Housing snapshot: Home sales and rentals across Israel in May 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 inched up slightly in March, official data shows.
Prices rose 0.1% in February and March 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 6.4%.
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 — continues to keep demand high even as the conflict disrupts construction and economic stability.
Prices during the two-month period rose by 1% in the northern district, 0.8% in Jerusalem, and 0.2% in Haifa. Prices dropped by 0.1% in the central district and by 0.1% in Tel Aviv, according to the data. Average prices remained unchanged in the southern district.
The average price of homes sold during the first quarter of the year was NIS 2,357,800 ($671,000), or 0.3% higher than the previous quarter.
The price of newly built homes rose by 0.6% compared to the previous two-month period, the CBS said.
According to Finance Ministry data, 8,012 apartments were sold in March, one of the lowest figures for March in the past 24 years. That figure represented a 2% decline from a year earlier, but an 8% increase from February 2025. Volume has been low during the first quarter of 2025 after a particularly strong December 2024, when buyers hurried to complete their purchases before VAT rose to 18% at the beginning of 2025.
New apartment sales declined by 17% compared to a year earlier, while secondhand apartment sales rose a robust 12%, as the Finance Ministry noted a shift in buyer preferences due to a rising gap in prices between the two categories.
Investors purchased 1,218 apartments in March, 5% fewer than a year earlier. Investors sold 1,614 apartments, 22% more than a year earlier.
Investors are buying more expensive apartments than previously, with the average apartment price purchased by investors rising 14% over six months, Israel’s Tax Authority reported. In June 2024, the median price of an investment apartment was NIS 2.3 million ($655,000), compared to NIS 2 million ($569,000) in December 2023.
The Bank of Israel said this week it would keep interest rates steady at 4.5% amid renewed fighting with the Hamas terror group in Gaza, a higher inflation environment, and global uncertainty. The central bank last lowered interest rates in January 2024.
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, an 84-square-meter (904-square-foot), three-room (two-bedroom) apartment at 6 Zeitlin Street was sold for NIS 4,450,000 ($1,229,961) on May 5. The apartment is on the third floor of a three-floor building built in 1930.
A 120-square-meter (1,292-square-foot), five-room (four-bedroom) apartment at 15 Asirei Zion Street was sold for NIS 4,350,000 ($1,215,423) on May 7. The apartment is on the eighth floor of a nine-floor building built in 2025.
A 49-square-meter (527-square-foot), three-room (two-bedroom) apartment at 4 Harari Street was sold for NIS 3,600,000 ($1,024,733) on May 14. The apartment is on the third floor of a three-floor building built in 1970.
In Jerusalem, an 82-square-meter (883-square-foot), four-room (three-bedroom) apartment at 9 Leib Yaffe Street was sold for NIS 3,050,000 ($856,982) on May 8. The apartment is on the second floor of a five-floor building built in 1990 and includes one parking space.
A 50-square-meter (538-square-foot), three-room (two-bedroom) apartment at 4 Yehoash Street was sold for NIS 3,335,000 ($949,248) on May 5. The apartment is on the ground floor of a three-floor building built in 1970.
A 115-square-meter (1,238-square-foot), four-room (three-bedroom) apartment at 127 Netter Street was sold for NIS 4,070,000 ($1,158,453) on May 4. The apartment is on the fifth floor of an eight-floor building built in 1982.
In Beit Shemesh, a 135-square-meter (1,453-square-foot), five-room (four-bedroom) apartment with a 135-square-meter yard at 5 Rabbi Hanina Street was sold for NIS 3,570,000 ($1,016,037) on May 6. The apartment is on the ground floor of a seven-floor building built in 2022.
A 125-square-meter (1,345-square-foot), five-room (four-bedroom) apartment at 4 Rav Ashi Street was sold for NIS 2,800,000 ($797,326) on May 1. The apartment is on the ground floor of a seven-floor building built in 2020 and includes one parking space.
In Haifa, a 101-square-meter (1,087-square-foot), four-room (three-bedroom) apartment at 6 Amatzia HaMelech Street was sold for NIS 2,580,000 ($726,351) on May 8. The apartment is on the 25th floor of a 36-floor building built in 2023.
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 4 Derech Shlomo in Givat Herzl is available for rent at NIS 11,000 ($2,920) per month. The 115-square-meter (1,238-square-foot) apartment is on the fourth floor.
A two-room (one-bedroom) apartment at Montifiore Street in Lev Tel Aviv is available for rent at NIS 8,000 ($2,123) per month. The 30-square-meter (323-square-foot) apartment is on the third and a half floor, without an elevator.
In Jerusalem, a three-room (two-bedroom) apartment at 30 Palmach Street in Rasco is available for rent at NIS 9,000 ($2,390) per month. The 85-square-meter (915-square-foot) apartment is on the ground floor of a small, special building.
A 3.5-room (two-bedroom) apartment at 59 Derech Beit Lechem in Baka is available for rent at NIS 9,500 ($2,523) per month. The 75-square-meter (807-square-foot) apartment is on the second floor.
In Haifa, a four-room apartment in the Lower City neighborhood is available for rent at NIS 4,100 ($1,089) per month. The 70-square-meter (753-square-foot) apartment is on the eighth floor of a 19-floor building
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