The recent surge in oil prices, driven by global energy supply disruptions due to the war, could significantly impact the Israeli real estate market. Although the construction input index has shown signs of stabilization in recent months, it is expected to rise again due to increased cement production costs, an energy-intensive industry, and rising transportation fees. Homebuyers and developers, who had hoped for a continued decline in interest rates, now fear an increase. However, some experts suggest that if the war leads to layoffs and wage reductions, real estate prices might eventually fall. In this context, the Israeli real estate market remains uncertain, with an oversupply that could keep prices under pressure in areas like Herzliya, Tel Aviv, and Ramat Hasharon.
