A Price Level Not Seen in Years: Tel Aviv Returns to the “One Million Shekels per Room” Era

The average price of a 4-room apartment in Tel Aviv stood at approximately NIS 4.3 million in the third quarter of 2025— a sharp drop of about 15% compared to last year, while prices of 5-room apartments fell even more dramatically by 21%. In most cities across the Tel Aviv metropolitan area, the declines were more moderate. But in Jerusalem, the trend was completely different, with prices climbing significantly.

By Doron Breutman, by Nadlan Center

The average price of an apartment in Israel in the third quarter of 2025 reached NIS 2.214 million, according to data published last Friday by the Central Bureau of Statistics (CBS) alongside the Housing Price Index. This reflects a decrease of about 1.9% compared to the previous quarter, as well as a 2.5% decrease compared to the same quarter last year.

The data also show that compared to the third quarter of last year, prices of small apartments are trending upward, while prices of larger apartments are moving downward. Thus, the average price of a 1–2 room apartment stands at NIS 1.58 million (an increase of 6.1% year-over-year). A 2.5–3 room apartment averages NIS 1.77 million (an increase of 0.8%). A 3.5–4 room apartment averages NIS 2.21 million (a decrease of 1.6%). A 4.5–5 room apartment costs an average of NIS 2.789 million (a decrease of 5%), and a 5.5–6 room apartment averages NIS 3.27 million (a decrease of 6.6%).

A breakdown by cities (CBS publishes data for cities with at least 100,000 residents) reveals dramatic figures for Tel Aviv. The average price of a 4-room apartment in the city during the third quarter was about NIS 4.3 million — a level that real estate professionals in the city have not seen for years, reflecting a 15.5% decrease compared to the same quarter last year, when such apartments averaged roughly NIS 5.09 million.

An even steeper decline of 21.2% was recorded in the average price of 5-room apartments in Tel Aviv. In the third quarter of 2025, the average stood at NIS 5.18 million, compared to NIS 6.58 million last year. However, it is important to note that this quarter included a very small sample size, with only 18 transactions of this type. A 3-room apartment in Tel Aviv, by contrast, averages NIS 3.516 million — a more moderate decline of 4.3% compared to last year.

Declines in the average price of 4-room apartments compared to last year were also recorded in other cities. In Netanya, the average price fell by 6.3% to NIS 2.46 million. In Holon, prices dropped by 7.5% to NIS 2.21 million. In Ashdod, there was a 4.1% decrease to NIS 2.13 million, and in Ramat Gan a decrease of 3.9% to NIS 3.16 million.

In contrast, Jerusalem saw a notable increase of 8.9% in the average price of a 4-room apartment, which now stands at NIS 3.36 million. Even higher increases were recorded in 2- and 3-room apartments, rising by 15.8% and 10.3% respectively. A 2-room apartment in Jerusalem averages about NIS 2.1 million, while a 3-room apartment averages NIS 2.63 million. A 5-room apartment, however, averages NIS 4.045 million — a 3.6% decline compared to the previous quarter.

Increases in the average price of 4-room apartments were also recorded in Beit Shemesh, rising by 6.2% to NIS 2.39 million, and in Herzliya, rising by 8.5% to NIS 3.78 million.

In Haifa, the average price of a 4-room apartment stood at NIS 1.86 million, similar to last year, while the price of a 3-room apartment reached NIS 1.31 million, an increase of 5.8%. In Be’er Sheva — which has the lowest average price for a 4-room apartment among the 18 cities surveyed — a 4-room unit averages NIS 1.32 million, a 2.3% rise compared to last year. The price of a 3-room apartment averaged NIS 857,000 in the third quarter, similar to last year.

A regional breakdown shows that the average price of a 3.5–4 room apartment in the Tel Aviv District was NIS 3.275 million in the third quarter of 2025, representing a 7.6% decrease compared to last year. Next is the Jerusalem District, where the average price for a 4-room apartment is NIS 3.036 million — a 10% increase compared to last year.

In the Central District, the average price of a 4-room apartment is NIS 2.537 million (a 0.9% decrease compared to last year). In the Haifa District, the price averages NIS 1.858 million (a 3.1% increase). In the Southern District, the average is NIS 1.562 million (a 0.7% increase). In the Northern District, the average price for a 4-room apartment is NIS 1.53 million (a 7.2% increase).