Amram stopped selling discounted apartments - and revenues were cut by 50%

The company Amram Avraham has set itself a goal in recent years - to sell over a thousand apartments a year. In 2020-2022 it managed to grow, but the momentum shifted last year and the pace decreased as interest rates rose. Although its sales include apartments under the 'Mechir Lemishtaken' (Price for the Resident) framework, selling apartments in this period remains challenging. How many apartments did it sell since the beginning of the year and are its financial figures for the second quarter satisfactory?

Amram sold 199 housing units during the second quarter of 2026, but its forecast is less optimistic. According to the company's report, there has been a certain moderation in the pace of sales in the free market recently, against the backdrop of ongoing security uncertainty and macroeconomic conditions. "These factors affect, among other things, the timing of purchasing decisions by buyers and investors. The company continues to monitor market developments and adapt its marketing and sales activity to changing conditions," it notes. The company also admitted to a sales slowdown in its first-quarter report.

In the last six months, 312 apartments were sold, compared to 846 apartments last year. The financial volume from apartment sales was cut by about 50% — from 1.35 billion shekels to 663 million shekels in this half-year. For context, the company sold 644 apartments last year.

However, looking at sales in the free market, the picture is different: the company sold 120 apartments compared to 73 in the corresponding quarter, and 225 apartments in the half-year compared to 259 last year. Thus, Amram's slowdown is mainly due to a sharp drop in sales under the 'Mechir Lemishtaken' framework. The company continues to sell to the free market at a steady pace, but the figures from the 'Discounted Apartment' framework are impacting its overall performance.

The company is awaiting the Governor's decision and future forecasts. It holds loans with prime interest rates amounting to 4.365 billion shekels. According to its assessment, a 0.5% change in interest rates is expected to bring about a 21.8 million shekel change in financing expenses.

Regarding the risk of deal cancellations, the company states this exposure is moderate, given that in 2025 and the first half of 2026, the rate of non-flexible contracts stood at about 52% of total contracts. The company paid about 5 million shekels in mortgage subsidies to attract buyers to sales offices.

The company explains: "The decrease in the number of units sold stems mainly from a lower volume of sales within government housing programs, resulting from the timing of projects being released for marketing, and does not reflect a similar decrease in the company's activity in the free market. In the free market, the company sold 225 housing units in the first half of 2026, compared to 259 units in the corresponding period last year, a moderate decrease of about 13%. However, in the second quarter of 2026, 120 units were sold in the free market, compared to 73 units in the corresponding period last year, an increase of about 64% compared to 105 units in the first quarter of 2026."