Apartment Prices Continue to Fall in Israel
Translated & summarized from Hamal by baba
Apartment prices in Israel dropped by 0.6% in July-August 2026 compared to the previous two months, continuing a downward trend. Annually, prices fell 1.8% year-over-year, marking the longest period of decline in a decade. Most regions saw price drops, with the North experiencing the largest decrease. New apartment prices also declined, with a 0.4% drop in the latest two-month period.
The story in 5 lines · by baba
- Apartment prices in Israel decreased by 0.6% in July-August 2026 compared to the previous two months.
- Year-over-year, apartment prices fell by 1.8% in July-August 2026.
- The current period marks the longest duration of annual price declines in a decade.
- Most regions in Israel experienced apartment price drops in July-August 2026.
- New apartment prices decreased by 0.4% in July-August 2026 compared to the prior two months.
Apartment prices in Israel have continued their downward trend, with a 0.6% decrease recorded in July-August 2026 compared to the previous two-month period of June-July 2026. This figure is preliminary, as more transactions from that time have yet to be reported. Over the past 12 months, the bi-monthly price changes show a consistent pattern of decline, with drops ranging from 0.1% to 1.2% in various two-month intervals.
On a year-over-year basis, the apartment price index fell by 1.8% in July-August 2026 compared to the same period in 2025. This marks the longest period of annual price declines in a decade, surpassing previous drops in 2018 and the latter half of 2023.
Regional data reveals price decreases across most areas in July-August 2026 compared to June-July 2026. The Northern district saw the steepest drop at 1.5%, followed by Tel Aviv at 0.9%, and the Center at 0.7%. Jerusalem experienced a 0.3% decrease, while the Southern district fell by 0.1%. Haifa was the only region to see a slight increase of 0.4%.
Annually, all districts experienced price drops. The Central district saw the largest year-over-year decrease at 2.7%, followed by Tel Aviv at 1.9%, the South at 1.5%, Haifa at 1.4%, the North at 0.8%, and Jerusalem at 0.2%.
New apartment prices also declined by 0.4% in July-August 2026 compared to June-July 2026. The proportion of government-subsidized new apartment transactions increased from 40.0% to 45.8% during this period. Excluding these subsidized deals, new apartment prices fell by 0.8%. Year-over-year, new apartment prices decreased by 0.4% in July-August 2026 compared to the previous year. Over the last five years, new apartment prices have risen 24.3%, compared to a 26.8% increase for all apartments.
