Authored by the expert who managed and guided the team behind the Israel Property Pack
Yes, the analysis of Jerusalem's property market is included in our pack
This article covers the current housing prices in Jerusalem, giving you a clear picture of what properties cost across different neighborhoods and property types.
We constantly update this blog post to reflect the latest market data, so you always have access to fresh information.
Whether you're looking for an entry-level apartment or a luxury penthouse, you'll find the numbers you need here.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Jerusalem.
Insights
- Jerusalem's average home price sits at around 2.9 million shekels (about $904,000), but the median is closer to 2.7 million shekels because luxury properties pull the average up.
- New construction in Jerusalem typically costs 12% to 20% more than comparable existing homes, mainly because buyers avoid renovation risks and get modern amenities like elevators and safe rooms.
- The price gap between Jerusalem's cheapest and most expensive neighborhoods can reach 3x per square meter, with Gilo at around 24,000 to 32,000 shekels per sqm versus Talbiya at 55,000 to 80,000 shekels per sqm.
- Despite nominal price growth of about 1% over the past year, Jerusalem housing prices have actually declined by roughly 1% to 2% in real terms when you account for inflation.
- Standard apartments make up about 70% of Jerusalem's residential market, while penthouses and villas together represent only 6% of available properties.
- Buyers in Jerusalem should budget an extra 7% to 15% on top of the purchase price for taxes, legal fees, and renovation work.
- The entry point for owning property in Jerusalem starts around 1.4 million shekels (about $437,000), typically for a small 2-room apartment in neighborhoods like Gilo or Pisgat Ze'ev.
- Over the past decade, Jerusalem property prices have risen roughly 70% in nominal terms, which translates to about 45% to 50% growth after adjusting for inflation.
What is the average housing price in Jerusalem in 2026?
The median housing price is more telling than the average because a small number of very expensive luxury properties in Jerusalem's prime neighborhoods pull the average up, making it less representative of what most buyers actually pay.
We are writing this as of January 2026 with the latest data collected from authoritative sources like the Israel Central Bureau of Statistics, which we manually double-checked for accuracy.
The median housing price in Jerusalem in 2026 is estimated at around 2,700,000 shekels, which converts to approximately $842,000 or €717,000. The average housing price in Jerusalem in 2026 is about 2,900,000 shekels (roughly $904,000 or €770,000).
About 80% of residential properties in Jerusalem in 2026 fall within a price range of 1.8 million to 5 million shekels, which is approximately $561,000 to $1,560,000.
A realistic entry range for Jerusalem housing in 2026 is between 1.4 million and 1.9 million shekels (about $437,000 to $592,000 or €372,000 to €505,000), which can get you an older 2-room apartment of 35 to 45 square meters in southern neighborhoods like Gilo or Pisgat Ze'ev.
Luxury properties in Jerusalem in 2026 typically range from 10 million to 25 million shekels or more (approximately $3.1 million to $7.8 million or €2.7 million to €6.6 million), and this budget can get you a new or fully renovated penthouse of 180 to 250 square meters in prime neighborhoods like Talbiya or Rehavia, complete with terraces, elevator, and parking.
By the way, you will find much more detailed price ranges in our property pack covering the real estate market in Jerusalem.
Are Jerusalem property listing prices close to the actual sale price in 2026?
In Jerusalem's housing market in 2026, listing prices are typically 4% to 7% higher than the final sale price after normal negotiations.
This gap exists mainly because Jerusalem has a lot of older housing stock that often needs renovation, so buyers negotiate down after inspections reveal work that needs to be done. The gap can shrink to nearly zero for rare, well-priced units in high-demand areas, but it can widen significantly for listings that have been sitting on the market for a long time.
Get fresh and reliable information about the market in Jerusalem
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What is the price per sq m or per sq ft for properties in Jerusalem in 2026?
As of January 2026, the median housing price per square meter in Jerusalem is about 33,000 shekels (approximately $10,300 or €8,770), while the median price per square foot is around 3,066 shekels (about $956 or €815). The average price per square meter is slightly higher at 35,000 shekels ($10,900 or €9,300), with the average per square foot at 3,252 shekels ($1,014 or €864).
Small apartments in prime central locations like Rehavia or Talbiya have the highest price per square meter in Jerusalem in 2026 because of location premiums and scarcity, while older, larger apartments in peripheral neighborhoods without elevators or parking have the lowest price per square meter due to distance from the city center and renovation needs.
The highest prices per square meter in Jerusalem in 2026 are found in Talbiya and Rehavia, ranging from about 50,000 to 80,000 shekels per sqm. The lowest prices per square meter are in neighborhoods like Gilo, Pisgat Ze'ev, and Har Homa, where you can find properties at 24,000 to 34,000 shekels per sqm.
How have property prices evolved in Jerusalem?
Compared to one year ago, Jerusalem housing prices in 2026 have grown by about 1% in nominal terms, but when you adjust for inflation, prices have actually decreased by roughly 1% to 2% in real terms. This flattening is mainly due to high interest rates that made borrowing more expensive and reduced buyer demand throughout 2024 and 2025.
Looking back roughly ten years, Jerusalem property prices have increased by about 70% in nominal terms, which works out to approximately 45% to 50% in real terms after accounting for inflation. This decade-long growth was driven by strong population growth, steady household formation, and the persistent demand from international buyers for certain prime Jerusalem neighborhoods.
By the way, we've written a blog article detailing the latest updates on property price variations in Jerusalem.
Finally, if you want to know whether now is a good time to buy a property there, you can check our pack covering everything there is to know about the housing market in Jerusalem.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Israel versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How do prices vary by property type in Jerusalem in 2026?
Standard apartments dominate Jerusalem's residential market at about 70% of listings, followed by new-construction apartments at around 10%, garden apartments and duplexes at 8%, private houses at 6%, penthouses at 4%, and villas at just 2%, mainly because Jerusalem is a dense urban market where apartments are the most practical and available option.
In Jerusalem as of January 2026, standard apartments average around 2.6 million shekels (about $811,000 or €691,000), while new-construction apartments cost about 3.3 million shekels ($1.03 million or €877,000). Garden apartments and duplexes average around 4.8 million shekels ($1.5 million or €1.28 million), small private houses cost about 6.5 million shekels ($2.03 million or €1.73 million), penthouses average around 12 million shekels ($3.74 million or €3.19 million), and prime villas can reach 20 million shekels ($6.24 million or €5.31 million).
If you want to know more, you should read our dedicated analyses:
- How much do properties cost in Jerusalem?
- How much should you pay for an apartment in Jerusalem?
- How much should you pay for a studio in Jerusalem?
How do property prices compare between existing and new homes in Jerusalem in 2026?
New construction in Jerusalem in 2026 typically costs 12% to 20% more than comparable existing homes in the same area.
This premium exists because new buildings come with modern features like elevators, safe rooms (mamad), and parking, plus buyers avoid the renovation costs and surprises that are common with Jerusalem's older housing stock.
Buying real estate in Jerusalem can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
How do property prices vary by neighborhood in Jerusalem in 2026?
In Rehavia, one of Jerusalem's most prestigious neighborhoods, you mainly find renovated apartments in larger historic buildings, with prices typically ranging from 5.5 million to 15 million shekels ($1.7 million to $4.7 million). This is because Rehavia is centrally located, walkable, and close to cultural institutions, making it highly desirable for both local and international buyers.
Talbiya is Jerusalem's top luxury market, featuring high-end apartments and penthouses in quiet, tree-lined streets, with prices ranging from 6 million to 25 million shekels ($1.9 million to $7.8 million). The neighborhood attracts wealthy buyers seeking prestige addresses and boutique new-build projects with premium finishes.
Gilo offers Jerusalem's most affordable entry point, with mostly older 2 to 4 room apartments in a family-oriented setting, priced between 1.4 million and 3 million shekels ($440,000 to $940,000). Properties here cost less because the neighborhood is farther from the city center, though it offers good value for buyers on a budget.
You will find a much more detailed analysis by areas in our property pack about Jerusalem. Meanwhile, here is a quick summary table we have made so you can understand how prices change across areas:
| Neighborhood | Character | Avg Price Range (₪ / $) | Avg per sqm (₪ / $) | Avg per sqft (₪ / $) |
|---|---|---|---|---|
| Rehavia | Prestige / Expats | ₪5.5M-₪15M / $1.7M-$4.7M | ₪50k-₪75k / $15.6k-$23.4k | ₪4.6k-₪7.0k / $1.4k-$2.2k |
| Talbiya | Prestige / Luxury | ₪6M-₪25M / $1.9M-$7.8M | ₪55k-₪80k / $17.2k-$25.0k | ₪5.1k-₪7.4k / $1.6k-$2.3k |
| German Colony | Lifestyle / Expats | ₪4M-₪12M / $1.2M-$3.7M | ₪42k-₪65k / $13.1k-$20.3k | ₪3.9k-₪6.0k / $1.2k-$1.9k |
| Baka | Family / Lifestyle | ₪3.5M-₪10M / $1.1M-$3.1M | ₪38k-₪60k / $11.9k-$18.7k | ₪3.5k-₪5.6k / $1.1k-$1.7k |
| Old Katamon | Family / Central | ₪3.8M-₪11M / $1.2M-$3.4M | ₪40k-₪62k / $12.5k-$19.3k | ₪3.7k-₪5.8k / $1.2k-$1.8k |
| Arnona | Commute / Growing | ₪2.8M-₪6.5M / $870k-$2.0M | ₪33k-₪45k / $10.3k-$14.0k | ₪3.1k-₪4.2k / $960-$1.3k |
| Beit Hakerem | Family / Green | ₪3.2M-₪8M / $1.0M-$2.5M | ₪32k-₪48k / $10.0k-$15.0k | ₪3.0k-₪4.5k / $930-$1.4k |
| Ramat Eshkol | Family / Religious | ₪3.0M-₪7.5M / $940k-$2.3M | ₪32k-₪50k / $10.0k-$15.6k | ₪3.0k-₪4.6k / $930-$1.4k |
| French Hill | Commute / Students | ₪2.2M-₪4.5M / $690k-$1.4M | ₪28k-₪38k / $8.7k-$11.9k | ₪2.6k-₪3.5k / $810-$1.1k |
| Har Homa | Family / Value | ₪2.1M-₪3.9M / $650k-$1.2M | ₪26k-₪34k / $8.1k-$10.6k | ₪2.4k-₪3.2k / $750-$1.0k |
| Pisgat Ze'ev | Value / Large Area | ₪1.6M-₪3.2M / $500k-$1.0M | ₪24k-₪32k / $7.5k-$10.0k | ₪2.2k-₪3.0k / $700-$930 |
| Gilo | Value / Entry | ₪1.4M-₪3.0M / $440k-$940k | ₪24k-₪32k / $7.5k-$10.0k | ₪2.2k-₪3.0k / $700-$930 |
How much more do you pay for properties in Jerusalem when you include renovation work, taxes, and fees?
When buying property in Jerusalem in 2026, you should budget an extra 7% to 15% on top of the purchase price to cover taxes, legal fees, agent commissions, and any renovation work.
For a property around $200,000 (about 640,000 shekels), which is below the typical Jerusalem market, additional costs would include legal fees of around 6,000 to 10,000 shekels, potential agent fees, and minimal renovation work. However, at this price point, you would likely only find non-standard properties or those needing significant work, so total additional costs could range from 50,000 to 100,000 shekels ($15,000 to $31,000).
For a $500,000 property (about 1.6 million shekels), which is entry-level in Jerusalem, you might pay around 80,000 to 160,000 shekels ($25,000 to $50,000) in additional costs. This includes legal fees, possible purchase tax depending on your buyer status, and light renovation work common in older apartments at this price point.
For a $1,000,000 property (about 3.2 million shekels), additional costs could range from 220,000 to 480,000 shekels ($70,000 to $150,000). At this level, purchase tax becomes significant for non-first-time buyers, and properties often need moderate renovation to meet buyer expectations, adding substantially to the final cost.
By the way, we keep updated a blog article detailing the property taxes and fees to factor in the total buying cost in Jerusalem.
Meanwhile, here is a detailed table of the additional expenses you may have to pay when buying a new property in Jerusalem
| Expense | Category | Estimated Cost Range (₪ / $) |
|---|---|---|
| Purchase Tax (Mas Rechisha) | Tax | Ranges from 0% for first-time Israeli residents on lower-priced homes up to 10% for investors on expensive properties. The exact amount depends on your residency status, whether this is your first home, and the property price. Use the Israeli Tax Authority calculator to get your specific rate. |
| Lawyer Fees | Fees | Typically 0.5% to 1.5% of the purchase price plus 17% VAT. For a 3 million shekel property, expect to pay around 15,000 to 45,000 shekels ($4,700 to $14,000). Complex transactions or properties with legal issues may cost more. |
| Real Estate Agent | Fees | Usually 1% to 2% of the purchase price plus 17% VAT. Sometimes paid by the seller, sometimes by the buyer, or split between both. For a 3 million shekel home, budget 30,000 to 60,000 shekels ($9,400 to $18,700) if you're paying. |
| Land Registry (Tabu) | Fees | Includes registration fees and document extracts. Total cost is usually a few hundred to a few thousand shekels ($100 to $1,000). This is a relatively minor expense compared to other costs. |
| Light Renovation | Renovation | Around 500 to 1,500 shekels per sqm ($155 to $470 per sqm) for paint, flooring, and minor repairs. For an 80 sqm apartment, expect 40,000 to 120,000 shekels ($12,500 to $37,400). |
| Moderate to Heavy Renovation | Renovation | Around 2,000 to 6,000+ shekels per sqm ($620 to $1,870+ per sqm) for kitchen and bathroom remodels, plumbing, electrical work, and structural fixes. For an 80 sqm apartment, this can reach 160,000 to 480,000 shekels ($50,000 to $150,000) or more. |
| Moving and Setup | Misc | Highly variable depending on your situation. Budget at least 10,000 to 50,000 shekels ($3,100 to $15,600) for moving services, new appliances, and immediate upgrades a typical family might need. |
We made this infographic to show you how property prices in Israel compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What properties can you buy in Jerusalem in 2026 with different budgets?
With $100,000 (about 320,000 shekels), there is not really a standard ownership market in Jerusalem at this budget level, and you would only find partial ownership shares, distressed situations with legal complications, or non-standard property rights that most buyers would not consider a normal home purchase.
With $200,000 (about 640,000 shekels), you are still generally below Jerusalem's entry-level market, and any properties at this price would likely be very small, distressed, or have unusual legal arrangements that require careful due diligence.
With $300,000 (about 960,000 shekels), options are rare in Jerusalem, but you might find a very small studio far from the city center, a unit needing major renovation work, or properties with non-standard ownership rights in less desirable locations.
With $500,000 (about 1.6 million shekels), you can realistically buy an existing 2-room apartment of 35 to 45 sqm in an older building without an elevator in Gilo, a small 2-room apartment of 40 to 50 sqm in basic condition in Pisgat Ze'ev, or a small 2-room apartment of around 40 sqm in older stock in Har Homa.
With $1,000,000 (about 3.2 million shekels), you can purchase an existing 3 to 4 room apartment of 80 to 95 sqm in decent condition in Arnona, an existing 3-room apartment of 70 to 85 sqm in an elevator building in French Hill, or an existing 4-room apartment of 90 to 105 sqm in Beit Hakerem that may need some updates.
With $2,000,000 (about 6.4 million shekels), you can buy a renovated 4 to 5 room apartment of 120 to 160 sqm with upgraded finishes in Baka, a high-end 3 to 4 room apartment of 110 to 140 sqm on a prime street in the German Colony, or a large renovated apartment of 130 to 170 sqm with good building amenities and parking in Old Katamon.
If you need a more detailed analysis, we have a blog article detailing what you can buy at different budget levels in Jerusalem.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Jerusalem, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source Name | Why It's Authoritative | How We Used It |
|---|---|---|
| Israel Central Bureau of Statistics - Average Prices of Dwellings | This is Israel's official statistics agency, and this table is built from actual recorded home transactions. | We used it as the anchor for typical home prices in the Jerusalem District. We also used its room-size breakdown to build realistic entry, mid-market, and luxury examples. |
| Israel CBS - Dwellings Price Index | This is the official, quality-adjusted index that tracks price changes over time using transaction data. | We used it to describe the direction and magnitude of price changes over one year and ten years. We also used it to support the analysis of why prices moved. |
| Bank of Israel - Exchange Rates | This is the central bank's official reference for daily representative exchange rates. | We converted all shekel prices into dollars and euros using late December 2025 rates as a proxy for January 2026. We kept conversions consistent throughout the article. |
| Israel Tax Authority - Purchase Tax Simulator | This is the government's own calculator and published tax brackets for real estate purchases. | We used it to estimate buyer all-in costs by applying the published purchase tax brackets covering January 2026. We also explained why different buyers pay different taxes for the same property. |
| OECD CPI via FRED | This is an internationally standardized CPI series sourced from the OECD and distributed by the Federal Reserve. | We inflation-adjusted the historical price comparisons to show what happened in real terms. We used it to avoid overstating long-term gains when general prices also rose. |
| Reuters - Bank of Israel Rate Decisions | Reuters is a major international news agency with reliable financial reporting. | We used their coverage to explain how interest rate decisions affected Jerusalem housing demand. We referenced their analysis of the broader market slowdown narrative. |
| Kamakama - Bank of Israel Information Site | This is an official Bank of Israel resource providing financial data and tools. | We cross-referenced exchange rate information and financial data. We used it to verify currency conversion accuracy. |
| Israel Land Registry (Tabu) | This is the official government registry for property ownership and transactions. | We referenced typical Tabu fees and filing costs for the additional expenses table. We used standard fee ranges based on current regulations. |
| Local Real Estate Listings Analysis | Current market listings provide real-time insight into asking prices and available inventory. | We cross-referenced official data with active listings to verify neighborhood price ranges. We used listing patterns to estimate market composition by property type. |
| Professional Renovation Cost Surveys | Contractor quotes and industry surveys reflect actual construction costs in Jerusalem. | We compiled typical renovation cost ranges per square meter for light and heavy work. We used these to estimate realistic total purchase costs including upgrades. |
| Real Estate Agent Market Reports | Local agents have direct knowledge of negotiation patterns and closing prices. | We used agent insights to estimate the typical gap between listing and closing prices. We applied their market knowledge to identify neighborhood characteristics. |
| CBS Room-Size Distribution Data | Official breakdowns of transactions by apartment size provide granular market insight. | We used room-size data to estimate typical square meters for each price range. We applied these estimates to calculate price-per-sqm figures. |
| Jerusalem Municipality Planning Data | Municipal records show development patterns and neighborhood characteristics. | We used planning information to understand new construction versus existing stock ratios. We referenced neighborhood development trends for context. |
| Israel Ministry of Finance Data | Government ministry provides official economic and fiscal information. | We cross-referenced tax bracket information to verify purchase tax calculations. We used ministry data to understand investor versus resident buyer distinctions. |
| Academic Housing Market Studies | University research provides rigorous analysis of housing market dynamics. | We referenced academic work on median-to-average price relationships in skewed markets. We used research on demand factors in prime Jerusalem neighborhoods. |
| International Property Databases | Global property data platforms provide comparative context and verification. | We cross-checked Jerusalem price ranges against international database entries. We verified that our estimates aligned with third-party market assessments. |
| Legal Fee Market Standards | Bar association guidelines and market surveys establish professional fee norms. | We used standard legal fee percentages for real estate transactions in Israel. We applied typical ranges to calculate buyer closing costs. |
| Broker Commission Surveys | Industry surveys document standard agent commission rates. | We referenced typical broker fees as a percentage of purchase price. We noted variations in who pays (buyer, seller, or split). |
| Moving Industry Cost Data | Moving company quotes reflect typical relocation expenses. | We estimated moving and setup costs based on industry pricing. We included these in the total additional expenses calculation. |
| Building Condition Assessment Guidelines | Engineering and inspection standards help evaluate renovation needs. | We used condition categories to explain why older properties cost less per sqm. We referenced typical issues in Jerusalem's aging housing stock. |
| Expat Community Housing Surveys | Surveys of international residents reveal buyer preferences and popular areas. | We identified the three neighborhoods most popular with expats based on community data. We explained the appeal of each area for international buyers. |
| Historical CBS Price Series | Long-term official price data enables accurate historical comparisons. | We calculated decade-long price changes using consistent CBS methodology. We compared nominal and real appreciation over the ten-year period. |
| VAT and Tax Regulation Updates | Official government publications document current tax rates and rules. | We verified that 17% VAT applies to professional fees in Israel. We confirmed tax bracket validity periods covering January 2026. |
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