Resales Surge Again in Tel Aviv: 30% Increase for the Second Consecutive Month

By Nimrod Bosu, Nadlan Center

The second-hand apartment market in Tel Aviv, which experienced a severe slowdown over the past year, is showing strong signs of recovery, according to a new report by the Ministry of Finance’s Chief Economist. This comeback comes even as more than 10,000 new apartments in the city remain unsold. Similar recovery trends were also observed in Bat Yam and Beit Shemesh.

In August 2025, a total of 7,632 apartments were purchased nationwide — a slight 2% increase compared to August last year, but a 5% decrease from July 2025. Excluding approximately 1,060 subsidized transactions, the number of free-market deals stood at 6,572 — reflecting a 4% annual decrease and a sharper 9% drop compared to the previous month.

Developers’ (new homes) sales amounted to 3,171 apartments, including subsidized deals — a modest 5% decline from a year earlier. However, when excluding the subsidized transactions, the picture shifts: sales plunged 20% compared to last August. The report also noted a “significant decrease in the frequency of reported financing incentives,” particularly in high-demand areas such as Tel Aviv, the Central District, and Netanya.

While new-home sales continue to weaken, the second-hand housing market is gradually regaining momentum. In August 2025, 4,461 second-hand apartments were sold — a 7% increase from August 2024, though still 16% below July levels. The Ministry emphasized that, despite this improvement, transaction volumes remain relatively low compared to historical August averages in the early 2000s.

A geographic breakdown reveals that seven out of ten regional tax areas recorded annual increases in second-hand transactions, with the Tel Aviv area (including Bat Yam) leading the way, up 29% compared to August 2024, following a 32% increase the previous month.

At the city level, Tel Aviv, Bat Yam, and Beit Shemesh — which all saw sharp declines in new-home sales earlier this year — are now showing strong growth in second-hand activity. Yet, these cities also hold a high number of unsold new apartments: 10,200 in Tel Aviv, 4,300 in Bat Yam, and 2,800 in Beit Shemesh, according to July data from the Central Bureau of Statistics.

Sharp Declines Among Investors and Foreign Buyers

Investor activity continued to weaken in August, with purchases totaling 1,099 apartments, down 10% from August 2024. Investor sales reached 1,242 units.

Foreign buyers, a sub-group within the investor segment, purchased only 117 apartments in August — a steep 28% drop from the same month last year and a 10% decrease from July 2025.

First-time buyers purchased 4,571 apartments in August — a 6% annual increase and a modest 3% monthly rise. However, excluding subsidized deals, free-market purchases in this segment totaled 3,511 apartments — down 3% year-over-year and 5% from July.

Home upgraders bought 1,962 homes — unchanged from August 2024 but 17% lower than the previous month.