Housing snapshot: Home sales and rentals across Israel in March 2025
The Times of Israel’s regular feature on what is happening in the local property market right now
Zev Stub is the Times of Israel's Diaspora Affairs correspondent.
Home prices in Israel continue to rise, with the pace picking up in January, official data shows.
Prices rose 1.2 percent in December 2024 and January 2025 compared to the previous two months, according to the most recent statistics available from the Central Bureau of Statistics. Compared to the same period a year ago, prices have surged 7.7%.
Prices have risen consistently over the past year following a temporary drop after the Hamas invasion on October 7, 2023, sparked the ongoing war in Gaza. A combination of factors — including a longstanding housing shortage, strong population growth, and growing foreign investment — keeps demand high even as the conflict disrupts construction and economic stability.
Prices during the two months rose by 3% in Jerusalem, 1.8% in Tel Aviv, 1.8% in the northern district, 1.1% in the southern district, 0.2% in the central Israel district, and 0.1% in Haifa, according to the data.
The price of newly built homes rose by 1.7% compared to the previous two-month period and 5.4% for the year, CBS said.
According to Finance Ministry data, 7,619 apartments were sold in January, one of the slowest starts to the year of the past decade. Volume was particularly high in December 2024 as buyers hurried to complete their purchases before VAT rose to 18% at the beginning of 2025. Preliminary data indicates that February was also a slow month.
Investors purchased 1,196 apartments in January, 37% less than the previous month. Investors sold 1,337 apartments, 19% less than in December 2024.
Fearing an increased level of borrowing risk for buyers of unfinished new homes, Israel’s central bank has imposed new restrictions on financing packages offered by developers, restricting their abilities to offer deferred payments and balloon loans through the end of 2026.
While these risky types of loans became popular after October 7, 2023, as contractors sought to attract uncertain customers, they are now used in 50% of all new housing purchases, the Bank of Israel noted.
There was a noticeable acceleration in the pace of construction starts, up to 66,000 in the fourth quarter of 2024, although the rate of construction finishes is lagging at 55,000 due to the shortage of workers available in the market, Bank Hapoalim noted in its weekly update for investors.
As more foreign workers enter the country to replace Palestinian workers unable to enter due to the war, the rate of construction completions should pick up pace. Construction starts should continue to rise in the coming years, as the number of building permits issued remains high, Bank Hapoalim said.
Political uncertainty is putting a damper on Israel’s economy, with the shekel declining by around 3.5% against the dollar in the past month.
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-Jaffa, a 117-square-meter (1,259-square-foot), four-room (three-bedroom) apartment at 6 Rama Street was sold for NIS 4,070,000 ($1,107,241) on March 4. The apartment is on the eighth floor of a nine-floor building built in 2016. It includes parking for two vehicles.
A 75-square-meter (807-square-foot), three-room (two-bedroom) apartment at 4 Tur Malka Street was sold for NIS 3,100,000 ($843,353) on March 2. The apartment is on the third floor of a seven-floor building built in 2024.
A 50-square-meter (538-square-foot), three-room (two-bedroom) apartment at 12 Pumbedita Street, Tel Aviv, was sold for NIS 3,900,000 ($1,060,993) on March 13. The apartment is on the ground floor of a four-floor building built in 1950.
In Jerusalem, a 90-square-meter (969-square-foot), four-room (three-bedroom) apartment at 16 Negba Street was sold for NIS 4,400,000 ($1,222,901) on March 3. The apartment is on the first floor of a three-floor building built in 1920. It includes a 21-square-meter yard.
An 82-square-meter (883-square-foot), three-room (two-bedroom) apartment at 66 Gideon Hausner Street was sold for NIS 2,959,000 ($804,994) on March 4. The apartment is on the fourth floor of a ten-floor building set to be completed in 2029.
An 87-square-meter (936-square-foot), three-room (two-bedroom) apartment at 12 Heletz Street was sold for NIS 3,875,000 ($1,054,192) on March 3. The apartment is on the first floor of a nine-floor building built in 2020. It includes an 88-square-meter yard.
In Beit Shemesh, a 98-square-meter (1,055-square-foot), four-room (three-bedroom) apartment at 3 Tekhelet Mordechai Street was sold for NIS 2,400,000 ($653,772) on March 10. The apartment is on the ground floor of a four-floor building built in 2005. It includes a 95-square-meter yard.
A 56-square-meter (603-square-foot), four-room (three-bedroom) apartment at 1 HaShiv’a Street was sold for NIS 2,175,000 ($595,238) on March 3. The apartment is on the first floor of a four-floor building built in 1970.
In Haifa, a 71-square-meter (764-square-foot), three-room (two-bedroom) apartment at 12 Yeshayahu Street was sold for NIS 1,200,000 ($329,127) on March 9. The apartment is on the sixth floor of a seven-floor building built in 1970.
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 three-room (two-bedroom) apartment at 10 HaNesi’im Street was put on the market for NIS 8,700 ($2,367) per month. The 85-square-meter (915-square-foot) apartment is on the third floor and features two balconies.
A 4.5-room (three-bedroom) apartment at 25 Natan Alterman Street was put on the market for NIS 11,000 ($2,993) per month. The 122-square-meter (1,313-square-foot) apartment is on the second floor.
In Jerusalem, a 4-room (three-bedroom) apartment in the neighborhood of Mekor Chaim was put on the market for NIS 11,000 ($2,993) per month. The 103-square-meter (1,109-square-foot) apartment is on the second floor.
A 4.5-room (three-bedroom) apartment at 84 Herzl Street in Beit Hakerem was put on the market for NIS 10,000 ($2,720) per month. The 126-square-meter (1,356-square-foot) apartment is on the fourth floor.
In Haifa, a 4-room (three-bedroom) apartment at 27 Machal Street was put on the market for NIS 3,600 ($979) per month. The 80-square-meter (861-square-foot) apartment is on the second floor.
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