Israeli Furniture Prices Drop Significantly, Installation Costs Rise
Furniture prices in Israel have seen a substantial real-term decrease of approximately 17% between December 2018 and December 2025, contrasting with a 17.9% rise in the general consumer price index during the same period. This trend is particularly pronounced in categories like tables and chairs, which dropped 19% in real terms, and garden furniture, down 32%. Even consumer electronics, such as televisions, experienced a nominal price drop of about 26% and a real decrease of roughly 37% over the same timeframe.
Several factors contribute to the furniture price decline. A significant regulatory change involved the gradual elimination of customs duties on furniture, which fell from 12% to zero between 2022 and 2025, impacting an annual market worth $7-8 billion. Additionally, a weaker shekel against the dollar (a 25.3% drop) and euro (18.4% fall) has made imports cheaper for Israeli businesses. The concentration of manufacturing in countries like China (66% of lighting fixtures, 54% of chairs) and Italy (18.5% of furniture) further influences pricing.
Conversely, the cost of labor for installing and assembling furniture has increased. The price index for electricians in construction inputs rose by 23.1% cumulatively. In some cases, like basic lighting installations in a new apartment, the electrician's labor cost can exceed the price of the fixtures themselves. Delays in installation also lead to higher costs, with post-painting electrical work being significantly more expensive than during the initial renovation phase.
Consumer spending on furniture and home equipment averaged 660 shekels monthly in 2022, representing about 3.8% of total household consumption. While the gap between the lowest and highest income quintiles is noticeable, it's less pronounced in this category compared to others. The article also highlights consumer protection issues, including misleading pricing on manufacturer websites, limited warranty coverage that excludes many components, and restrictive return policies that can be difficult for consumers to navigate after assembly.
Ultimately, the article suggests that the longevity and durability of furniture, rather than its initial purchase price, may be a more critical factor for consumers. For instance, a higher-priced mattress with a longer lifespan can be more cost-effective per year of use than a cheaper mattress that needs replacement sooner. The price difference between budget and premium sofas is substantial, reflecting variations in materials, construction, and upholstery.
