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SUMMARY
Yes. Israeli developers are discounting unsold apartments now, and the market has moved beyond financing gimmicks alone: ordinary negotiations of a few percent are more realistic, buyer-club deals can reach the high single digits or low teens, and a few developers have tested explicit double-digit cuts.
The headline inventory number matters because it changes the balance of power. Close to 85,000 new apartments remain for sale, equivalent to roughly 27 months of supply at the current sales pace, so buyers have far more choice than they did in a tight market.
The national stock figure is only the starting point. The real negotiating leverage sits at project and unit level: apartments near completion, awkward layouts, expensive large units and homes that have simply been sitting for too long are where developers have the strongest reason to move.
Prashkovsky's 2026 auction is one of the clearest examples of visible repricing. Minimum prices were often around 10% below previous comparable sales, with some reductions larger still, yet the campaign ultimately sold 53 apartments despite more than 100,000 website visits and heavy promotion.
That auction cuts both ways. It proves developers are willing to show meaningful price reductions, but it also shows that a 10% discount does not automatically clear inventory when mortgage affordability, confidence, unit quality and expectations of future concessions are still working against the sale.
Official list prices remain a poor guide to the real deal. Developers still have strong reasons to preserve recorded prices, so part of the discount continues to appear through 20/80 or 10/90 payment plans, indexation exemptions, mortgage subsidies, upgrades, storage, parking and buyer-club structures.
Those financing concessions can be large enough to rival a direct discount. On a NIS 3 million apartment, deferring NIS 2.4 million for three years under a 20/80 structure is worth roughly NIS 267,000 at a 4% annual value of money, or close to 9% of the purchase price.
Regulators have made the most aggressive financing promotions harder to use at scale. That matters because the market is gradually being forced to reveal more of the economic discount directly instead of hiding everything inside deferred payments and contractor-subsidized loans.
Developers are under more financial pressure, but this is not a broad distress market. Residential-project credit at the five major banks rose sharply in 2025, and sales are lagging construction in many projects, yet the banking system still shows substantial buffers and stronger developers can afford to wait.
The practical conclusion is that today's buyer should negotiate the economic price, not the brochure price. Start with recent comparable transactions, establish the best price under normal payments, then put a shekel value on every financing benefit; in the right project, the gap between the published offer and the real clearing price can be substantial.
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Are Israeli developers really discounting unsold apartments now?
Yes. Israeli developers are currently giving buyers real discounts on unsold apartments, and some recent deals have moved well beyond the small incentives that were common a year or two ago.
The clearest change is that developers are becoming more willing to show the discount. For years, much of the price reduction came through 10/90 payment schedules, subsidized mortgages, exemptions from construction-cost indexation or expensive upgrades. Those offers are still around, but we now also see developers openly testing prices 10% or more below previous transactions.
Prashkovsky provides one of the strongest recent examples. The company put hundreds of apartments across projects in Tel Aviv, Herzliya, Haifa and Ashdod into a digital auction, with minimum prices generally around 10% below comparable apartments it had previously sold and reductions reaching 15% or more in some cases.
The broader market still looks more restrained. Real-estate marketing professionals interviewed by Globes recently described roughly 3%–5% as a realistic direct negotiating range for ordinary buyers, while organized buyer clubs have sometimes pushed total reductions into the 5%–15% range.
So yes, the discounting is real. The size of it depends heavily on which apartment a developer needs to move.
| Type of deal | Discount currently visible | What the buyer is getting | How common is it? |
|---|---|---|---|
| Normal individual negotiation | ~3%–5% | Direct price reduction | Increasingly realistic |
| Buyer-club deal | ~5%–15% | Volume-based negotiated discount | Available selectively |
| Aggressive developer campaign | ~10%+ | Explicit lower starting price | Still unusual |
| Hard-to-sell unit | Can exceed normal range | Bespoke negotiation | Highly project-specific |
Why are Israeli developers discounting more now?
Israeli developers have more reason to negotiate today because they are carrying a huge stock of apartments while buyers can afford to wait.
Israel's Central Bureau of Statistics recently counted close to 85,000 new apartments remaining for sale. At the current sales pace, that is roughly 27 months of supply.
The build-up has been dramatic. Before the October 2023 war, the Bank of Israel was referring to a stock closer to 61,000 homes. The market has therefore added roughly 24,000 unsold units, an increase of almost 40%.
Construction also kept moving. Earlier this year, the Bank of Israel estimated an annualized pace of roughly 76,000 housing starts, while completions were still increasing. Developers were adding supply faster than a weak market could comfortably absorb it.
That gives today's buyer much more room to ask, "What will you actually take for this apartment?"
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Does 85,000 unsold apartments mean every Israeli developer is desperate to sell?
No. Israel's large stock of unsold new apartments creates bargaining power for buyers, but the pressure varies enormously from one project to another.
A unit counted as unsold can still be years away from completion. A developer that has already pre-sold enough apartments to fund construction can afford to wait far longer than one approaching handover with dozens of finished homes left.
Location also changes the equation. Roughly 31% of the national stock is concentrated in the Tel Aviv district and another 25% in the Central district. Jerusalem and Tel Aviv-Jaffa each have thousands of new apartments available, while cities such as Bat Yam, Netanya, Lod, Haifa and Kiryat Gat also have substantial pipelines.
Yet an apartment in a strong Tel Aviv micro-location can remain easy to sell even when the district looks oversupplied. A weaker unit in a smaller project may face far more pressure.
For buyers, the national inventory figure tells us where the market stands. The remaining stock inside the specific building tells us how hard we can negotiate.
| Market | Approximate unsold stock / share | What we should infer |
|---|---|---|
| Tel Aviv district | ~31% of national inventory | Very large pipeline, but huge differences between projects |
| Central district | ~25% | Heavy competition among developers |
| Jerusalem city | Around 10,000 units | Large absolute supply, highly neighborhood-dependent |
| Tel Aviv-Jaffa | Just under 10,000 | Lots of stock despite expensive land and deep demand |
| Israel overall | Close to 85,000 | Buyers currently have far more choice than in a tight market |
Did Prashkovsky's 10% discounts actually attract buyers?
Yes, but the finished Prashkovsky auction also showed how cautious Israeli buyers remain even when a developer cuts prices aggressively.
This is useful because we now have the result rather than just the marketing announcement. More than 100,000 people visited the auction website, hundreds of apartments were offered and Prashkovsky spent about NIS 15 million promoting the event. The company ultimately sold 53 apartments.
Fifty-three deals is a real burst of sales in today's slow market. But after a campaign of that size, it does not look like buyers were fighting over the stock.
Cutting around 10% can unlock transactions, yet price alone is not instantly clearing inventory. Mortgage affordability, buyer confidence, location, apartment type and expectations of further concessions are still holding people back.
Developers can sell when they become aggressive enough. Buyers know that now too.
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Are Israeli developers cutting list prices, or hiding the discount elsewhere?
Both happen today, although developers still prefer concessions that allow them to preserve the official apartment price.
That preference makes economic sense. Once a developer records a much cheaper transaction, the next buyer has a fresh comparable. Valuers can see it. Banks financing the development can see it. People who bought earlier in the project can see it.
A NIS 3 million sale recorded at NIS 2.7 million therefore creates a different problem from a NIS 3 million contract that comes with unusually generous financing.
Developers consequently use several routes at once: negotiated reductions, delayed payments, exemption from construction-cost indexation, mortgage subsidies, kitchen or specification upgrades, parking and storage benefits, and discounts through organized buyer groups.
These days, buyers need to compare the whole package because the contract price alone can hide a surprisingly large concession.
How much is a 20/80 or 10/90 apartment deal really worth?
A 20/80 or 10/90 payment plan can easily be worth several percentage points of an Israeli apartment's price, even when the developer officially charges exactly the same amount.
Take a NIS 3 million apartment under a 20/80 plan. The buyer pays NIS 600,000 and keeps NIS 2.4 million until completion. If that money remains with the buyer for three years and we value it at 4% annually, the financing benefit alone is roughly NIS 267,000.
That is close to 9% of the apartment price.
With a 10/90 structure, the value rises to roughly NIS 300,000 under the same assumptions. Exemption from construction-cost indexation can add another benefit.
The Bank of Israel has explicitly treated deferred payment as an effective apartment-price reduction. A project can therefore show no official price cut and still be considerably cheaper in economic terms than its advertised number suggests.
| NIS 3m apartment | Amount paid initially | Amount deferred | Approx. value of 3-year deferral at 4% | Equivalent share of price |
|---|---|---|---|---|
| Standard immediate-payment comparison | NIS 3.0m | NIS 0 | NIS 0 | 0% |
| 40/60 | NIS 1.2m | NIS 1.8m | ~NIS 200k | ~6.7% |
| 20/80 | NIS 600k | NIS 2.4m | ~NIS 267k | ~8.9% |
| 10/90 | NIS 300k | NIS 2.7m | ~NIS 300k | ~10.0% |
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Are 10/90 apartment deals still everywhere in Israel?
They still exist, but Israeli regulators have made it harder for developers to rely on aggressive financing promotions at the scale seen during the boom.
At one point, Finance Ministry data showed financing benefits attached to more than half of new apartments sold in one observed month. Contractor-subsidized balloon and bullet mortgages also became a meaningful part of new mortgage lending.
The Bank of Israel became uncomfortable with the risk. It introduced rules that impose additional bank-capital requirements when too many apartments in a project are sold with large deferred-payment structures, while contractor-subsidized bullet and balloon loans were capped at 10% of monthly housing-loan originations.
The effect was visible quickly. In the Netanya tax region, Finance Ministry analysis found that the proportion of relevant developer sales carrying financing incentives dropped from around 65% before the restrictions to roughly 20% shortly afterward.
Developers can still use payment terms creatively, but financing is no longer an unlimited substitute for cutting the economic price.
Are Israeli apartment prices finally falling?
Israeli apartment prices are currently below last year's level, although the latest readings show that the decline has stopped accelerating.
The newest CBS release shows home prices rising by 0.2% in the latest two-month comparison. That was the second consecutive increase after a stretch of declines. Prices were still around 1.2% lower than a year earlier.
The path has been unusual. Earlier this year, one two-month period produced a 1% drop, the largest monthly-style decline in about eight years, and prices had fallen in nine of the preceding 12 monthly readings.
CBS has also started publishing a separate second-hand apartment index, partly because developer financing offers make the new-home market harder to read. Its first release showed second-hand prices falling 1.2% between the first and second quarters.
So the broad price correction is real, but it remains mild beside the concessions visible in individual new-build deals. A buyer negotiating directly with a developer can encounter a much bigger adjustment than the national index suggests.
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Are new apartments selling better now?
Yes. Israeli new-home sales have improved lately, which is one reason we should not expect every developer to start slashing prices at once.
The Bank of Israel recently described transaction volumes as moderately higher in May and June, particularly for new apartments. That improvement has come alongside lower borrowing costs: the central bank has now reduced its policy rate to 3.25%.
Mortgage activity has remained substantial too. Seasonally adjusted mortgage borrowing reached around NIS 10 billion in July.
This gives developers a little more breathing room than they had during the weakest part of the slowdown. Buyers are returning, financing is becoming somewhat less painful and the economy has recovered from an unusually weak start to the year.
Still, the market has not suddenly become easy for sellers. The Bank of Israel's latest description of unsold inventory was simple: stable, but still high.
Developers therefore have reasons to negotiate today without having reasons to panic.
Which unsold Israeli apartments are easiest to negotiate?
Finished apartments, awkward units and homes sitting inside slow-moving projects currently give buyers some of the best chances of getting a meaningful developer discount.
The timing of a project matters a lot. A developer selling the first 40 apartments in a 300-unit development wants to protect future pricing. Cutting too hard can affect years of later transactions.
The equation changes near completion. Once most construction costs have been incurred, keeping the final apartments unsold ties up capital and extends marketing and financing costs.
Apartment type can matter just as much. Oversized units, expensive penthouses, poor orientations, ground-floor apartments, unusual layouts and homes facing future construction often have a smaller pool of buyers.
That is why asking for the developer's generic "current promotion" leaves money on the table. We want to know which exact units have been there the longest.
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Can buyer clubs really get 10% off Israeli new apartments?
Yes. Israeli buyer clubs can currently reach discounts that an individual walking into a sales office may struggle to obtain.
Recent industry reporting shows why. A developer may accept a much lower margin if one negotiation produces 20, 30 or 50 signed contracts at once. The company gets cash-flow visibility, improves its sales rate and reduces the risk of carrying those apartments for another year.
HighTechZone founder Dagan Ronen recently described a process in which his organization first identifies the developer's genuine minimum selling price and then pushes another 4%–10% below it. According to him, the resulting total discount often reaches at least 5% and can move into the 9%–15% range relative to published pricing.
We should not assume every advertised buyer-club offer reaches those numbers. The useful point is that developers are currently willing to exchange margin for certainty.
An individual buyer can use the same logic on a smaller scale. Fast financing, flexible apartment choice and a willingness to sign quickly can all have monetary value to the seller.
Are Israeli developers under enough financial pressure for prices to fall much further?
Developer finances are clearly tighter than before, but Israel has not reached the kind of broad distress that would force companies to dump apartments at almost any price.
Bank of Israel data show credit financing residential construction projects at the five major banks rising roughly 40% during 2025, from around NIS 49 billion to NIS 69 billion.
At the same time, the share of bank exposure to projects where construction was progressing faster than apartment sales rose by about nine percentage points to roughly 44%.
That is uncomfortable for developers. Construction continues, money remains tied up and unsold units keep accumulating financing costs.
Banks are watching the same problem closely. The Bank of Israel's latest credit-officer survey found tighter conditions for higher-risk construction and real-estate borrowers even as some other lending spreads became easier.
There is still a large cushion across the system, however. Bank of Israel stress analysis found that the average residential development could absorb a very large price decline before the financing bank itself started losing principal.
The pressure is strong enough to create deals. We do not yet see the financial conditions for a national fire sale.
| Developer-financing indicator | Recent reading | Direction | What it suggests |
|---|---|---|---|
| Major-bank residential project credit | ~NIS 69bn | Up ~40% in 2025 | More capital tied up in projects |
| Bank exposure where building outruns sales | ~44% | Up ~9 percentage points | Sales are lagging construction in many projects |
| High-risk construction credit conditions | Tightening | Worse for borrowers | Weak developers face more pressure |
| System-wide bank buffer | Still substantial | Lower than before | Distress remains selective rather than universal |
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How much should buyers ask off an Israeli developer's price today?
For an ordinary Israeli new-build apartment today, testing a 3%–5% cash-price reduction is reasonable, while 10% or more needs a project, unit or buying structure that gives the developer a stronger reason to say yes.
On a NIS 3 million apartment, 3% equals NIS 90,000 and 5% equals NIS 150,000. At 10%, the saving reaches NIS 300,000.
Those numbers are large enough that the negotiation should begin with money rather than free appliances.
Recent deals give us a useful range. Ordinary negotiations are often several percentage points. Buyer groups can reach the high single digits or low teens. Prashkovsky publicly tested double-digit reductions. The completed auction then showed that even those prices did not make hundreds of apartments disappear immediately.
That gives buyers room to be more ambitious these days, particularly when a unit has been available for a long time.
How do we know whether an Israeli developer discount is actually good?
A developer's Israeli apartment discount is only good when the final economic price beats recent comparable transactions, because a percentage off a fictional list price tells us almost nothing.
Israel's Tax Authority transaction database gives buyers a strong starting point. We can check what similar apartments in the project or nearby developments actually sold for and then adjust for floor, view, size, parking, storage and timing.
After that, every financing benefit needs a shekel value. Three years of deferred payment may be worth far more than a kitchen upgrade. Exemption from indexation has a measurable value. Free storage is useful only if comparable apartments usually charge separately for it.
This also protects buyers from impressive-looking marketing. A developer can advertise NIS 300,000 off after quietly setting the starting price NIS 400,000 above nearby transactions.
The question we care about is simple: what does this apartment really cost compared with what similar buyers are paying now?
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Should buyers negotiate the apartment price or the payment plan first?
Buyers should establish the lowest straightforward cash-equivalent price first, then compare the developer's financing package separately.
Suppose a developer offers the same apartment at NIS 2.85 million under normal payments or NIS 3 million under a three-year 20/80 plan. The cash offer is NIS 150,000 cheaper on paper. Depending on the buyer's financing costs, however, deferring NIS 2.4 million may be worth even more.
Now reverse the situation. A developer keeps the apartment at NIS 3.2 million but offers a flashy 10/90 plan. If comparable homes are changing hands around NIS 2.9 million, part of the supposed financing benefit simply compensates for the higher starting price.
Separating those two negotiations makes the comparison much easier.
We would first ask, "What is your best price with normal payments?" Only after getting that number would we price the 20/80, 10/90, mortgage subsidy or indexation benefit.
Will Israeli developers start discounting apartments even more?
Israeli developers could cut more if inventory refuses to clear, but current evidence points to selective discounting rather than a sudden nationwide price war.
There are genuine reasons for further reductions. Construction remains active, financing is expensive, buyers have plenty of choice and explicit double-digit offers have already entered the market.
Recent developments also put a ceiling on how bearish we should become. Interest rates have fallen to 3.25%, new-home transactions have improved and home prices have now increased for two consecutive readings after their earlier decline.
Prashkovsky's auction captures the tension nicely. A large developer was willing to start some apartments around 10% below previous comparable prices. After more than 100,000 website visits, the campaign sold 53 homes. Lower prices work, but they are not enough to make large inventories disappear overnight.
If sales keep recovering, developers with strong balance sheets will resist deeper cuts. If sales stall again while completions keep arriving, the weaker projects will have much less room to wait.
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So are Israeli developers discounting unsold apartments now?
Yes. Israeli developers are genuinely discounting unsold apartments today, and the evidence has become much harder to dismiss as ordinary marketing.
We now see several layers of discounting at the same time: ordinary negotiated cuts of a few percent, buyer-club deals moving toward double digits, valuable payment deferrals and occasional explicit reductions around 10%–15%.
The market still has enough demand to prevent indiscriminate price cutting. Lower interest rates and a recent improvement in new-home transactions are helping developers, while stronger projects can continue protecting their prices.
But buyers currently have leverage that was far harder to find in Israel's previous seller's market. The biggest opportunities appear where a specific developer has too much remaining stock, a project is approaching completion or a particular apartment has been sitting unsold.
Our answer is clear: developer discounting in Israel is real and increasingly visible. The national market has not reached fire-sale territory, but anyone buying a new apartment at the published price without testing how far the developer will move is probably leaving part of today's buyer advantage unused.
OUR METHODOLOGY
We approached the question "Are Israeli developers discounting unsold apartments now?" as a market question with no useful one-number answer. Instead of relying on anecdotes or headline discounts, we broke it into the parts that actually determine whether buyers are getting better deals: visible price cuts, unsold inventory, project-level pressure, financing incentives, transaction volumes, price indices, construction activity and developer credit conditions.
For the national market, we relied first on official Israeli data. The Central Bureau of Statistics is the main source for unsold new-home inventory, months of supply, geographic concentration, construction starts and completions, and the latest apartment-price readings. The Bank of Israel is the main source for mortgage activity, policy rates, project financing, credit conditions and the regulatory treatment of deferred-payment structures.
We used the roughly 85,000 unsold-home figure as a market-level measure of buyer choice, not as proof that every developer is under the same pressure. To judge negotiating leverage, we separated national inventory from the much more important project-level questions: how much stock remains in the building, how close the project is to completion, which units have been sitting longest and how easily the developer can keep waiting.
We treated payment structures such as 20/80 and 10/90 as economic discounts only after assigning a value to the deferred money. The examples in the article use a simple 4% annual value-of-money assumption over three years so that a financing package can be compared with a direct cash-price cut on the same basis.
For visible developer discounting, we used Prashkovsky's 2026 digital auction because it gave us both sides of the evidence: the announced minimum prices, which were often around 10% below previous comparable sales, and the completed campaign result, which showed 53 transactions after more than 100,000 website visits. That makes it more useful than quoting a promotion before we know whether buyers actually responded.
For buyer-club discounts and ordinary negotiation ranges, we used recent industry reporting only where it added information that official datasets cannot show directly. We treated those figures as observed market ranges rather than universal rules, because private negotiations vary sharply by developer, project, unit and buyer profile.
We also separated official apartment prices from the total economic package. A developer may preserve the recorded sale price while giving value through delayed payments, indexation exemptions, mortgage subsidies, upgrades, parking or storage. That is why the Tax Authority's transaction database is central to the comparison: the useful benchmark is what similar apartments actually sold for, not the percentage written on a marketing banner.
Key sources used include Israel CBS on real-estate transactions and unsold new homes, Israel CBS on housing-market price changes, Israel CBS on construction starts and completions, the Bank of Israel's September 1, 2026 monetary-policy decision, the Bank of Israel on construction and real-estate credit, the Bank of Israel restrictions on deferred-payment and contractor-subsidized loan structures, the Israel Tax Authority real-estate information database, Globes on the completed Prashkovsky auction, Globes on the auction's initial pricing, and Globes on buyer-club discounting.
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