Israeli Housing Prices Show Mixed Trends in Early 2026
Translated & summarized from Ynet by baba
Housing prices in Israel during the first half of 2026 showed a mixed national trend, with Tel Aviv leading price increases and Bat Yam experiencing the largest drops. Smaller apartments saw the biggest price gains, while mortgage lending significantly increased.
The story in 5 lines · by baba
- Tel Aviv led housing price increases in early 2026, while Bat Yam saw the largest declines.
- Smaller apartments (1-2 rooms) experienced the highest price growth nationwide.
- The national average housing price remained higher than the previous year.
- Mortgage lending saw a significant 13.8% increase since the start of 2026.
- Real estate experts suggest underlying price drops may be masked by incentives.
Israel's Central Bureau of Statistics is set to release its housing price index for July-August, which will now include a quarterly second-hand apartment price index broken down by district. Analysis of preliminary data for the first half of 2026 indicates a mixed trend in housing prices across major Israeli cities. While the national average price remained higher than the previous year, some cities experienced price drops.
Tel Aviv saw the most significant price increases, with an average apartment price of approximately 4.45 million shekels in the first half of 2026, a 6.6% rise compared to the same period in 2025. Ashdod also recorded a substantial increase of 6.1%, reaching an average of 2.172 million shekels. Other cities like Rehovot, Kfar Saba, and Haifa also reported price hikes.
Conversely, Bat Yam experienced the sharpest decline, with average prices falling by 3.1% to 2.24 million shekels. Hadera, Ashkelon, Herzliya, Ramat Gan, and Petah Tikva also saw price decreases. Herzliya, the second most expensive city after Tel Aviv, recorded a 0.9% drop in average prices.
The data also revealed that smaller apartments (1-2 rooms) saw the largest price increase nationwide, rising by approximately 8.3% to an average of 1.72 million shekels. Larger apartments also saw moderate increases.
Real estate appraisers noted that while official data shows mixed trends, underlying price drops may be masked by developer incentives. They attribute Tel Aviv's rise to luxury and boutique apartment sales, Ashdod's growth to development initiatives, and Rehovot's potential to urban renewal and infrastructure projects. Meanwhile, mortgage data shows a significant 13.8% increase in housing loans taken out since the start of 2026, indicating a strong credit market seemingly detached from the physical real estate market's fluctuations.
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