Home prices in Israel rose sharply in November and December, continuing an upward trend after eight consecutive months of decline earlier in the year, according to the most recent information available from the Central Bureau of Statistics.

The housing price index increased by 0.8% in December compared to the previous month, the second month of gains after Israel reached a ceasefire agreement with Hamas in October. Over the past 12 months, home prices have risen by a total of 0.4%.

The housing market had slowed throughout most of 2025, partially in reaction to the multifront war Israel has been engaged in since Hamas invaded southern Israel on October 7, 2023. High interest rates, a record supply of unsold new housing, and high prices have also helped to tamp down sales. The shekel’s strength against the dollar, currently near a four-year high at NIS 3.12, is also affecting demand from overseas buyers.

Tel Aviv led the regional increases with a 2% jump in prices during the period. Other regions also saw gains, including the southern district (1%), Jerusalem (0.4%), the northern district (0.4%), and Haifa (0.3%). Prices in the central region remained unchanged.

Over the past 12 months, prices have risen by 9.6% in Jerusalem, 4.8% in the north, 1.4% in the south, and 0.7% in Haifa. Prices declined by 3.1% in the central district and 1.9% in Tel Aviv.

The national average price for a home in the fourth quarter of 2025 reached NIS 2,362,900 (approximately $656,000), representing a 1.8% increase from the third quarter. Tel Aviv remains the most expensive market, with an average dwelling price of NIS 3,360,600 ($1.07 million).

A record 86,090 new homes remained unsold at the end of December 2025, CBS noted in a separate report.

According to Finance Ministry data for December, 8,526 transactions were recorded during the month, a 24% drop compared to the same month the previous year. Volume rose 16% from November, a common trend as developers push for sales before closing annual financial reports.

New home sales in December reached 3,496 units, a 41% drop from December 2024. Economists noted that buyers rushed to close deals late last year before the VAT rose in January 2025.

Investor activity continues to cool, with 1,518 apartments purchased for investment in December, a 20% year-over-year decrease. In the same period, investors sold 1,159 apartments, a 30% year-over-year decline.

For the full year, total real estate transactions in Israel fell 11% from 2024 to 84,879, the Finance Ministry said. The secondhand market remained relatively stable with a marginal 0.6% increase, while new home sales plummeted by 25% compared to the previous year.

To provide the housing snapshot below, we used the Israel Tax Authority’s database, which records the actual prices paid for properties. The focus is on sales over the last month to present the most up-to-date picture of the market.

In Tel Aviv, a three-room (two-bedroom) apartment on Amos Street 36 sold for NIS 4,075,000 ($1,322,000). The apartment measures 64 square meters (689 square feet) and is located on the third floor of a three-story residential building constructed in 1960.

A three-room (two-bedroom) apartment at 15 Einstein Street sold for NIS 5,560,000 ($1,784,680). The apartment measures 83 square meters (893 square feet) and is located on the fifth floor of a 14-story residential building constructed in 2023.

A three-room (two-bedroom) apartment at Sderot Yad LaBanim 23 sold for NIS 2,440,000 ($783,205). The apartment measures 65 square meters (700 square feet) and is located on the second floor of an eight-story residential building constructed in 1960.

In Jerusalem, a five-room (four-bedroom) apartment at 4 Avner Gershon Street sold for NIS 3,190,000 ($1,023,940). The apartment measures 107 square meters (1,152 square feet) and is located on the eighth floor of a 12-story residential building constructed in 2016.

A four-room (three-bedroom) apartment at 22 Iceland Street sold for NIS 3,025,000 ($970,981). The apartment measures 68 square meters (732 square feet) and is located on the first floor of a three-story residential building constructed in 1960.

A four-room (three-bedroom) apartment at 16 Harav Toledano Street sold for NIS 3,300,000 ($1,059,250). The apartment measures 99 square meters (1,065 square feet) and is located on the sixth floor of an eight-story residential building constructed in 2021.

In Beit Shemesh, a four-room (three-bedroom) apartment at 24 Ben Ish Chai Street sold for NIS 2,415,000 ($775,180). The apartment measures 107 square meters (1,152 square feet) and is located on the first floor of an eight-story residential building constructed in 2008.

A three-room apartment at 43 Sderot HaAmoraim sold for NIS 2,140,000 ($693,454). The apartment measures 92 square meters (990 square feet) and is located on the sixth floor of a seven-story residential building constructed in 2022.

In Haifa, a five-room (four-bedroom) apartment at 4 Harav Arieh Levin Street sold for NIS 2,050,000 ($664,290). The apartment measures 115 square meters (1,238 square feet) and is located on the third floor of a six-story residential building constructed in 2011.

The database of the real estate website Madlan was used to compile this sample of rental apartments on the market with a focus on three-room (two-bedroom) properties, suitable for a couple, two roommates, or a small family. 

In Tel Aviv, a three-room apartment on Arlozorov Street 182 is available for rent at NIS 7,500 ($2,430) per month. The apartment measures 100 square meters (1,076 square feet), and is located on the third floor.

A three-room apartment on Margosa Street is available for rent at NIS 9,200 ($2,985) per month. The apartment measures 75 square meters (807 square feet), and is located on the second floor.

In Jerusalem, a four-room (three-bedroom) apartmenton Tel Hai Street 4 is available for rent at NIS 8,200 ($2,660) per month. The apartment measures 85 square meters (915 square feet), and is located on the second floor.

A four-room (three-bedroom) apartment on Ben Tzvi Street 27 is available for rent at NIS 9,200 ($2,985) per month. The apartment measures 92 square meters (990 square feet) and is located on the first floor of a new building.

In Haifa, a five-room (four-bedroom) garden apartment on Lincoln Street 1 is available for rent at NIS 5,600 ($1,815) per month. The apartment measures 105 square meters (1,130 square feet) and is located on the ground floor.

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