Israel's Luxury Real Estate Market Sees Record Transactions in 2025
Israel's "mega-luxury" real estate market, defined by properties exceeding 10 million shekels, set a new annual record in 2025 with 635 transactions, a 20% increase from the previous peak in 2021. This segment represented 0.7% of all real estate deals that year, a notable figure given the overall market slowdown with approximately 90,000 transactions in 2025 compared to 103,000 in 2024. Tel Aviv dominated these high-value deals, accounting for 60% of all transactions over 10 million shekels, followed by Jerusalem (20%), Herzliya (8%), and the rest of the country (12%).
The highest single transaction recorded for the past year was a 656-square-meter apartment on the 35th floor of the Rothschild 10 tower in Tel Aviv, sold for 106.65 million shekels. Other significant deals included a 530-square-meter duplex in Tel Aviv's Neve Tzedek neighborhood purchased by high-tech entrepreneur Shlomo Kramer for 91.4 million shekels, and a 70 million shekel apartment bought by American billionaire Bill Ackman. Villas in Herzliya Pituah also featured, with sales of 80 million and 59.7 million shekels.
The newly developed Sheva Dov area in Tel Aviv has become a major hub for luxury real estate, with transactions totaling 7.8 billion shekels for 1,030 units. Despite concerns over soil contamination at the site, buyers have proceeded with purchases, anticipating that the significant investment will ensure a resolution. The average price for a unit in Sheva Dov is 7.6 million shekels.
While foreign residents historically contributed significantly to the luxury market, their activity has decreased. In the past year, they purchased around 1,300 apartments, a substantial drop from two decades ago. The average price of their purchases ranged from 4 to 5 million shekels, with only a minority exceeding 10 million shekels. Factors such as political and security instability in Israel and a strengthening shekel have made purchases less attractive for international buyers.
Looking ahead, the market's performance in 2026 is expected to be influenced by political and security conditions, the shekel's exchange rate, interest rates, and global antisemitism. The resolution of the soil contamination issue in Sheva Dov is also seen as critical for the continued success of that development and the broader luxury market.
