Israel's Housing Market Shows Mixed Trends Despite National Price Drop

While national data indicates a 4.9% decrease in the median price per square meter for housing in 2025 compared to 2024, a closer look at individual cities reveals a more complex picture. Out of 59 cities with at least 200 transactions in both years, 41 experienced an increase in median prices per square meter. This suggests the national decline is largely due to a shift in the types of properties sold, rather than a widespread price reduction.

The national median price per square meter fell from 21,101 shekels in 2024 to 20,057 shekels in 2025. However, in cities like Tel Aviv, the median price per square meter rose by 2.7% to 44,554 shekels, and in Haifa, it increased by 1.7% to 19,519 shekels. Conversely, significant price drops were observed in cities such as Lod, where prices fell by 22.7% to 15,083 shekels per square meter, Ofakim with a 28.2% decrease to 8,853 shekels, and Netanya with a 12.5% drop to 23,400 shekels.

Experts attribute the national decrease primarily to a change in the transaction mix. A larger proportion of sales in 2025 involved properties in less expensive areas or smaller units, and there was a decrease in the percentage of transactions in high-priced cities. The share of transactions in cities where the median price exceeded 25,000 shekels per square meter dropped from 43.1% in 2024 to 40.2% in 2025.

This divergence highlights that a single national figure cannot accurately represent the housing market reality for individual buyers in different cities. Factors such as the number of transactions, the type of properties sold (e.g., new apartments, subsidized housing), and their geographical distribution significantly influence local price trends. The overall slowdown in the housing market, marked by fewer sales, particularly in the resale market, further complicates the situation.