Israel Home Prices Are Rising Again — Here Is the Average Price of an Apartment

By Nimrod Bousso, Nadlan Center

Apartment prices in Israel rose by 0.3%, based on a comparison of transactions carried out during February–March 2026 versus January–February 2026, according to the housing price index published today (Friday) by the Central Bureau of Statistics (CBS). This marks the first price increase following two consecutive months of declines. A year-over-year comparison (February–March 2026 versus February–March 2025) shows that apartment prices fell by 1.2%.

New apartment prices rose by 0.4% during February–March, but when government-subsidized transactions (such as “Mechir LaMishtaken” and similar programs) are excluded, prices actually declined by 0.3%. On an annual basis, the drop was sharper — a decline of 3.8%.

Breaking the data down by district for February–March 2026 compared to January–February 2026, price increases were recorded in the Tel Aviv district (1.2%) and Jerusalem (0.4%), while the Central district saw a slight decline (0.2%). On an annual basis, Jerusalem recorded a significant price increase of 4.2%, while Tel Aviv saw a decline of 3.5% and the Central district fell by 2.9%.

The CBS review also included average apartment prices for the first quarter of 2026. The national average stood at approximately NIS 2.33 million per apartment — a decline of 1.6% compared to the fourth quarter of 2025, when the average was NIS 2.37 million.

The data also covered average apartment prices across Israel’s 18 largest cities. The three most expensive cities are Tel Aviv, where the average price stands at approximately NIS 4.59 million, Herzliya at approximately NIS 3.85 million, and Jerusalem at approximately NIS 3.1 million. At the other end of the scale are Be’er Sheva (approximately NIS 1.24 million), Ashkelon (approximately NIS 1.64 million), and Haifa (approximately NIS 1.8 million).

A comparison of average prices in Q1 2026 versus the same quarter last year shows notable increases in Kfar Saba (11.3%), Tel Aviv (10.3%), Netanya (8.2%), and Haifa (6.9%). Average price declines were recorded in Ashkelon (3.2%), Herzliya (2.9%), and Bat Yam (2.5%).

Sharp Rise in the Consumer Price Index

The Consumer Price Index (CPI) rose by 1.2% in April 2026 compared to March 2026. Over the past twelve months (April 2026 versus April 2025), the CPI rose by 1.9%.

Rental prices for tenants who renewed their lease increased by 2.6%, while new tenants — in apartments where a tenant change occurred — saw increases of 3.6%.

The residential construction cost index rose by 1.1% in April 2026, reaching 102.8 points, up from 101.7 points the previous month. Since the start of the year, this index has risen by 1.6%. Over the past 12 months (April 2026 versus April 2025), the residential construction inputs index rose by 3%, driven primarily by a 4.7% increase in labor costs.

The Israel Builders Association responded to the data, stating: “We have been warning for two and a half years that without a significant plan to address the historic crisis in our industry, none of the processes meant to produce more apartments, more infrastructure, and more accessible rental solutions will materialize. The government must address the labor shortage, streamline planning, align construction contracts with current market realities in public construction and infrastructure, create reasonable financing conditions for developers and homebuyers, encourage investment in rental housing, and — most importantly — stop trying to produce point solutions through various lotteries and temporary local subsidies. The answer must be a comprehensive solution.”