The annual increase in apartment prices stands at 6.7%. The index fell by 0.4%, according to the Central Bureau of Statistics. The sharpest increase was recorded in the Northern District—1.5%.
By Nadlan Center
According to the apartment price index published this evening (Sunday) by CBS, apartment prices in Israel rose by another half percent. According to the announcement, “A comparison of transaction prices from September–October 2024 to August–September 2024 found that apartment prices rose by 0.5%.”
By district, the following price changes were recorded: Jerusalem (-0.4%), North (+1.5%), Haifa (-0.2%), Center (+0.4%), Tel Aviv (+1.0%), and South (+0.4%). New apartment prices rose by 0.3%.
In an annual comparison of transaction prices from September–October 2024 to September–October 2023, the yearly apartment price index increased by 6.7%. By district, the following price increases were recorded: Haifa (+11.1%), North (+9.5%), Center (+7.7%), Tel Aviv (+5.9%), South (+5.2%), and Jerusalem (+1.7%). The annual index for new apartment prices rose by 3.6%.
3.8% increase in rent for new tenants
Examining rental prices among tenants who renewed leases shows an increase of 2.6%, while apartments with new tenants saw a 3.8% rise.
CBS explained, “These changes approximate the annual rate of change in rental prices for these groups. This is because rental prices for most tenants remained unchanged in the past year, as they are under leases that specify a fixed monthly rent, often without adjustment mechanisms.”
The residential construction input index rose by 0.3% in November 2024, reaching 133.2 points compared to 132.8 in the previous month (base: July 2011 = 100.0 points). Since the start of the year, this index has risen by 2.6%. Over the past 12 months (November 2024 compared to November 2023), the residential construction input price index increased by 2.6%, driven by a 4.7% rise in labor costs and a 3.0% increase in equipment and vehicle rental prices.
The consumer price index dropped by 0.4% in November. Over the past 12 months (November 2024 compared to November 2023), the consumer price index rose by 3.4%.
“The State must invest in long-term rentals”
The president of the Israel Builders Association, Raul Srugo, commented on the index: “We are still seeing the negative impact of rent prices on national inflation. A 4% increase in rental prices raises annual inflation by more than a whole percentage point, which keeps interest rates high.
“The state must encourage construction for rent and investment in long-term rental apartments to lower rental prices and thereby moderate inflation.
“Apartment prices continue to reflect an abnormal situation where, despite declining demand, prices keep rising—up about 7% since the start of the year. This mainly results from the continued decline in apartment supply in the market, causing prices to rise.”
