices always rise. Officially cutting prices would undermine that belief. Instead, they offer back-door concessions: 20/80 and 10/90 financing structures, free upgrades, construction cost indexing exemptions, and even interest-free developer loans.

A 20/80 deal means the buyer pays only 20% at signing and 80% only at key delivery. The economic value equals NIS 100,000-150,000 on a typical Gush Dan apartment. The Bank of Israel recognized the systemic risk and limited developer-backed loans to 10% of any bank is monthly mortgage portfolio, valid through end of 2026.

Real price decline of ~0.9% in 2025 per Bank of Israel data
Back-door financing concessions worth NIS 100,000-150,000 on an average apartment
Bank of Israel capped developer loan deals at 10% of monthly mortgage volume through end of 2026
Despite restrictions: some developers continue finding creative workarounds
Second-hand apartment sales actually rose 10.4% in 2025

Real Opportunities for Buyers in Gush Dan and Kiryat Ono

For an informed buyer in Gush Dan, current conditions present opportunities not seen in at least a decade. Developers holding hundreds of unsold apartments and facing serious cash flow pressure want to close deals. Approach them with market knowledge, patience, and a good real estate attorney.

In areas set to benefit from major transit upgrades — Kiryat Ono, Givat Shmuel on the Purple Line and future Metro M3 — future demand is structurally strong. A well-negotiated purchase today can translate into hundreds of thousands of shekels saved versus buying when the market heats up again.

~1,430 unsold new apartments in Kiryat Ono — direct negotiating leverage
20/80 financing deals still available — capture them before restrictions tighten
Free upgrades — kitchen, flooring, balcony — items developers under pressure will concede
Shorter bank guarantee period and indexing exemptions — contractual improvements to demand
Each Bank of Israel rate cut will accelerate the return of pent-up demand

The Risks: Not Every Distressed Developer Is a Safe Bet

Developer pressure creates opportunity — but also risk. A developer facing genuine financial distress may fail to complete a project, cause significant delivery delays, or deliver substandard construction quality.

Israel is Sale of Apartments Law requires developers to provide bank guarantees for all payments exceeding 7% of the purchase price. Projects with full bank-supervised financing offer significantly greater protection.

Check the developer is contractor license in the Ministry of Housing registry
Demand a project with full bank-supervised construction financing
Never pay more than 7% of the purchase price without a bank guarantee
Talk to residents in the developer is prior projects about quality and delivery
For public companies: check published financial statements for liquidity indicators

צ׳קליסט

Your Buyer Checklist: 8 Steps to Maximize the Opportunity in Today is Gush Dan Market

Before sitting down to negotiate with a developer, work through this checklist:

1Market Research: Pull actual transaction data from Israel is Tax Authority and Madlan for comparable units
2Developer Vetting: Verify contractor license, read reviews from prior buyers, confirm bank-supervised financing
3Independent Real Estate Attorney: Retain a lawyer who represents only you before signing anything
4Price and Specification Review: Get a full breakdown of inclusions, then negotiate upgrades
5Financing Structure: Evaluate the 20/80 deal is true economic value before restrictions tighten
6Bank Guarantees: Ensure every payment beyond 7% is covered by a bank guarantee under the Sale of Apartments Law
7Delivery Date: Negotiate a specific delivery date with agreed compensation clauses for each month of delay
8Safe Room (Mamad): Confirm the apartment includes a reinforced safe room — now standard and affects resale value

שאלות נפוצות

שאלות ותשובות

From a negotiating power standpoint, yes. Developers are under pressure, real concessions are on the table, and the window is time-limited. When the Bank of Israel continues cutting rates, prices will rise. That said, vet the developer and project carefully before committing.

Formal price reductions of 5-10% are achievable on projects with large inventory. A 20/80 deal is worth NIS 100,000-150,000 in economic value. Add free upgrades worth NIS 50,000-80,000 and total savings of NIS 200,000-300,000 are realistic.

Project non-completion or severe delivery delays. Mitigate by choosing a project with bank-supervised financing, demanding bank guarantees under the Sale of Apartments Law, and hiring a real estate attorney.

Developers prefer to maintain official high prices and offer back-door concessions rather than officially cut prices. The construction start slowdown of 2023-2024 also creates expectations of a future supply squeeze.

Kiryat Ono benefits from strong structural demand and upcoming infrastructure including the Purple Line and Metro M3. Experts expect 10-20% appreciation within 3-5 years for buyers who enter at today is market conditions.

86,000 unsold apartments is a large number — but they will not sit on the shelf forever. The Bank of Israel is expected to continue cutting rates through 2026, pent-up demand from hundreds of thousands of households is waiting for the right entry point, and the construction start slowdown of 2023-2024 will create a supply squeeze in one to two years.

If you are considering purchasing a new apartment in Gush Dan — Kiryat Ono, Givat Shmuel, Ramat Gan, Yehud, or Ganei Tikva — now is the time to do deep market research and negotiate smart. Shmuel and HaNechas BeGovah HaEinayim accompany buyers through every step of the purchase process with full transparency. Contact us for a free initial consultation.

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