Specialized data reveals that the Israeli real estate market has entered a significant recession, with a sharp decline in sales, a decline in citizens' purchasing power, a slowdown in investment, and a shortage of labor.
A report by Standard & Poor's Malot, a credit rating and market research firm, quoted by the Israeli newspaper Globes, stated that the Israeli real estate sector is experiencing its lowest levels in history, with pressures on developers increasing due to slowing sales, rising interest rates, and rising construction material prices.
The company, based in Israel and operating under the S&P Global Services umbrella, states that the sector's situation will not begin to improve until the second half of 2026, and until then, bankruptcies among highly indebted developers are likely to increase. It noted a 28 percent decline in acquisitions by foreign buyers.
The company highlighted key trends in the sector, noting the sharp decline in the number of home purchases, which accelerated at the beginning of 2025, as interest rates continued to rise.
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