New Israeli Housing Index Shows Decline in Second-Hand Apartment Prices

Israel's Central Bureau of Statistics (CBS) has officially launched a new index for second-hand apartment prices, aiming to provide a more accurate reflection of the real estate market. The initial data reveals a cooling trend, with prices of existing homes dropping by 1.2% in the second quarter of 2026 compared to the first quarter.

The most significant price decreases were observed in the central regions of the country. Jerusalem led with a sharp 2.9% fall in second-hand apartment prices, followed by Tel Aviv with a 2.0% decline. These drops were steeper than the national average.

The new index was developed in response to growing criticism that the general housing price index did not accurately represent market conditions. In recent years, aggressive financing deals offered by developers for new apartments, such as "80/20" schemes or exemptions from construction input indexation, have made it difficult to measure the true cash value of properties. Dr. Doron Segev, head of housing at the CBS, explained that the second-hand market index is advantageous because it is free from the influence of such financial incentives, as private sellers do not offer similar benefits.

To ensure data reliability and minimize statistical volatility, the CBS will publish the second-hand apartment price index quarterly, rather than monthly. The index will be released in March, June, September, and December. This quarterly frequency ensures a sufficient number of transactions for each measurement, particularly at the district level. Furthermore, the index is released with a one-month delay after the quarter ends to allow for the collection and weighting of all completed private market transactions.

This initiative is part of broader efforts by the CBS to improve real estate market data, including the introduction of an annual land price index and a separate index for new apartments.