Apartment Prices Drop in Herzliya and Ashkelon, Rise Elsewhere
Translated & summarized from Ice by baba
Real estate transactions in Israel are expected to decrease by up to 20% by the end of 2026. However, median apartment prices have risen in Tel Aviv, while falling in only two of 11 surveyed cities: Herzliya, by 13.5%, and Ashkelon, by 3.1%. Tel Aviv's median price increased from 2.725 million to 3.6 million shekels, influenced by luxury and foreign purchases. Other cities also saw price increases, though some, like Beersheba, showed minimal returns for investors.
The story in 6 lines · by baba
- Median apartment prices fell in Herzliya by 13.5% and Ashkelon by 3.1% between 2025 and 2026.
- Tel Aviv's median apartment price increased from 2.725 million to 3.6 million shekels in the same period.
- Overall real estate transactions are projected to decline by up to 20% by the end of 2026.
- Only two out of 11 surveyed Israeli cities experienced a decrease in median apartment prices.
- Beersheba saw a modest 26% price increase over the last decade, with low investor returns.
- Holon's median apartment price rose 36% in the last decade.
The number of real estate transactions in Israel is projected to fall by up to 20% by the end of 2026 compared to 2025, based on current trends. Despite this overall decline in activity, the median apartment price in Tel Aviv has increased. A review of 11 major Israeli cities revealed that only two experienced a decrease in median apartment prices between 2025 and 2026: Herzliya and Ashkelon.
In Herzliya, the median price dropped by approximately 13.5%, from 3.819 million shekels to 3.3 million shekels. Ashkelon saw a smaller decrease of about 3.1%, with the median price falling from 1.5 million shekels to 1.453 million shekels. In contrast, other cities, including Tel Aviv, experienced price increases.
Tel Aviv's median apartment price rose from 2.725 million shekels in 2025 to 3.6 million shekels in 2026. This rise is partly attributed to the significant number of luxury apartment purchases and high-value transactions in central areas, as well as the influence of foreign buyers. The article clarifies that the median price, unlike the average price, reflects the midpoint of all transactions, with half above and half below it, thus offering a more accurate picture of the market.
Previous analyses by the Chief Economist's office indicated weakness in Beersheba and Ofakim. Over the past decade, Beersheba saw a modest price increase of 26%, while Holon experienced a 36% rise. However, the article suggests that even these increases in Beersheba may not have provided a real return for investors after accounting for inflation and additional costs, with some buyers potentially losing money.
