How much do homes cost in Israel?

Home prices in Israel are exceptionally high compared to most countries worldwide. Over the past 15 years (2009–2024), real estate prices have surged by approximately 130% in real terms, including an annual increase of about 7.8% recorded in 2024. This upward trend is driven by a high birth rate, limited land availability, and bureaucratic hurdles in the planning and building processes.

Regional Variations in Home Prices

Significant disparities exist between high-demand areas, such as Tel Aviv and Jerusalem, and peripheral regions. For instance, while the average price of a 4-room apartment in Tel Aviv is approaching NIS 5 million, similar apartments in remote cities may cost between NIS 1.2 million and NIS 1.7 million.

Official source for data on home prices

The Central Bureau of Statistics (CBS) is the primary official source for data on average home prices by region. In addition to the Home Price Index, published monthly, CBS releases quarterly data on average home prices, categorized by the number of rooms, geographical regions, and major cities. These figures are based on transaction data reported to the Tax Authority.

According to CBS data, in the fourth quarter of 2024, the average price of an apartment in Israel was NIS 2.33 million. The following table provides a breakdown of average apartment prices in Tel Aviv, Jerusalem, and Netanya:

City/No. Rooms*	Tel Aviv:	Jerusalem:	Netanya:
2-room apartment	2,768,300 NIS	1,818,400 NIS	1,350,000 NIS
3-room apartment	3,622,300 NIS	2,378,200 NIS	2,144,100 NIS
4-room apartment	4,884,400 NIS	3,143,400 NIS	2,639,300 NIS
5-room apartment	5,623,700 NIS	3,788,900 NIS	4,174,200 NIS

Understanding Localized Prices

While this information provides a general overview of price levels, it may not be sufficient for assessing prices in specific neighborhoods or streets. For more detailed insights, consider consulting the Tax Authority’s database, engaging with local real estate agents, or seeking evaluations from qualified appraisers familiar with the specific market.

Note: All monetary values are in New Israeli Shekels (NIS).