West Bank Housing Market Surges Amid National Slump

The housing market in the West Bank (Judea and Samaria) has experienced a significant boom, with 534 new apartments sold between January and June 2026, surpassing the 453 units sold throughout all of 2025. This surge contrasts sharply with the overall national housing market, which has seen a prolonged decline in sales.

The primary driver behind this trend is affordability. A new 115-square-meter apartment in the settlement of Eli is priced at approximately 1.6 million shekels, or about 14,000 shekels per square meter. This is considerably lower than the national average price for an apartment in early 2026, which stood at around 2.33 million shekels, representing a difference of over 700,000 shekels. This price gap makes homeownership accessible to families with limited capital, requiring a smaller down payment and a smaller mortgage.

Beyond sales figures, there's a structural shift in construction. In 2016, low-rise buildings (one to two stories) constituted about 44.1% of active construction in the region, while medium-rise buildings (three to six stories) made up 25.2%. By March 2026, this dynamic reversed, with medium-rise construction rising to 47.1% and low-rise construction falling to 31.2%. This change allows developers to build more units on the same land, reducing per-unit costs and enabling sales at more accessible price points.

The buyer demographic has also evolved. According to Ran Yanai, CEO of C.P. Building Company, the market is no longer driven solely by ideology. A diverse range of young families and those looking to upgrade their homes are moving from Jerusalem, Petah Tikva, Modi'in, and the Sharon region, attracted by community life, open spaces, and the possibility of buying a new home at a price point difficult to find elsewhere.

Improved road infrastructure has also played a crucial role, significantly reducing commute times to employment centers like Petah Tikva. This makes previously remote settlements feel more like suburbs, further broadening their appeal. Despite the growth, the West Bank market remains small in national terms and carries unique risks, including political sensitivity and lower liquidity in the resale market.