An analysis of the results of the ten largest public companies in the Israeli real estate sector shows that they manage to cope with declining sales and profitability impacts. However, this negative trend affects their stability and increases credit risks. The year 2025 is shaping up to be one of the toughest for developers in decades, with a sharp decline in home sales and a continuous drop in prices in most areas. The sector faces an unprecedented inventory of about 83,000 unsold homes, with approximately 15,000 ready for occupancy within six months. Although construction companies' reports indicate a drop in revenues, there are almost no financial collapses among large companies. Housing prices in Herzliya, Ramat Hasharon, Tel Aviv, and Givatayim are expected to continue falling over the next five years due to significant excess supply.
