Real Estate Slump Triggers Wave of Broker Departures in Israel
Israel's real estate sector witnessed a significant wave of broker departures in 2026, with some 3,700 professionals failing to renew their licenses amid a stagnant secondhand housing market.
In 2026, Israel's real estate sector saw a significant wave of departures as roughly 3,700 brokers failed to renew their licenses during the year, according to Ministry of Justice data. While the total number of brokers historically remains relatively stable, the sluggish housing market has pushed many professionals to abandon the field.
Market Slump and License Exits
At the end of last year, a record-breaking 27,142 licensed brokers were registered. Although new applicants continue to join—with 1,560 candidates recently passing licensing exams and awaiting certification upon paying the 1,000 NIS fee—the active broker count has dropped to approximately 25,000. This indicates that while fresh blood enters the industry, thousands of veteran license holders prefer to quit.
The immediate cause for the roughly 8% drop in active brokers is the severe slump plaguing the secondhand housing market, which serves as the core activity sector for real estate brokerages. During the first seven months of the year, the Central Bureau of Statistics recorded just 32,000 transactions, marking the lowest trough since 2023.
Historical Trends and Survival Rates
An analysis of workforce data over the past 17 years reveals a clear correlation between real estate market conditions and the number of active brokers. Between 2009 and 2019, broker numbers grew by 74%, followed by a dip in 2020 due to the COVID-19 pandemic. A subsequent 25% surge pushed figures past 26,000 in 2022, before wartime challenges in 2023 and 2024 triggered another decline.
"During the years of boom and zero interest rates, thousands passed the exam just to hold a license as a backup or side income," explains Itzik Levy, Chairman of the Brokers Association. "When the market shifted, they realized it made no sense to keep paying state fees and simply dropped out of the system."
Ministry of Justice data shows that one-third of new brokers quit within the first year, and over the long term, only about a third manage to survive in the profession. High interest rate environments have further intensified the survival test, requiring complex financial acumen and diligent professional guidance.
Professional Resilience
Levy emphasizes that amateurs lured by the fantasy of easy commissions have been swiftly weeded out. Despite the contraction in total broker numbers, there is no indication that the share of transactions conducted via brokers—estimated at roughly a quarter of all real estate deals—is on the decline, as buyers increasingly rely on certified professionals for complex property data.
