Dor Neuman, co-owner of Ahuza company, appears on Channel 10 Economics: This is how the housing market looks from the inside in 2025

This week, Dor Neuman was a guest on the main panel of Channel 10 Economics for an in-depth discussion on the state of the real estate market in Israel. During the conversation, three key topics shaping the market today were analyzed: the slowdown in transactions, the state of the urban renewal sector, and the expected impact of establishing the NVIDIA campus in the north. Real Estate in Haifa

Courtesy of Channel 10 Economics

What is behind the Slowdown in Purchases and why Prices Behave Differently in each Region

The real estate market in Israel presents a complex picture. On one hand, there is a sharp decline in the number of transactions, while on the other hand, prices are not falling significantly. High interest rates, instability, and the difficulty of making financial decisions are causing many buyers to wait. At the same time, a large gap has emerged between different regions of the country.

In the center and Gush Dan area, a decline in demand and even a moderate decrease in prices has been recorded. After years of sharp increases, prices have reached a level that is difficult for buyers to afford. High interest rates make it difficult for many households and create a natural halt in the market.

Despite this, developers are hardly lowering prices. The main reasons for this are restrictions from lending banks, rising construction costs in recent times, and low profit margins in new projects. Additionally, apartment buyers in Tel Aviv and the center are forced to move to smaller apartments in order to stay close to employment areas.

The South Weakens and Haifa Strengthens

In the south of the country, price decreases are recorded due to a large supply of land and extensive construction. Large projects and programs like “Buyer’s Price” have significantly increased supply, and therefore prices are consistently declining.

In Haifa, the opposite process is occurring. Prices are rising due to limited land supply, natural planning constraints, and northward population movement. Haifa continues to attract young families seeking a combination of quality of life, academia, employment, and more accessible prices compared to the center.

Expected Interest Rate Reduction and its Impact on the Market

When interest rates drop again, the market is expected to gradually awaken. The second-hand market will be the first to respond, thanks to accessible prices and high availability. Subsequently, an increase in demand for new apartments is expected, where inventory is lower and may again create pressure for price increases.

Urban Renewal and Rehabilitation of War-Affected Areas

The new law for rehabilitating areas affected by the war emphasizes the use of urban renewal as a central tool for rehabilitation. The law includes the possibility of reducing the required majority for tenant consent to 51 percent and aims to shorten lengthy processes that currently last many years.

Will this actually happen in practice? Dor Neuman emphasizes that this is a correct step, but the implementation in the field will determine whether real acceleration occurs.

NVIDIA’s New Campus in Kiryat Tivon and its Impact on the North

The establishment of the NVIDIA campus in Kiryat Tivon could be a significant turning point for the north. A technological center of this magnitude is expected to attract engineers, high-tech professionals, and young families. The move will affect housing prices not only in Tivon, but also in Haifa, the Krayot, and neighboring authorities.

Beyond new employment, infrastructure upgrades, environmental development, and increased demand for housing are expected. Investors who act in the area now may benefit from future growth.

Additional source: Central Bureau of Statistics

Last updated: April 2026