Housing snapshot October: Uptick in French and British buyers as Americans remain hesitant

Home prices in Israel rose by 0.2% in June and July 2026 compared to May and June 2026, according to the most recent report released by the Central Bureau of Statistics.

Market prices have fallen an average of 1.2% compared to the same period a year earlier (June–July 2026 vs. June–July 2025).

Israel’s housing market has slowed over the past year, partly 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 tamped down sales; the shekel’s strength against the dollar, currently at NIS 3.07, is also affecting demand from overseas buyers.

During June and July, prices rose by 0.7% in Tel Aviv, 0.3% in the Central District, and 0.1% in the Southern District. Conversely, prices dropped 0.1% in the Northern District, 0.3% in Haifa, and 0.4% in Jerusalem.

Compared with the same period last year, home prices increased by 1.1% in Jerusalem and 1.0% in the Northern District. Prices have fallen by 0.6% in the Southern District, 0.9% in Tel Aviv, 2.4% in Haifa, and 3.2% in the Central District.

Prices for new apartments rose by 0.5% over the previous two-month period, though they remain 0.8% lower year-over-year. Government-subsidized programs accounted for 41% of all new home transactions, up from 38% in the prior period.

Second-hand home prices dropped 1.2% during the second quarter of the year, compared to the previous quarter. Second-hand market data will now be reported on a quarterly schedule to manage sample sizing and reduce short-term statistical volatility, CBS said.

According to Finance Ministry data for July, a total of 7,692 apartments were sold during the month, a 4% decrease compared to July 2025. Transactions fell 12% compared to the previous month.

New apartment sales, including subsidized units, totaled 2,968 in July, up 9% from July 2025. A total of 4,724 secondhand apartments were sold, an 11% decrease compared to last year.

Investor activity declined, with 1,146 apartments purchased by investors, a 4% decrease compared to July 2025 and an 18% drop from the previous month. At the same time, investors sold 1,366 apartments, representing a 12% decrease compared to the same period last year and a 7% decrease from the previous month.

American buyer activity slowed, while French and British buyers showed notable upticks in transaction volume, the ministry said.

The construction industry experienced severe labor shortages following the October 7, 2023, Hamas attack, due to the loss of Palestinian construction permits. About 90% of lost labor capacity has been recovered through an influx of foreign workers and domestic Israeli laborers, the Finance Ministry noted.

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 3 Hirschenberg Street sold for NIS 3 million ($977,199). The apartment measures 70 square meters (753 square feet) and is located on the first floor of a three-story building constructed in 1950.

A three-room (two-bedroom) apartment at 5 Shir Street sold for NIS 3.52 million ($1,146,580). The apartment measures 71 square meters (764 square feet) and is located on the first floor of a four-story building constructed in 1930.

A three-and-a-half-room apartment at 26 Moshe Dayan Road sold for NIS 1.98 million ($644,951). The apartment measures 65 square meters (700 square feet) and is located on the third floor of a four-story building constructed in 1970.

In Jerusalem, a four-room (three-bedroom) apartment at 65 Aryeh Ben-Eliezer Street sold for NIS 2.5 million ($814,332). The apartment measures 75 square meters (807 square feet) and is located on the first floor of a four-story building constructed in 1970.

A four-room (three-bedroom) apartment at 2 Bar-Lev Road sold for NIS 3.27 million ($1,065,147). The apartment measures 104 square meters (1,119 square feet) and is located on the seventh floor of an eight-story building constructed in 2000.

A four-room (three-bedroom) apartment at 7 Gedaliah Bublick Street sold for NIS 3.17 million ($1,032,573). The apartment measures 86 square meters (926 square feet) and is located on the first floor of a four-story building constructed in 1970.

In Beit Shemesh, a four-room (three-bedroom) apartment at 21 Roi Klein Street sold for NIS 2.35 million ($765,472). The apartment measures 100 square meters (1,076 square feet) and is located on the third floor of an eight-story building constructed in 2021.

A five-room (four-bedroom) apartment at 54 HaAmoraim Boulevard sold for NIS 2.65 million ($863,192). The apartment measures 112 square meters (1,206 square feet) and is located on the third floor of a 10-story building constructed in 2020.

In Haifa, a four-room (three-bedroom) apartment at 34 Na’amat Street sold for NIS 2.05 million ($667,752). The apartment measures 100 square meters (1,076 square feet) and is located on the first floor of a five-story building constructed in 1994.

Rentals

The database of the real estate website Madlan was used to compile this sample of rental apartments on the market, focusing 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 on HaZohar Street in the Bavli neighborhood is available for rent at NIS 9,300 ($3,037) per month. The apartment measures 70 square meters (753 square feet) and is located on the second floor of a building with an elevator.

A four-room (three-bedroom) apartment at 66 Ben Yehuda Street in the Old North’s southwestern section is available for rent at NIS 14,900 ($4,869) per month. The apartment measures 120 square meters (1,292 square feet) and is located on the second floor of a building with an elevator.

In Jerusalem, a three-room (two-bedroom) apartment on Shabazi Street in the Nachlaot neighborhood is available for rent at NIS 8,500 ($2,778) per month. The apartment measures 90 square meters (969 square feet) and is located on the first floor of the building.

A four-room (three-bedroom) apartment at 18 HaShofet Haim Cohen Street in Arnona (Talpiot) is available for rent at NIS 8,500 ($2,778) per month. The apartment measures 107 square meters (1,152 square feet) and is located on the sixth floor of a building with an elevator.

In Haifa, a four-room (three-bedroom) apartment at 28 Haruv Street in the West Carmel neighborhood is available for rent at NIS 4,550 ($1,487) per month. The apartment measures 100 square meters (1,076 square feet) and is located on the third floor of the building.