How much do homes cost in Israel?

Home prices in Israel are considered particularly high relative to most countries in the world, and rightly so. Objective data such as a high birth rate alongside a limited amount of land, along with managerial failures, chief among them the severe bureaucratic foot-dragging that characterizes the planning and building processes in the country, have led to the increase in real prices of about 125% over the past 15 years (2008-2023).

There are significant differences between home prices in high-demand areas, which include Tel Aviv and its surrounding cities and Jerusalem on the one hand, and peripheral areas on the other. While the average price of a 4-room apartment in Tel Aviv is currently approaching NIS 5 million, its price in a remote peripheral city may be only NIS 1-1.5 million.

Official source for data on home prices

The only official source for data on average home prices by region is the Central Bureau of Statistics (CBS). Alongside the Home Price Index, which is published on the 15th day of each month, the Central Bureau of Statistics also publishes data on average home prices once a quarter, based on transactional data reported to the Tax Authority, broken down into number of rooms, geographical regions, and 16 large cities.

According to these figures, in the fourth quarter of 2022, the average price of an apartment in Israel was NIS 1.96 million. The following chart shows the average price of an apartment in Jerusalem, Tel Aviv, and Haifa, in a segmentation by room numbers:

While this information gives us a general idea of the price level, it is not useful if you want to check a price level in a particular neighborhood or street that you are interested in. In such a case, you can access the Tax Authority’s database, or engage with local real estate agents or qualified appraisers who are familiar with the market in question.