PNN – A Hebrew-language media outlet admitted that the war against Iran also blew up the artificial respiration tube of the Israeli housing market.
According to the report of Pakistan News Network, the Hebrew-language newspaper Zeman Yisrael acknowledged in an article the devastating consequences of the American-Zionist military adventure against Iran for the Zionist occupiers, declaring that the (American-Zionist terrorist) war against Iran caused the remaining oxygen pipe connected to the housing market to explode.
The Hebrew-language media outlet admitted: The war broke out and exposed all the vulnerabilities of the Israeli real estate industry at once.
The rise in oil prices, a result of the war, threatens to reignite inflation, which recently seemed to be subsiding.
Federal Reserve Chairman Jerome Powell has announced that he will review the Fed’s interest rate cut path.
The Bank of Israel governor may also be forced to follow suit, having previously ignored a rate cut due to the war.
Meanwhile, real estate developers are struggling with huge debt and an unprecedented backlog of unsold apartments. The total number of unsold apartments this month hit a record 86,291, double the number four years ago.
This comes as homebuilders continue to break records in construction starts, with more than 80,000 projects starting last year alone.
And if that weren’t enough, the biggest and most predictable blow could come. By the beginning of the month, 744 of the 1,438 deals signed in 2023 had been canceled. The bad news is that thousands more remain “on paper” and have yet to reach the prepayment stage. As the delivery dates for the 2023 and 2024 deals approach, we may see another, much larger wave of people unable to make their remaining payments and forced to cancel their deals.
The Bank of Israel yesterday published a new challenge that real estate developers will face this year.
The bank cited a shift in the immigration balance as one of the reasons for the decline in housing demand. According to the analysis, the period 2024-2025 will see a decline in the adult population growth rate, partly due to a decline in immigration, which contributed to the decline in demand.
This is the figure that contractors should adjust their construction pace to. In any case, 2025 ended with an 11% decline in transaction volume compared to 2024, the lowest level in the past 20 years.
In short, the war has not only damaged the economy, but also ruptured the artificial oxygen tube that had kept the real estate market alive in recent months. With interest rates failing to fall, contract cancellations soaring, and new record highs in inventory, the future of Israel’s housing market has never been more uncertain.