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Housing prices in Israel soar by 5.6% over the past year

Sharpest rise in prices is seen in Jerusalem, followed by Tel Aviv and then Haifa, according to figures from the Central Bureau of Statistics; cost of living also up

Construction site for a new skyscraper in Jerusalem, on April 26, 2021. (Nati Shohat/Flash90)
Construction site for a new skyscraper in Jerusalem, on April 26, 2021. (Nati Shohat/Flash90)

Israeli housing prices have risen 5.6 percent in the past year, according to a new report on the consumer price index released on Tuesday by the Central Bureau of Statistics.

The report, which is released each month, revealed that the price of apartments between February and April this year went up 1% overall — with the biggest rise in Jerusalem. The prices of apartments in Jerusalem during that period went up 1.6% compared to 1.4% in Tel Aviv, 1.2% in Haifa and the North and 0.9% in the center of the country. In the south, prices dropped by 0.6%.

Overall in May, the cost of living in Israel rose 0.4%, according to the report. The biggest increases were seen in fresh fruits (13.7%), clothing (2.4%) and culture and entertainment (1.9%).

Housing prices in Israel have long continued to climb in recent years, and the rising cost of living in the country has fueled a series of protests in Israel over the past decade.

Illustration of construction in Tel Aviv. November 6, 2019, (Miriam Alster/FLASH90)

Sales of homes plummeted to their lowest levels in nearly two decades during the COVID pandemic last year. There were 16,800 apartments bought during the second quarter of 2020, a drop of 27% compared to the same quarter in 2019. But buying rebounded over the summer, and Israelis ended up taking out a record amount in mortgages in 2020 despite the economic mayhem caused by the pandemic.

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