(Explained like you are five, but fully detailed for adults)
Imagine you go to a toy store and the toys are not selling fast.
The store owner wants people to buy, so he gives special bonuses:
Buy this toy and you get stickers.
Buy this toy and you can pay later.
Buy this toy and you get candy.
This is exactly what is happening now in Israel’s real estate market… but with apartments instead of toys.
Developers are trying hard to make people buy new apartments, so they are giving very big gifts and benefits.
This guide explains every type of special offer, why it exists, what it really means, and how buyers should think about it.
Why Developers Are Offering These Deals
Right now, many people are scared to buy homes.
Why?
Because interest rates are high
Interest is the extra money you pay the bank every month.
When interest is high, mortgages become expensive.
Because fewer people are buying
If fewer people buy apartments, developers have empty buildings.
Because developers need cash to finish projects
Developers only get most of their money when people buy.
If no one buys, the developers can get stuck.
So developers started offering big incentives to restart demand and make buyers feel comfortable again.
The Main Incentives Developers Are Offering
Explained simply, but with full detail
1. Interest-Free Loans
Example (illustrative, as reported in the market): some developers — for instance Azorim — have advertised interest-free buyer loans of up to about one million shekels over long terms. Always confirm the exact, current terms directly with the specific developer.
Imagine someone gives you one million shekels and says:
“You do not have to pay extra. You do not have to pay more later. You only pay back what you took.”
This is an interest-free loan.
Why this matters:
- Most loans cost extra because of interest.
- A ten-year interest-free loan is extremely rare.
- It makes the apartment feel cheaper because the monthly payments shrink.
- It also helps people who want to buy but cannot afford a huge mortgage now.
What it really means:
Developers are basically acting like a bank.
They give you money with no cost because they want you to buy the apartment today.
2. Guaranteed Returns for Buyers
Example (illustrative, as reported): some developers have offered roughly a 5 percent yearly return on the down payment until the apartment is ready. Confirm the exact current terms with the specific developer.
Imagine you give a developer 300,000 shekels as part of your down payment.
The developer says:
“While you wait for your apartment to be built, I will pay you 5 percent every year.”
Why this matters:
- It turns your down payment into an investment.
- Instead of your money sitting still, it grows every year.
- It makes the project more attractive and reduces the stress of waiting.
What it really means:
Developers know buyers are scared of long waiting times.
So they pay buyers money every year to keep them calm and committed.
3. Developers Covering Mortgage Payments
Example (illustrative, as reported): some developers have offered to cover the first year of mortgage payments on certain projects. Confirm the exact current terms with the specific developer.
Imagine you buy an apartment and someone else pays your monthly mortgage for twelve whole months.
That is a huge amount of money saved.
Why this matters:
- It makes the first year of owning the apartment much easier.
- Buyers who are tight on cash can suddenly afford the deal.
- It reduces the fear of starting a mortgage during tough financial times.
What it really means:
Developers are basically saying:
“Let us pay your mortgage for a year. Just buy the apartment now.”
This shows how much developers need sales.
4. Covering Rent While You Wait
Some developers even say:
“We will pay your rent until your new apartment is ready.”
Imagine you live in a rental and are waiting for your new home.
Instead of paying rent plus buying a home, the developer pays your rent for you.
Why this matters:
- Saves a lot of money every month.
- Removes the pressure of paying rent and mortgage at the same time.
- Helps families who want new apartments but are scared of the overlap period.
What it really means:
Developers want the contract signed now, even if the project is far from finished.
5. Free Upgrades and Extras
Some developers offer bonuses such as:
- Better kitchen
- Nicer flooring
- Smart home systems
- Extra storage room
- Extra parking space
These upgrades normally cost tens of thousands of shekels.
The developer gives them for free to sweeten the deal.
Why this matters:
It makes the buyer feel like they are getting more value without paying more.
What it really means:
Developers prefer giving upgrades instead of lowering the price because:
- Upgrades cost them less than the buyer thinks
- The official price of the apartment stays high
- It protects future valuations of the project
Why These Incentives Are Appearing Now
The Real Reason Behind Everything
Developers are offering massive benefits because the market slowed down.
When interest rates rise:
- Mortgages become expensive
- Buyers wait
- Sales drop
- Projects get stuck
When sales drop:
- Developers do not get cash
- Banks pressure them
- Construction slows
- Deadlines get pushed
- Risk increases
So developers give creative financial gifts to encourage buyers to take action.
These incentives are not signs of generosity.
They are signs of market pressure.
But for the smart buyer, they can be excellent opportunities.
What Buyers Should Think About
Before Accepting These Offers
Imagine someone gives you a free ice cream but the store is on fire.
You need to check the store first.
Same with these deals.
The gift is great, but you must check the project.
Here is what to check:
1. Is the developer strong financially?
A weak developer offering big gifts can be risky.
2. What is the real cost?
Even if the loan is interest-free, check:
- Payment schedule
- Contract conditions
- Future risk
3. When is the delivery date?
A delay of one year can completely change your finances.
4. Is the incentive temporary?
Some incentives disappear if you cancel the deal.
5. Do not buy only because of the gift
A free mortgage year does not fix a bad location.
What These Deals Tell Us About the Market
These incentives show that:
- Developers need buyers
- Buyers have power
- Prices may be flexible
- Banks are pressuring developers
- The market is adjusting after several years of extreme demand
This is not a crash.
It is a correction.
And in corrections, developers become extremely creative to move inventory.
Should You Buy Because of These Incentives?
The answer depends.
Good reasons to buy:
- You love the location
- You need a home
- The developer is strong
- The incentive truly saves you money
- The price makes sense
Bad reasons to buy:
- The gift looks shiny
- The loan makes it look cheap but the price is high
- The project is risky
- You do not need a home
- You are rushing because of fear
Always remember:
The incentive is the decoration.
The apartment is the meal.
The decoration cannot replace the meal.
Final Thoughts
This Is a Rare Moment in the Market
Israel almost never sees incentives this large.
Interest-free loans of up to one million shekels, guaranteed returns, and developers paying mortgages is extremely uncommon.
This is a unique window where buyers can negotiate and receive benefits that would be impossible in a hot market.
To explore current new developments, see our new projects in Israel page.
Have a specific requirement? Send us your details and the Semerenko Group team will get back to you.
The 2026 backdrop, in numbers
Why are developers suddenly offering so much? The macro picture explains it:
- The Bank of Israel benchmark rate stood at 3.75% from 25 May 2026, after a run of cuts – borrowing is still far costlier than in the 2021 cycle.
- New-home prices were down about 3.8% year on year, and roughly 86,290 new apartments sat unsold at the end of January 2026 (about 31 months of supply, CBS).
- The Bank of Israel tightened the rules on aggressive 20/80, 90/10 and balloon-style developer financing through end-2026 – a sign the regulator treats these deals as risk-shifting, not simple generosity.
Dig deeper: unpublished concessions, distressed-developer deals, and whether the financing changed since launch.
