As 2025 draws to a close, we want to take a moment to reflect on the year’s Modiin Real Estate market and give some projections for the year ahead.
It was a challenging year for the real estate market in Israel. The combination of the continued war, the high interest rates, the economic uncertainty, and more recently the dollar-shekel exchange rate – all created a stalled market.
Ordinarily, when it becomes a buyer’s market (caused by increased inventory and decreased demand) the active buyers manage to find some good deals and move ahead with home purchases. However, the current situation found buyers in a ‘wait-and-see’ position whereby they were expecting prices to further go down and therefore even competitively priced homes sat for longer than normal. With many buyers on the fence waiting for prices to go down and hoping that interest rates will also fall, the market halted.
As a result of the precarious market conditions, more and more deals in the real estate world in 2025 were created as ‘back-to-back’ deals – whereby a seller would first line up a buyer for their home at their price; and then they would try to find a place to buy before signing on the sale. In this environment, one shift in the chain would lead to multiple deals falling through, and this tended to happen quite a lot; which further led to buyer uncertainty as even homes they were ready to move ahead with often did not reach completion.
In terms of numbers, the number of deals in Modiin dropped by about 30% compared to 2024:
- First-hand sales (meaning new apartments from developers) in 2025 were 154 (compared to 205 in 2024)
- Second-hand sales (meaning previously owned homes) in 2025 were 473 (compared to 687 in 2024)
The most expensive property that sold in 2025 was in Buchman for 8,000,0000; and the area with the most sales was Cramim.
So what do we expect in 2026?!...
Firstly, the rise in antisemitism that was expected to lead to a bump in aliya is starting to come into effect. More families are accelerating their plans to move to Israel; and while many of these olim are focused on renting when they first move, many are considering buying homes to they can arrive and have a sense of stability.
Further, while this year there were many first hand sales in Modiin, there are no big new projects slated for 2026 so the number of kablan sales will be limited, and that will place a greater strain on the second-hand sales. As a result, while the prices are currently competitive and have even gone down a bit – by the middle of the year we expect that the prices will start to edge back up due to the limited supply.
Plus, we saw the first drop in interest rates at the end of 2025 and we expect there will be further drops in the interest rate which will lead to more buying capacity.
However, many economists predict that the dollar will continue dropping towards 3 (it currently stands at 3.18 shekels to a dollar) which will impact international buyers.
If you are thinking of buying – all signs point to this being a great time to be a buyer in Modiin. The environment will shift in the coming months so this is a good opportunity to capitalize on some competitive deals and a great time for house-hunting as there are more properties out there than normal. 