Housing snapshot May 2026: Despite Iran war, home prices rise 0.3% in February-March

Home prices in Israel rose slightly in February and March 2026, increasing by 0.3 percent compared to the previous two-month period, according to a new report released by the country’s Central Bureau of Statistics.

Despite the modest increase, prices were still down 1.2% compared to the same period a year earlier, marking one of the few sustained annual declines in the past decade, CBS said. Prices have declined in nine out of the last 12 months.

The rise comes despite market uncertainties regarding Israel’s war with Iran, which began on February 28.

Israel’s housing market has slowed over the past year, partially in reaction to the multifront war Israel has been engaged in since Hamas invaded southern Israel on October 7, 2023. High interest rates, a record supply of unsold new housing, and high prices have also helped to tamp down sales. The shekel’s strength against the dollar, currently at a 30-year high at NIS 2.86, is also affecting demand from overseas buyers.

During the two-month period, prices rose by 1.2% in Tel Aviv, 0.4% in Jerusalem and 0.1% in Haifa. Prices declined by 0.2% in the central district and 0.1% in the north, while prices in the south remained unchanged.

Compared with the same period last year, prices climbed 4.2% in Jerusalem, 1.6% in the north and 0.7% in Haifa. Prices fell by 3.5% in Tel Aviv and 2.9% in the central district, while remaining flat in the south.

New home prices rose 0.4% during the two-month period, but were down 3.8% year-on-year.

The average nationwide apartment price in the first quarter of 2026 stood at NIS 2.33 million ($816,500), down 1.6% from the previous quarter. Tel Aviv remained the country’s most expensive district, with an average home price of NIS 3.4 million ($1.2 million), while the north was the cheapest at NIS 1.5 million ($525,600).

According to Finance Ministry data for March, a total of 7,395 apartments were sold, an 8% decline compared to March 2025. Transactions rose 3% compared to the previous month.

The decline in transactions was relatively moderate considering Israel’s war with Iran during the month, the ministry noted, although activity remained historically low.

New apartment sales, including subsidized units, totaled 2,789 units in March, marking an 11% drop compared to March 2025. A total of 4,606 secondhand apartments were sold, a 6% decline compared to last year.

Investor activity increased during the month, with 1,309 apartments purchased by investors, an 8% increase compared to March 2025 and a 12% increase from the previous month. At the same time, investors sold just 890 apartments, a sharp 42% decline from a year earlier, one of the lowest levels recorded in recent years outside holiday periods.

A report this month by the Finance Ministry’s Chief Economist’s Office provided the government’s first detailed breakdown of foreign property purchases based on the country where the buyer’s passport was issued.

American buyers bought 238 apartments in the first quarter of 2026, compared to 248 during the same period in 2025. Over the same period, purchases by French citizens jumped to 130 apartments, from 84 in the first quarter of 2025, while those by British buyers rose to 57, from 37 a year earlier. Canadians bought 16 apartments during the first quarter of 2026, and Australians purchased 10.

Economists attributed the slowdown directly to a 13.6% depreciation of the US dollar against the Israeli shekel, which effectively made Israeli real estate significantly more expensive for buyers relying on American currency.

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 three-room (two-bedroom) apartment at Emil Zola Street 4 sold for NIS 3.6 million ($1,240,096). The apartment measures 71 square meters (764 square feet) and is located on the first floor of a three-story building constructed in 1970.

A three-room (two-bedroom) apartment at 15 Asirei Zion Street sold for NIS 3.1 million ($1,067,860). The apartment measures 75 square meters (807 square feet) and is located on the seventh floor of a nine-story building constructed in 2025.

A 4.5-room apartment at 84 Levi Eshkol Boulevard sold for NIS 4.7 million ($1,610,692). The apartment measures 107 square meters (1,152 square feet) and is located on the seventh floor of a nine-story building constructed in 1998.

In Jerusalem, a four-room apartment at 21 Harav Shach Street sold for NIS 3.04 million ($1,046,471). The apartment measures 99 square meters (1,066 square feet) and is located on the second floor of a four-story building constructed in 2023.

A four-room apartment at 40 Herzl Boulevard sold for NIS 3.25 million ($1,117,606). The apartment measures 84 square meters (904 square feet) and is located on the second floor of a three-story building constructed in 1960.

A four-room apartment at 40 Levi Eshkol Street sold for NIS 3.95 million ($1,359,724). The apartment measures 69 square meters (743 square feet) and is located on the first floor of a four-story building constructed in 1970.

In Beit Shemesh, a six-room (five-bedroom) apartment at 25 Nahal Ayalon Street sold for NIS 3.5 million ($1,203,162). The apartment measures 207 square meters (2,228 square feet) and is located on the fifth floor of a five-story building constructed in 1995.

A three-room apartment at 6 Ma’ale David Street sold for NIS 1.93 million (approximately $663,500). The apartment measures 90 square meters (969 square feet) and is located on the fourth floor of a 10-story building constructed in 2021.

In Haifa, a four-room apartment at 8 Dr. Joachim Caspari Street sold for NIS 1.587 million ($556,331). The apartment measures 89 square meters (958 square feet) and is located on the third floor of a three-story building constructed 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 six-room (five-bedroom) apartment in Maoz Aviv at 201 Bnei Ephraim Street is available for rent at NIS 15,000 ($5,256) per month. The apartment measures 120 square meters (1,292 square feet) and is located on the second floor of the building.

A three-room (two-bedroom) apartment on Montefiore Street in central Tel Aviv is available for rent at NIS 10,000 ($3,504) per month. The apartment measures 65 square meters (700 square feet) and is located on the fourth floor of a building with an elevator.

In Jerusalem, a four-room (three-bedroom) furnished apartment in Katamon at 31 Yehoshua Ben Nun Street is available for rent at NIS 10,500 ($3,679) per month. The apartment measures 85 square meters (915 square feet) and is located on the first floor of a building with an elevator.

A three-room (two-bedroom) apartment in the city center at 3 Even Yisrael Street is available for rent at NIS 8,300 ($2,908) per month. The apartment measures 78 square meters (840 square feet) and is located on the fifth floor of a building with an elevator.

In Haifa, a three-room (two-bedroom) apartment on Horev Street in Givat Downes is available for rent at NIS 4,400 ($1,542) per month. The apartment measures 85 square meters (916 square feet) and is located on the second floor of a small residential building.