Jerusalem is facing an unprecedented glut of unsold new apartments, with roughly 10,000 housing units currently sitting on the market, according to The Marker. In response, the municipality has launched an aggressive campaign aimed at attracting buyers from Jewish communities abroad.
Mayor Moshe Lion and city officials are reportedly promoting Jerusalem as a prime destination for Diaspora Jews seeking either investment properties or future residences, as developers struggle with slowing demand and rising inventories.
The city’s housing market has become increasingly dependent on foreign buyers at a time when local residents face high interest rates and mounting affordability challenges. Large-scale construction projects approved in recent years have significantly expanded supply, but sales have failed to keep pace.
Industry figures warned that the growing inventory of unsold apartments is putting pressure on developers and could eventually force price reductions or changes in marketing strategies. Some developers are already offering incentives and flexible financing arrangements to attract purchasers.
Jerusalem’s municipality sees overseas Jewish communities as a key potential market, particularly affluent buyers from North America and Europe who may be interested in second homes, investment opportunities, or relocating to Israel in the future.