Despite a noticeable slowdown in Israel’s housing market over the past few quarters, July 2025 saw a surprising surge in mortgage volumes. The question now is whether this signals a true recovery or merely a delayed execution of past transactions. A closer look reveals a complex but encouraging picture.
According to the Bank of Israel, 10,202 mortgage loans totaling 10.7 billion shekels were issued in July — the highest since June 2022, excluding the exceptional month of December 2024. However, the average loan amount remained stable at around 1.047 million shekels, indicating that the increase stems more from quantity than from higher-value deals.
Experts suggest that this spike may result from the delayed closing of earlier transactions, as bureaucratic and financing processes normalize after months of stagnation. Yet, the overall property sales volume remains modest, suggesting that the broader market recovery is still in its early stages.
The improving economic environment, expectations of lower interest rates, and renewed household confidence could, however, drive a gradual rebound by late 2025. International buyers — particularly from France and the U.S. — are already showing renewed interest in new developments.
As always, the Israeli real estate market demonstrates its remarkable resilience. Even in uncertain times, property remains a cornerstone of the national economy and a source of long-term stability.
