Israeli Housing Prices Show Mixed Trends in First Half of 2026
Translated & summarized from Vesty by baba
The average price of an apartment sold in Israel rose 3.9% in the first half of 2026 compared to the previous year, reaching 2.392 million shekels. However, price trends varied significantly by city, with Tel Aviv and Ashdod seeing increases while Bat Yam experienced the largest decrease. Smaller apartments saw the highest price growth.
The story in 5 lines · by baba
- Average Israeli apartment price increased 3.9% in H1 2026.
- Price trends varied significantly across Israeli cities.
- Tel Aviv and Ashdod saw the largest price increases.
- Bat Yam experienced the sharpest housing price decline.
- Smaller apartments saw the highest price growth nationwide.
The average price of a sold apartment in Israel during the first half of 2026 was 2.392 million shekels, a 3.9% increase from the same period in 2025 when the average was 2.303 million shekels. This analysis by Ynet, based on data from the Central Bureau of Statistics (CBS) for January-June 2026, reveals significant regional variations across the country.
Out of 18 cities examined, nine saw average price increases, six experienced decreases, and three remained largely unchanged. Tel Aviv and Ashdod recorded the most substantial price growth, while Bat Yam saw the sharpest decline. Tel Aviv remains Israel's most expensive city, with average apartment prices reaching 4.45 million shekels in early 2026, up 6.6% from the previous year. Ashdod followed with a 6.1% increase, and Rehovot saw a 5.1% rise.
Conversely, Bat Yam experienced the largest price drop of 3.1%, with average apartment prices falling to 2.24 million shekels. Hadera saw a 1.3% decrease, and Ashkelon a 1% drop. Herzliya, the second most expensive city, registered a 0.9% decrease, and Ramat Gan saw a 0.8% decline.
Smaller apartments, specifically those with one to two rooms, experienced the most significant price increase at 8.3%, reaching an average of 1.72 million shekels. Apartments with 2.5 to 4 rooms saw moderate increases of 3.2% and 2.8% respectively, while larger apartments with 4.5 to 6 rooms had the smallest growth rates, between 1.9% and 2.3%.
Real estate appraiser Ariye Kamil noted that official data may not fully reflect developer incentives and financing programs, suggesting that underlying prices might be declining when these factors are excluded. He attributed Tel Aviv's price surge to sales of premium apartments in desirable areas, while Ashdod's growth is linked to new construction and coastal development. Doron Katz, a Herzliya real estate agent, stated that the market is shifting in favor of buyers, who are more price-sensitive and less rushed, leading sellers to offer concessions.
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