Collapse in the real estate market? Africa Israel Residences sold 75% of apartments until the end of 2027

Africa Israel Residences has historically maintained a fast pace of apartment sales. While the company experienced a slowdown last year due to a large backlog cleared in previous years, the latest quarter shows a strong recovery and a positive outlook for the future.

The company concluded the second quarter with a 12% increase in net profit to approximately 23.6 million shekels, maintaining low leverage with a net debt-to-equity ratio of about 44.6%. Data indicates that 75% of apartments scheduled for occupancy in 2026-2027 have already been sold.

During the second quarter, the company sold 71 housing units for 248 million shekels (nearly 3.5 million shekels per apartment, including VAT), an increase from the 63 units sold in the same quarter last year for 192 million shekels. In the first half of the year, the company sold 144 units for 531 million shekels (3.687 million shekels per unit). From the beginning of July until the report's publication, an additional 57 units were sold for approximately 192 million shekels.

Currently, the company has projects under construction or in the pre-construction marketing phase (with delivery by the end of 2031) totaling 3,465 housing units. Of these, 1,346 units (about 39%) have been sold for a total value of 3.9 billion shekels. The gross profit margin from apartment sales remains high at 26%.

The company announced a dividend distribution of 18 million shekels for the second quarter. Revenue for the period reached 247.1 million shekels, a 14% increase year-on-year. Revenue from apartment sales, including equity companies, rose by 11% to 250.3 million shekels.

Equity has grown to 2.02 billion shekels. CEO Ronit Ashed Levy stated: "We are concluding another quarter of growth in net profit and average price per unit, thanks to the public's long-term loyalty to our 'Savyonim' brand. We continue to advance the construction of 2,000 housing units across 18 projects nationwide."

"During the second quarter, we began marketing the 'Heyl HaYam' project in the Bat Galim neighborhood of Haifa. We believe that the end of the war will lead to a resurgence in demand, and we are preparing with an inventory of thousands of apartments in high-demand areas. Simultaneously, we are expanding our rental housing activity, which now includes over 1,300 units. The 'Mordot Arnona' project in Jerusalem has recently entered the occupancy stage," added Ashed Levy.