Israeli Housing Market Shows Mixed Trends in Early 2026

Israel's real estate market experienced divergent trends in the first half of 2026, with the average price of a sold apartment nationwide rising 3.9% to 2.39 million shekels compared to the same period last year, according to data from the Central Bureau of Statistics. However, this national average masks significant regional disparities. Of the 18 largest cities, nine saw price increases, six experienced decreases, and three remained stable.

Tel Aviv continued to lead price growth, with average apartment prices reaching 4.45 million shekels, a 6.6% increase. Ashdod saw a 6.1% rise to 2.17 million shekels, Rehovot increased by 5.1% to 2.69 million shekels, and Kfar Saba grew by 4.9% to 2.93 million shekels. Moderate price increases were also noted in Haifa, Beit Shemesh, Netanya, Holon, and Be'er Sheva. Jerusalem, Rishon LeZion, and Bnei Brak saw prices remain largely unchanged.

The most significant price drop occurred in Bat Yam, where apartments fell 3.1% to an average of 2.24 million shekels. Smaller declines were recorded in Hadera, Ashkelon, Herzliya, Ramat Gan, and Petah Tikva.

A notable trend was the accelerated price increase for smaller apartments (one to two rooms), which rose 8.3% to an average of 1.72 million shekels, driven by high buyer demand. Larger apartments (five and a half rooms or more) saw a more modest 1.9% increase, reaching an average of 3.57 million shekels.

Real estate experts suggest that official statistics may not fully capture the market dynamics, as they don't account for developer incentives like financing programs and discounts. Appraiser Aryeh Kamil noted that the actual price trends could differ when these factors are considered. He also pointed out that price increases in some cities might be skewed by sales of premium properties or new coastal developments. The real estate community also observes that buyers are more discerning and sensitive to borrowing costs, leading sellers of overpriced properties to offer concessions.