What Is a Buyers Market and Why 2026 Is Israels Most Favorable in Years
A buyers market forms when supply consistently exceeds demand — forcing sellers to compete for buyers, rather than the reverse. In Israels property market, where buyers spent recent years in bidding wars and signed contracts within days out of fear of missing out, this inversion is striking. In 2026, it is developers who are waiting for your call.
The structural causes: the Bank of Israels aggressive rate hiking cycle of 2022 to 2024 cooled mortgage demand sharply; ongoing security costs created economic headwinds; the Bank of Israel prohibited 20/80 and 10/90 developer financing schemes through end-2026, removing the cash flow engine developers relied on; and a massive inventory buildup accumulated during the demand peak of 2021 to 2022.
- Record inventory: 83,580 new units unsold nationally — 21% more than a year ago
- Financing restrictions: Bank of Israel banned 10/90 developer deals through end of 2026, squeezing cash flow
- Second-hand sellers compete directly with developers nearby new inventory — structural downward pressure
- Rate cuts ahead: each 0.25% cut brings sidelined buyers back to the market — and shifts bargaining power toward sellers
How to Negotiate With Developers and Extract Maximum Value
When you walk into a developers sales office in 2026, the posted price is an opening position, not a final number. The developer knows he has dozens of unsold units and that financing costs run daily. He needs you more than you need him.
The most powerful technique: visit 3 to 5 competing projects in your target area during the same week. Collect written offers from each. Return to your preferred project and say: I have an offer from the project nearby for X — can you match it? Developers will offer: direct price discounts of 5% to 15%, specification upgrades worth 80,000 to 200,000 NIS, interest-free developer loans of up to 1 million NIS for 10 years, or flexible payment terms of 15% at signing.
- Direct discounts: 5% to 15% off list price documented in projects with high unsold inventory
- Specification upgrades: kitchen, flooring, reinforced room, extra parking — market value of 80,000 to 200,000 NIS
- Developer loans: up to 1 million NIS, interest-free and non-indexed for 10 years
- Payment terms: 15% at signing, 85% at handover — eliminates bridge financing costs for the buyer
Second-Hand Market in Bikat Ono — The Same Leverage Applies
In Kiryat Ono, Givat Shmuel, Yehud, and Or Yehuda, the second-hand market remains active but has slowed materially. Apartments that sold within two weeks in 2021 now sit listed for months. Sellers who priced at 2021 to 2022 peaks find that inquiries have dropped. This is your entry point.
The method: check when the listing was originally posted on Yad2. Over 60 days means the seller has concluded the market disagrees with their asking price. Pull transaction data from nadlan.gov.il and Madlan. Offer 8% to 12% below asking with documented rationale.
- Target listings that are 60-plus days old — the seller is already motivated
- Use Tax Authority transaction data as your documented negotiation anchor
- Offer 10% below asking with specific comparables — market-standard in 2026
- Look for seller pressure: divorce, inheritance, upgrade — motivated sellers accept better terms
When Will the Window Close? The Signals to Watch
The current buyers window will not remain open indefinitely. In November to December 2025, apartment prices already ticked up 0.8% — the first back-to-back increase after eight months of declines. With the Bank of Israel projected to reach a 3.5% benchmark rate by end-2026, waves of sidelined demand are expected to re-enter the market in the second half of the year.
The key signals that the window is narrowing: developers stop responding to negotiation attempts with flexibility; listed prices on new projects begin rising; second-hand apartments receive multiple inquiries within the first week; banks proactively market attractive mortgage packages.
- Late 2026: benchmark rate expected at 3.5% — a cut that will return waves of sidelined buyers
- January 2026: new apartments showed a 0.8% price increase — the first stabilization signal
- H2 2026 expected to see accelerating transaction volumes, especially in near-completion projects
- Post-war normalization: security uncertainty is suppressing demand now — its resolution will release it sharply