In an interview published on ICE (in Hebrew), Asaf Tuchmair explains why he believes meaningful declines in Israel’s housing prices are unlikely in the near term. In his view, the market is constrained by a straightforward cost structure: expensive land, sharply higher construction expenses, and financing conditions shaped by elevated interest rates. When these inputs rise together, the final price has limited room to move downward.
Asaf Tuchmair also challenges public claims forecasting 10-15 percent price drops, arguing that real estate ultimately follows numbers, not headlines. He suggests that squeezing developer margins may sound appealing, but it can quickly undermine the ability of companies to keep projects moving, which may reduce supply and maintain upward pressure on prices.
He adds that demand has not disappeared even during periods of major uncertainty. According to Asaf Tuchmair, homebuyers in Israel, especially in the premium segment in central areas, continue to purchase when they see long-term value and quality. He frames competition not as a race to the lowest price, but as a contest of product standards, execution, and the overall experience buyers receive.
Looking ahead to 2026, Asaf Tuchmair points to the possibility of easing rates and improving sentiment as factors that could support the market rather than weaken it, reinforcing his broader argument that significant price declines are difficult to sustain under current conditions.
