Nahariya Apartment Prices Stable Despite New Construction Competition

A review of 48 second-hand apartment sales in Nahariya, Israel, revealed that prices have remained close to their levels at the beginning of the year, surprising even appraisers. This stability occurs despite a large supply of new apartments in the city, which intensifies competition in the local market. The analysis, which examined transactions reported to the Tax Authority as of November 12, calculated the expected price for each apartment based on its characteristics and prices from January to June of the current year. Of the 48 deals, 29 sold for less than expected, and 19 sold for more. The median difference was a slight 1.9% below the expected price.

According to expert Gastfreund, price comparisons must account for the specific attributes of the apartments sold, as changes in the mix of transactions can skew averages. For instance, if more large apartments or units in cheaper neighborhoods are sold in a given month, the average price can decrease even if individual apartment prices haven't changed. Statistical analysis of monthly data from August and September did not show significant price trends, indicating overall stability rather than a recovery or decline. Gastfreund noted that while individual deals may be higher or lower than expected, the general direction for Nahariya's second-hand apartment market is stability.

Broader data from the Ministry indicates that second-hand apartment prices in Nahariya rose approximately 9% between the first halves of 2024 and 2025. While prices in the first half of 2026 were 2.6% lower than the same period in 2025, this difference was not statistically significant. In comparison, Haifa saw a roughly 3% price increase during the same period. The significant factor influencing Nahariya's market is the substantial volume of new construction, with about 42% of transactions since 2024 being for new apartments. Between August and October, 89 new apartment deals were reported, compared to the 48 second-hand deals analyzed.

Gastfreund stated that sellers of older apartments in Nahariya face considerable competition from new constructions, which prevents prices from rising, though it doesn't necessarily cause them to fall. The analysis excluded new construction sales, so it doesn't reflect changes in those prices. The review included specific examples, such as a 100-square-meter apartment selling for 1.4 million shekels (5% below expected) and a 119-square-meter unit selling for 2.18 million shekels (15.5% above expected). The report also noted some unusual transactions, like a small 36-square-meter apartment selling for 1.84 million shekels and a 72-square-meter unit for less than half a million, which Gastfreund attributed to registration errors or special circumstances not affecting the overall market picture. The analysis is based on reported deals, and future reports may alter the price picture as more data becomes available.