Home prices in Israel fell in September and October for the eighth consecutive time, indicating that high interest rates and shifting demand are placing significant downward pressure on one of the world’s most expensive housing markets.

Prices dropped 0.5 percent in September-October compared to August-September, and have fallen by some 2.6% in the last eight months, according to the most recent information available from the Central Bureau of Statistics.

Home prices have risen only 0.1% over the past 12 months, representing a “noticeable cooling” of the market, CBS said. Earlier this year, the market’s annual growth had peaked at 7.8%.

The housing market has slowed in recent months, partially in reaction to the multifront war Israel has been engaged in since Hamas invaded southern Israel on October 7, 2023. High interest rates, a record supply of unsold new housing, and high prices have also helped to tamp down sales. The shekel’s strength against the dollar, the highest level in years at NIS 3.20, is also affecting demand by overseas buyers.

During the past month, prices rose by 1.4% in Jerusalem, but fell by 2.1% in the south, 1.1% in Tel Aviv, 0.6% in Haifa, 0.4% in the central district, and 0.2% in the north. New home prices dropped by 1.4%.

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Over the past 12 months, prices have risen by 8.9% in Jerusalem, 5.5% in the north, 1.2% in Haifa, and 0.5% in the south. In Tel Aviv, prices have declined by 2.9%, alongside a 2.7% decline in the central district.

According to Finance Ministry data for October, a total of 4,518 apartments were sold, a 12% decline from a year ago, and the lowest monthly total since November 2023.

It was one of the slowest months for deals since the turn of the century, with fewer deals recorded only in October 2023, after the outbreak of the war; October 2011, during the social justice protests; and October 2008, at the outset of the global financial crisis.

The volume of homes bought and sold every month has been down year-over-year in every month of 2025 after peaking in December 2024, Finance Ministry data shows.

New apartment sales, including government-subsidized units, declined by 14% from October 2024 to 1,917 units. Secondhand apartment sales reached 2,601 units, a 10% decline compared to October 2024.

Investors purchased 759 apartments in October, a 15% decrease compared to October 2024. In the same period, investors sold 768 apartments, a 14% decrease.


Construction on the HaShalom bridge in Tel Aviv. September 28, 2025. (Avshalom Sassoni/FLASH90)

Sales

To provide the housing snapshot below, we used the Israel Tax Authority’s database, which records the actual prices paid for properties. The focus is on sales over the last month to present the most up-to-date picture of the market.

In Tel Aviv, a three-room (two-bedroom) apartment at 62 Ben Yehuda Street sold for NIS 4 million ($1,246,000). The apartment measures 62 square meters (667 square feet) and is located on the third floor of a six-story residential building constructed in 1970.

A four-room (three-bedroom) apartment at 12 Beit El Street sold for NIS 2.825 million ($875,000). The apartment measures 81 square meters (872 square feet) and is located on the fourth floor of a six-story residential building constructed in 1960.

A four-room (three-bedroom) apartment at 136 HaHagana Street sold for NIS 2.35 million ($726,000). The apartment measures 56 square meters (603 square feet) and is located on the first floor of an eight-story residential building constructed in 1970.

In Jerusalem, a five-room (four-bedroom) apartment at 8 Rabbi Moshe Tov Street sold for NIS 3.5 million ($1,090,000). The apartment measures 118 square meters (1,269 square feet) and is located on the fifth floor of a five-story residential building constructed in 2017.

A four-room (three-bedroom) apartment at 22 Ben Uziel Street sold for NIS 2.885 million ($898,000). The apartment measures 90 square meters (969 square feet) and is located on the first floor of a four-story building constructed in 1970.

A four-room (three-bedroom) apartment at 32 Harav Toledano Street sold for NIS 3.26 million ($1,015,000). The apartment measures 95 square meters (1,023 square feet) and is located on the first floor of a seven-story building constructed in 2019.

In Beit Shemesh, a three-room (two-bedroom) apartment at 9 Rabbi Yitzhak Nafha Street sold for NIS 2.12 million ($657,000). The apartment measures 99 square meters (1,066 square feet) and is located on the fifth floor of a six-story residential building constructed in 2022.

A four-room (three-bedroom) apartment at 9 HaAliya Street sold for NIS 2.5 million ($774,000). The apartment measures 114 square meters (1,227 square feet) and is located on the sixth floor of a 15-story residential building constructed in 2013.

In Haifa, a four-room (three-bedroom) apartment at 4 Aryeh Dolchin Street sold for NIS 1.67 million ($513,000). The apartment measures 85 square meters (915 square feet) and is located on the fifth floor of a seven-story residential building constructed in 2000.


An artist’s rendering of Jerusalem’s King George Street after construction is finished (Jerusalem Transportation Master Plan Team)

Rentals

The database of the real estate website Madlan was used to compile this sample of rental apartments on the market with a focus on three-room (two-bedroom) properties, suitable for a couple, two roommates, or a small family.

In Tel Aviv, a four-room (three-bedroom) apartment in the Nachalat Yitzhak neighborhood is available for rent at NIS 9,700 ($2,570) per month. The apartment measures 104 square meters (1,119 square feet), including a 12-square-meter (129-square-foot) balcony, and is located on the fourth floor.

A four-room (three-bedroom) apartment at 7 Avraham Boyer Street, Ramat Aviv Gimel, is available for rent at NIS 11,500 ($3,047) per month. The apartment measures 97 square meters (1,044 square feet) and is located on the seventh floor with a sea view.

In Jerusalem, a five-room (four-bedroom) garden apartment at 60 Binyamin Mintz Street is available for rent at NIS 10,000 ($2,648) per month. The apartment measures 120 square meters (1,292 square feet) and is located on the ground floor.

A four-room (three-bedroom) apartment at 62 Mekor Chaim Street is available for rent at NIS 11,500 ($3,047) per month. The apartment measures 106 square meters (1,141 square feet), including a 9-square-meter (97-square-foot) balcony, and is located on the fifth floor.

In Haifa, a five-room (four-bedroom) garden apartment at 11 Shimshon Street, Merkaz HaCarmel is available for rent at NIS 4,500 ($1,191) per month. The apartment measures 120 square meters (1,292 square feet) and is located on the ground floor.