Israeli Housing Prices Show Mixed Trends Despite National Decline

While national data indicates a 4.9% decrease in the average price per square meter for housing in 2025 compared to 2024, a closer examination of individual cities reveals a more complex picture. Out of 59 cities with at least 200 transactions in both years, 41 actually saw an increase in prices per square meter. This suggests the national drop is not a widespread decline but rather a result of a shift in the types of transactions, with a larger proportion of sales occurring in less expensive areas.

The data from the Tax Authority shows the national average price per square meter fell from 21,101 shekels in 2024 to 20,057 shekels in 2025. However, in cities like Lod, prices dropped by 22.7% from 19,515 to 15,083 shekels per square meter. Ofakim experienced a significant 28.2% decrease, and Netanya saw a 12.5% drop. Ashdod also recorded an 8% decrease.

Conversely, major urban centers like Tel Aviv and Haifa experienced price increases. In Tel Aviv, the average price per square meter rose by 2.7% from 43,368 to 44,554 shekels. Haifa saw a 1.7% increase, and Kiryat Gat reported a 3.7% rise.

Experts attribute the national average decline primarily to a change in the transaction mix, rather than a uniform price reduction across the country. A smaller percentage of transactions occurred in expensive cities, with the share of sales in cities where the average price exceeded 25,000 shekels per square meter dropping from 43.1% to 40.2%. The overall slowdown in the housing market, marked by fewer transactions, further complicates the interpretation of national figures, highlighting the importance of considering city-specific data, property types, and transaction volumes.