Housing snapshot: Home sales and rentals across Israel in August 2025

Home prices in Israel fell in May and June for the fourth month in a row, as sales data reflected the impact of Israel’s 12-day war with Iran for the first time.

The housing market has cooled in recent months, partially in reaction to the multiple wars Israel has been engaged in since Hamas invaded southern Israel on October 7, 2023. Prices have fallen by 1.3% in the last four months.

Prices dropped 0.5% in May–June compared to April–May, according to the most recent information available from the Central Bureau of Statistics. That was the biggest monthly drop since January 2024.

Despite the short-term drops, prices have actually risen 2.5% compared to the same period a year ago. Earlier this year, the market’s annual growth had peaked at 7.8%.

Prices during the two-month period rose by 0.7% in Haifa, 0.4% in the north, and 0.1% in the south. They fell by 1.3% in Tel Aviv, 0.9% in the central district, and 0.1% in Jerusalem.

The price of newly built homes fell by 1.5% compared to the previous two-month period, the CBS said.

According to Finance Ministry data for June, a total of 5,844 apartments were sold, the lowest level recorded in the past months and a 29% drop from a year earlier.

New apartment sales, including government-subsidized units, declined by 46% from June 2024 to 1,954 units. For new apartments in the free market, sales were 1,441, a sharp 50% decline compared to June last year. Secondhand apartment sales reached 3,890 units, a decrease of 16% compared to June 2024.

Investors purchased only 847 apartments in June, a 36% decrease compared to June 2024. Investors sold 1,103 apartments, a 24% decrease compared to June 2024.

Besides the war, new Bank of Israel restrictions on financing benefits offered by contractors, which came into effect at the end of March, appear to be a significant factor in the decline of new apartment sales, the Finance Ministry said. These restrictions apply to projects where a significant portion of the price is deferred until delivery, making such financing more expensive for contractors.

However, Bank Hapoalim economists mentioned in a note to investors, the fact that sales of second-hand apartments also fell is a sign that war-related fears are the main reason for the drop in sales volume.

“The real estate market is usually characterized by momentum, and apartment buyers who see a downward trend in prices sit on the fence and wait,” Bank Hapoalim said. “What could change the trend [would be] an event that would change the expectations of households, such as the end of the war or interest rate cuts that increase the purchasing power of buyers.”

Sales

To provide the housing snapshot below, we used the Israel Tax Authority’s database, which records the actual prices paid for properties. The focus is on sales over the last month to present the most up-to-date picture of the market.

In Tel Aviv, a 127-square-meter (1,367-square-foot), five-room (four-bedroom) garden apartment at 14 Elul Street was sold for NIS 2,900,000 ($844,737) on August 7. The apartment is on the ground floor of a two-floor building built in 1940.

A 100-square-meter (1,076-square-foot), four-room (three-bedroom) apartment at 37 Shmuel Tamir Street was sold for NIS 4,370,000 ($1,269,476) on August 10. The apartment is on the first floor of a three-floor building built in 2000 and includes parking for two cars.

A 99-square-meter (1,066-square-foot), four-room (three-bedroom) apartment at 15 Einstein Street was sold for NIS 8,500,000 ($2,474,526) on August 4. The apartment is on the 25th floor of a 30-floor building built in 2023.

In Jerusalem, an 85-square-meter (915-square-foot), four-room (three-bedroom) apartment at 65 Shabtai HaNegbi Street was sold for NIS 2,600,000 ($755,814) on August 7. The apartment is on the third floor of a three-floor building built in 1970.

A 99-square-meter (1,066-square-foot), four-room (three-bedroom) apartment at 20 Horkanya Street was sold for NIS 3,550,000 ($1,032,558) on August 10. The apartment is on the third floor of a six-floor building built in 1970.

A 61-square-meter (657-square-foot), three-room (two-bedroom) apartment at 5 Beit Shearim Street was sold for NIS 3,000,000 ($872,093) on August 4. The apartment is on the third floor of a five-floor building built in 1960.

In Beit Shemesh, a 108-square-meter (1,163-square-foot), four-room (three-bedroom) apartment at 5 Talmud Bavli Street was sold for NIS 2,290,000 ($665,116) on August 1. The apartment is on the first floor of a five-floor building built in 2022.

A 100-square-meter (1,076-square-foot), four-room (three-bedroom) apartment at 15 Abaye Street was sold for NIS 2,465,000 ($716,628) on August 11. The apartment is on the second floor of a six-floor building built in 2018.

In Haifa, a 121-square-meter (1,302-square-foot), five-room (four-bedroom) apartment at 55 Haviva Reich Street was sold for NIS 2,335,000 ($678,488) on August 5. The apartment is on the sixth floor of a ten-floor building built in 2026.

Rentals

The database of the real estate website Madlan was used to compile this sample of rental apartments on the market with a focus on three-room (two-bedroom) properties, suitable for a couple, two roommates, or a small family.

In Tel Aviv, a four-room (three-bedroom) apartment in the North Old City neighborhood is available for rent at NIS 17,000 ($4,514) per month. The apartment is on the fifth floor of a new, high-quality building.

A four-room (three-bedroom) apartment at 28 Eliyahu Beit Tzuri Street in Ramat Aviv Gimel is available for rent at NIS 8,800 ($2,336) per month. The apartment is on the fifth floor.

In Jerusalem, a 4.5-room (three-bedroom) garden apartment at 1 Nili Street in the Rasco neighborhood is available for rent at NIS 9,200 ($2,443) per month. The apartment is on the ground floor.

A 3.5-room (three-bedroom) garden apartment on HaRakevet Street in the German Colony neighborhood is available for rent at NIS 12,000 ($3,187) per month. The apartment is on the ground floor.

In Haifa, a four-room (three-bedroom) apartment at 82 Shoshanat HaCarmel Street in the West Carmel neighborhood is available for rent at NIS 4,950 ($1,313) per month. The apartment is on the ground floor.