The Israeli residential market has been undergoing a profound change in recent years, one that is not always reflected in the headlines. Alongside a slowdown in traditional development, rising interest rates, and the continued increase in land and construction costs, one model is gradually returning to the center stage: Purchase groups. Not as a marginal or isolated move, but as a mechanism attracting more and more buyers, land, and financing solutions.

Data presented by Ruby Capital for 2026 clearly illustrate the trend: Financing is expected for approximately 4,000 housing units within purchase groups – a jump of about 160% compared to 2025. This is a level of activity that repositions the sector as one of the most prominent growth engines in the residential market, especially in a period of uncertainty and stagnation in other sectors.

Why the Model is Returning Now

Behind the numbers is a combination of circumstances: Private buyers seeking cost savings and planning flexibility; developers struggling to operate in the traditional model; and planning authorities reintroducing tools that were neglected in the past. Thus, after years in which purchase groups almost disappeared from state tenders, the renewed approval by the Israel Land Authority for groups to participate in regular development tenders has led to a sharp increase in activity, including significant wins in the Sde Dov complex in Tel Aviv.

According to Gil Gefen, Head of the Purchase Groups Division at Ruby Capital, three main types of groups can now be identified: Groups of private buyers joining forces to compete in tenders; groups organized around developers or professional entities that locate land and recruit buyers; and groups of private landowners, sometimes historic landowners, uniting for joint construction. This phenomenon is particularly noticeable in multi-owner complexes such as the Alef complex in Rishon Lezion, western Bat Yam, and looking ahead also in Sde Dov, Tchelet Beach in Herzliya, and the Glilot district.