Buying without a down payment? What developers' offers are hiding

Whether you follow the Israeli market from New York, Paris, London, Moscow, Berlin or Buenos Aires, the question is the same: when 85,000 new apartments are waiting for buyers, developers end up inventing ways to sell without lowering their listed price. This week, two of them unveiled payment structures that are making waves. Here's what they really contain, and what a diaspora buyer should check before getting excited.

85,000 new apartments waiting

The inventory was detailed in our article on unsold homes: 85,682 new units at the end of August 2026, according to the Central Bureau of Statistics. In response, developers have multiplied their "financing facilities": according to the Ministry of Finance, they accounted for 30% of new home sales in August, up from 20% in May 2026 (Globes, November 4, 2026).

The Bank of Israel had tightened the rules back in March 2025: project financing where more than 40% of the price is deferred now requires a 150% capital allocation, and developer-subsidized "balloon" loans are capped at 10% of new mortgage loans. Developers have not given up: they are restructuring their offers to comply with the letter of the rule.

Gindi "Big Bang": NIS 900,000 deferred for ten years

Gindi Holdings is offering around 300 units across four projects, half of them in Glil Yam (Herzliya). The buyer pays 20% at signing, then the balance upon handover, minus NIS 900,000 (about USD 289,000). This amount is deferred for ten years after moving in, through a "balloon" loan from Bank Leumi or Mizrahi Tefahot. Gindi covers the interest, and the deferred amount bears neither interest nor indexation for the buyer, provided they pass the bank's creditworthiness check.

Accountant Aviv Rufel (Max Stern Yezreel Valley College) estimates the benefit at around NIS 350,000 (USD 112,500) in present value, using a 5% discount rate. But the principal remains due: repaying it after ten years could increase the monthly payment by NIS 5,900 to 7,100 (about USD 1,900 to 2,280). Our take: this offer mainly suits those expecting a liquidity event in 8 to 10 years and planning to stay in the home long-term. In our view, an independent appraisal and written confirmation that the assistance holds even if the developer runs into difficulties are essential.

Melisron: "Buy new without equity"

Aviv Melisron takes a different approach: the buyer mortgages a property they already own (sometimes a parent's) to finance the down payment, and the company covers the financing costs and interest until delivery. The projects are located in Tel Aviv, Ramat Aviv, Givatayim and Herzliya.

Mortgage advisor Yoni Berliner warns: this structure increases leverage and risk, and refinancing after delivery could be classified as a general-purpose loan, with less favorable terms. For a diaspora investor who already owns a property in Israel or elsewhere, the temptation is real—and so is the need for caution.

"Club" discounts and bulk buybacks

Alongside payment facilities, price reductions also come through conditional discounts. Ynet reported in May 2026 that a campaign (Avisror Moshe & Sons, Cibus club) offered about a 13% discount, up to NIS 700,000 (about USD 225,000). These discounts, subject to club membership, do not appear in the official Central Bureau of Statistics figures: in our view, the published index therefore likely underestimates the real price decline.

The same signal comes from institutional buyers. According to Calcalist (reported by Nadlan Center in June 2026), Gindi is planning a budget of about one billion NIS (around USD 322 million) to buy back unsold units from developers in the center of the country, targeting discounts of about 15% or more. When a major player is aiming for 15%, an individual buyer has good reason to negotiate.

The context: prices falling, rates on hold

Official prices are down 1.8% year-over-year (Central Bureau of Statistics, via the Times of Israel, October 30), and the Bank of Israel kept its rate at 3.25% on October 21; the next decision is due on November 23 (Buy It In Israel). On a loan of one million NIS (about USD 321,500), a 0.25-point rate cut saves roughly NIS 150 per month (USD 48), according to the same source. The shekel is trading around 3.11 NIS to 1 USD. Our articles on prices and on interest rates cover these points in more detail.

What to check before signing

Always compare the "all-inclusive" price with the cash price of an equivalent project. Have the monthly payment calculated for the refinancing stage, not just during the assistance period. Demand in writing what happens if the developer runs into financial trouble. And get your creditworthiness confirmed by the bank before paying anything: the offer depends on its approval. For the basics of the buying process, our ultimate guide to real estate in Israel remains the starting point.

In summary

These offers show that the new-build market has become a buyer's market: the listed price barely moves, but the terms are negotiable. For the diaspora buyer, the challenge is to distinguish a genuine discount from a mere deferral of debt.

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