A Word from the CEO – Nimrod Zvik:
“The dream of homeownership is becoming increasingly distant for many young couples. Rising interest rates and security uncertainty are hurting purchasing power and trust, and are constricting the entire market.”
The Situation on the Ground:
According to the article’s data, the real estate market is facing a freeze: a dramatic drop in sales, a surge in mortgage defaults, and a sharp increase in the inventory of unsold new apartments. This is a deep crisis—not just a temporary slowdown.
The Factors Behind the Crisis:
The Bank of Israel’s interest rate hikes abruptly increased mortgage costs, which harmed purchasing power and hurt consumers’ personal finances.
The war and security fears have heightened concerns for real estate consumers in border and periphery areas—and contractors are facing liquidity challenges due to an inventory overflow.
The Solution:
Zvik calls for immediate government action—a controlled interest rate reduction, the establishment of a government fund to purchase unsold inventory, providing stable guarantees to developers in the periphery, and implementing modular construction methods that can lower costs.
Support for Young Couples:
There is a need to expand purchase grants, ease mortgage loans, and provide tax relief for young people—to re-stimulate demand and restore public confidence.
A Look to the Future:
“If the government doesn’t act now—the price of hesitation will be more expensive than the immediate gap we consider paying.”
Zvik states the need to highlight professional responsibility toward the public and said: “Political calm or skepticism leads to a systemic collapse that will only deepen households’ crisis.”
Credit and Link to the Original Article:
The article was published on the Ice website on June 17, 2025
To read on the original website:
https://www.ice.co.il/realestate/news/article/1069600
