Israel's Luxury Real Estate Market Defies Economic Downturn
Israel's "mega-luxury" real estate market is showing remarkable resilience, with a record number of high-value transactions occurring in 2025, even as the broader market experiences a slowdown. A total of 635 deals exceeding 10 million shekels were recorded last year, a 20% increase from the previous record set in 2021. These high-end transactions constituted 0.7% of all real estate deals in 2025, a year marked by approximately 90,000 total transactions, down from about 103,000 in 2024.
The most expensive transaction in the past year (between Rosh Hashanah 5786 and the upcoming Rosh Hashanah 5787) was a 656-square-meter apartment on the 35th floor of Rothschild 10 Tower in Tel Aviv, sold for 106.65 million shekels. Other notable deals include a 530-square-meter duplex in Tel Aviv's Neve Tzedek neighborhood sold for 91.4 million shekels to high-tech entrepreneur Shlomo Kramer, and a villa in Herzliya Pituah purchased for 80 million shekels. In Jerusalem, the highest transaction was a 307-square-meter penthouse sold for 48 million shekels.
Tel Aviv dominates the luxury market, accounting for 60% of all deals over 10 million shekels. Jerusalem follows with 20%, Herzliya with 8%, and the rest of the country with 12%. This concentration has been consistent in recent years. The article attributes the strength of the luxury market to two main factors: foreign residents' purchases, though less significant than in the past, and a substantial wave of purchases in the new Sheva Dov (formerly Dov Hoz Airport) area of Tel Aviv.
In Sheva Dov, 1,030 transactions totaling 7.8 billion shekels have been registered, with an average apartment price of 7.6 million shekels. Despite concerns over soil contamination at the site, hundreds of deals have been made since the issue became public, suggesting buyers are confident a solution will be found. Developers, however, express concern about receiving contaminated land from the state.
Foreign buyers purchased around 1,300 apartments in Israel last year, a figure significantly lower than two decades ago. The median price for their purchases ranged from 4 to 5 million shekels, with only a minority exceeding 10 million shekels. However, an estimated fifth of foreign purchases in Jerusalem and a significant portion of those in Tel Aviv did fall into the higher price bracket. Political and security instability in Israel, coupled with a strong shekel, presents challenges for foreign buyers.
