Data from the Central Bureau of Statistics (CBS) reveals that apartment prices have risen by 0.3% this month—a more moderate increase compared to recent months. Over the past year, this represents a 6.3% increase. In Jerusalem, there was a decrease of 0.5%, while in Tel Aviv, prices increased by 0.1%. Increases were also noted in the Haifa, Northern, and Southern districts. Rent increased by 2.4% for tenants renewing their leases and by 4.1% for new tenants.
By Asaf Kravitz, Nadlan Center
Despite the current challenges and an unprecedented level of unsold apartments, prices continue to rise, albeit more moderately than in recent months, according to the apartment price index published this evening (Tuesday) by CBS. A comparison of transaction prices from July-August 2024 with those from June-July 2024 shows a 0.3% rise in apartment prices.
The following price changes were recorded by district: Jerusalem (-0.5%), Northern (0.4%), Haifa (1.6%), Central (0.4%), Tel Aviv (0.1%), and Southern (0.3%). Prices for new apartments increased by 1.3%.
In the annual comparison of transaction prices from July-August 2024 versus July-August 2023, the yearly apartment price index increased by 6.3%. By district, price increases were observed in the following areas: Haifa (10.2%), Central (8.8%), Northern (6.3%), Southern (5.7%), Jerusalem (5.1%), and Tel Aviv (3.3%). The annual index for new apartment prices rose by 3.2%.
Regarding rent, there was a 2.4% increase for tenants renewing leases, while for new tenants (in apartments with turnover), there was an increase of 4.1%. It is important to emphasize that these percentage changes reflect an approximation of the annual rent change rates for these groups, as rent typically does not change for most tenants over the past year due to being under rental agreements that set the monthly rent, usually without adjustment mechanisms.
The construction cost index for residential buildings rose by 0.4% in September 2024, reaching 132.5 points compared to 132.0 points the previous month (base: July 2011 = 100.0 points). Since the beginning of the year, this index has increased by 2.1%.
The construction cost index, excluding labor costs, rose by 0.1%. Over the past 12 months (September 2024 compared to September 2023), it increased by 2.3% due to a 3.8% rise in labor costs and a 4.1% increase in equipment and vehicle rentals.
Among materials and products, notable price increases were observed for construction steel (by 2.5%), fire safety products (by 1.8%), other quarry materials, sanitary ware, and construction wood (each by 0.9%), as well as wall and floor tiles, iron nets, faucets, batteries, and various accessories (each by 0.8%). Conversely, prices for other metal products and outdoor facilities fell by 1.1% each. The labor cost index for employees in the sector increased by 0.6% in September 2024.