Home prices in Israel are not stopping: risen by almost another percent, up 2.1% annually

For the fifth consecutive time, the Home Price Index published today by the Central Bureau of Statistics showed home prices in Israel up by 0.9 percent. Also recorded is an increase of 3.7% in rental prices in apartments where a tenant has changed and an increase of 0.5 percent in the input index. Contractors Association: “It’s time for the government to come to its senses”

By Assaf Kravitz, Nadlan Center


Home prices increased for the fifth consecutive time by 0.9 percent, according to the Home Price Index published today by the Central Bureau of Statistics (CBS). This is based on comparing the prices of transactions carried out in March–April 2024 with those carried out in February–March 2024. In the past year, home prices increased by 2.1 percent.

Segmenting by district, Tel Aviv saw an increase of more than one percent (1.1%), Jerusalem 0.8%, North 0.5%, Haifa 1.6%, Center 0.6%, and South 0.9%. Prices of new homes increased by 0.9 percent.

Monthly rents increased by 2.5% for tenants who renewed their leases, and for new tenants (apartments in the sample with tenant turnover), there was an increase of 3.7%.

The Residential Construction Cost Index increased by 0.5 percent in May 2024, reaching 130.7 points compared with 130.1 points in the previous month (baseline: July 2011 = 100.0 points). This index has increased by 0.7 percent since the beginning of the year.

In the past 12 months (May 2024 vs. May 2023), the Construction Cost Index increased by 1.2 percent due to increased labor wage prices by 1.9 percent and the rental of equipment and vehicles by 3.3 percent.

The Materials and Products Price Index increased by 0.5% in May 2024. Among materials and products, the prices of paints (by 4.2%), iron nets (by 2.9%), construction iron (by 1.6%), wall and floor tiles (by 1.2%), faucets, batteries, and various accessories (by 0.9%) declined.

Contractors Association: “It’s time for the government to come to its senses”

In response to the index, Raul Serugu, president of the Israel Builders’ Association, said: “The decisions and actions of the government since the beginning of the war have left those in charge of extinguishing the fire in the construction industry without the tools required to perform their duties. In this, too, the government is being dragged and not leading. From the eighth of October, we, who represent this important sector of the economy, warn that ignoring the needs of contractors will kill the ability of many Israelis to find a housing solution this year, eliminate any possibility of meeting the infrastructure needs we must build and block the return to growth of the Israeli economy in the coming years.

“The time has come for the Israeli government to come to its senses and stop the fire that is eating the construction and infrastructure industry, complete the return of workers to construction sites, stop the deadly losses of construction contractors, and save tens of thousands of Israelis from economic collapse. It must lead an expansionary policy that will generate additional construction starts and increase its revenues that have fallen from real estate. The increase in home and rental prices in recent months is only the prelude to the catastrophe that could occur if the government does not do so. It’s on you, and no one will forget it.”

The contents of this article are designed to provide the reader with general information and not to serve as legal or other professional advice for a particular transaction. Readers are advised to obtain advice from qualified professionals prior to entering into any transaction.

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