Authored by the expert who managed and guided the team behind the Israel Property Pack
Everything you need to know before buying real estate is included in our Israel Property Pack
If you are looking to buy property in Israel, understanding current housing prices is essential before making any decision.
In this guide, we break down Israel housing prices in 2026, covering averages, neighborhood differences, and what you can actually buy at different budget levels.
We constantly update this blog post with the latest data so you always have accurate information.
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 Israel.
Insights
- The gap between Tel Aviv's priciest neighborhood (Neve Tzedek at around 89,000 shekels per square meter) and its cheapest (Kfar Shalem at around 31,000 shekels) is nearly threefold, showing how dramatically location impacts Israel property values.
- Israel housing prices have risen about 68% in nominal terms over the past decade, but after adjusting for inflation, the real increase is closer to 42%, which still outpaces most developed markets.
- The typical entry point for buying an apartment in Israel starts around 900,000 to 1,200,000 shekels (roughly 280,000 to 375,000 dollars), usually for older 2 to 3 room units outside Tel Aviv's core.
- New-build apartments in Israel carry a premium of about 10% over comparable existing homes, driven by modern amenities like safe rooms, parking, and better energy efficiency.
- Investor buyers in Israel face purchase taxes as high as 8 to 10% of the property price, thanks to legislation extended through 2026 aimed at cooling speculative demand.
- The average listed price in Israel tends to be about 6% higher than the final sale price, though in slower markets this negotiation gap can widen into high single digits.
- Apartments make up roughly 80% of Israel's residential market, with villas and detached homes representing only about 5% of available inventory.
- In real (inflation-adjusted) terms, Israel housing prices have been essentially flat over the past year, hovering around 0% to minus 1% change despite nominal gains of about 2%.
- Herzliya Pituach coastal villas can reach 18 to 30 million shekels (5.6 to 9.4 million dollars), placing this suburb among the most expensive residential areas in Israel.
- The total cost of buying property in Israel, including taxes, fees, and potential renovation, can add 6 to 18% on top of the purchase price depending on buyer status and property condition.
What is the average housing price in Israel in 2026?
The median housing price is more telling than the average because a small number of luxury properties in places like prime Tel Aviv can pull the average up significantly, while the median shows what a typical buyer actually pays.
We are writing this as of January 2026, using the latest data collected from authoritative sources like the Israel Central Bureau of Statistics and BIS property indices, which we manually double-checked for accuracy.
The median housing price in Israel in 2026 is approximately 2,000,000 shekels (around 625,000 dollars or 533,000 euros), while the average housing price in Israel in 2026 is approximately 2,200,000 shekels (around 687,500 dollars or 587,000 euros).
About 80% of residential properties in Israel in 2026 fall within a price range of 1,200,000 to 3,200,000 shekels (roughly 375,000 to 1,000,000 dollars or 320,000 to 853,000 euros).
A realistic entry range for Israel property in 2026 is 900,000 to 1,200,000 shekels (280,000 to 375,000 dollars or 240,000 to 320,000 euros), which typically gets you an existing 2 to 3 room apartment of about 55 to 70 square meters in an older building in cities like Haifa or southern district towns.
A typical luxury property in Israel in 2026 ranges from 6,000,000 to 15,000,000 shekels or more (1.9 to 4.7 million dollars or 1.6 to 4.0 million euros), which includes newer luxury apartments or penthouses of 140 to 220 square meters in prime Tel Aviv neighborhoods like Neve Tzedek, or coastal villas in Herzliya Pituach with high-end finishes and amenities.
By the way, you will find much more detailed price ranges in our property pack covering the real estate market in Israel.
Are Israel property listing prices close to the actual sale price in 2026?
In Israel in 2026, the estimated gap between listed prices and actual sale prices is around 6%, with final transaction prices typically coming in lower than the asking price.
This gap exists mainly because of Israel's negotiation culture, where sellers often set prices high to leave room for bargaining, and also because higher mortgage rates in recent years have made buyers more price-sensitive. The gap can shrink to 2 to 3% in extremely hot micro-markets like prime Tel Aviv, but can widen into high single digits in weaker or slower-moving areas.
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What is the price per sq m or per sq ft for properties in Israel in 2026?
As of January 2026, the median housing price per square meter in Israel is approximately 22,000 shekels (about 6,875 dollars or 5,867 euros), which works out to around 2,044 shekels per square foot (639 dollars or 545 euros). The average price per square meter in Israel is approximately 24,000 shekels (about 7,500 dollars or 6,400 euros), or around 2,230 shekels per square foot (697 dollars or 595 euros).
In Israel in 2026, small units like studios and 2-room apartments in prime locations tend to have the highest price per square meter because fixed costs like land and building amenities are spread over fewer square meters, while larger older apartments in peripheral neighborhoods have the lowest price per square meter due to weaker location premiums and potential renovation costs.
The highest price per square meter in Israel in 2026 is found in Tel Aviv neighborhoods like Neve Tzedek (around 89,000 shekels per square meter), Nofei Yam (around 85,000 shekels), and Sde Dov (around 81,000 shekels). The lowest ranges are in areas like Kfar Shalem in Tel Aviv (around 31,000 shekels per square meter) and parts of Jaffa in the mid-30,000s to low-40,000s.
How have property prices evolved in Israel?
Compared to one year ago, Israel housing prices in 2026 are up about 2% in nominal terms, but essentially flat (around 0% to minus 1%) after adjusting for inflation. This slowdown came from higher interest rates and tighter lending conditions that cooled buyer demand, though limited housing supply kept prices from falling outright.
Over the past decade, Israel property prices have risen approximately 68% in nominal terms and about 42% after adjusting for inflation. This dramatic increase was driven by persistent housing undersupply relative to population growth, combined with periods of cheap credit that fueled strong demand for real estate as an investment.
By the way, we've written a blog article detailing the latest updates on property price variations in Israel.
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 Israel.
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 housing type in Israel in 2026?
In Israel in 2026, apartments (including condo-style units) make up roughly 80% of the residential market, with small houses and duplexes accounting for about 10%, villas for around 5%, and penthouses and luxury tower units for the remaining 5%, reflecting the country's dense urban development patterns and limited land availability.
The average price range for each property type in Israel as of January 2026 is as follows: standard existing apartments average around 1,900,000 shekels (594,000 dollars or 507,000 euros), new-build apartments around 2,100,000 shekels (656,000 dollars or 560,000 euros), townhouses and duplexes around 3,200,000 shekels (1,000,000 dollars or 853,000 euros), detached houses in non-prime areas around 3,800,000 shekels (1,190,000 dollars or 1,010,000 euros), coastal or prestige suburb villas around 8,500,000 shekels (2,660,000 dollars or 2,270,000 euros), and penthouses in prime city cores around 10,500,000 shekels (3,280,000 dollars or 2,800,000 euros).
If you want to know more, you should read our dedicated analyses:
How do property prices compare between existing and new homes in Israel in 2026?
In Israel in 2026, new-build properties carry an estimated premium of about 10% compared to similar existing homes.
This premium exists because new constructions typically include modern standards like parking spaces, elevators, safe rooms (mamad), better insulation, and lower near-term maintenance costs, plus developers factor in their financing, marketing, and warranty expenses into the final price.
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How do property prices vary by neighborhood in Israel in 2026?
In Neve Tzedek, Tel Aviv, you find boutique apartments, renovated historic buildings, and luxury new developments in a walkable neighborhood near the sea. Prices here range from 10 to 18 million shekels (3.1 to 5.6 million dollars or 2.7 to 4.8 million euros) because it is one of the most sought-after addresses in Israel, combining heritage charm with prime coastal access.
In Rehavia, Jerusalem, the market consists of spacious older apartments and some newer developments in a leafy, central neighborhood popular with English-speaking residents and diplomats. Prices range from 3.5 to 10 million shekels (1.1 to 3.1 million dollars or 930,000 to 2.7 million euros), driven by its prestigious reputation and proximity to government and cultural institutions.
In Carmeliah, Haifa, you find family-sized apartments in a green, established neighborhood with good schools and easier access to nature. Prices range from 2 to 5 million shekels (625,000 to 1.6 million dollars or 533,000 to 1.3 million euros), offering significantly more affordable options compared to Tel Aviv while still being in a desirable area.
You will find a much more detailed analysis by areas in our property pack about Israel. Meanwhile, here is a quick summary table we have made so you can understand how prices change across areas:
| Neighborhood | Label | Avg Price Range | Avg per sqm | Avg per sqft |
|---|---|---|---|---|
| Neve Tzedek, Tel Aviv | Luxury / Expats | ₪10-18M ($3.1-5.6M) | ₪80k-95k ($25k-30k) | ₪7,430-8,830 ($2,320-2,760) |
| Sde Dov, Tel Aviv | New-build Prime | ₪7-14M ($2.2-4.4M) | ₪75k-85k ($23k-27k) | ₪6,970-7,900 ($2,180-2,470) |
| Kerem HaTeimanim, Tel Aviv | Central / Lifestyle | ₪5-10M ($1.6-3.1M) | ₪70k-80k ($22k-25k) | ₪6,505-7,430 ($2,030-2,320) |
| Florentin, Tel Aviv | Popular / Young | ₪3-6M ($0.9-1.9M) | ₪52.5k-68k ($16k-21k) | ₪4,880-6,355 ($1,525-1,985) |
| Kfar Shalem, Tel Aviv | Value / Redevelopment | ₪1.8-3.2M ($0.6-1.0M) | ₪31k-40k ($9.7k-12.5k) | ₪2,880-3,715 ($900-1,160) |
| Jaffa, Tel Aviv | Commute / Mixed | ₪2.0-4.5M ($0.6-1.4M) | ₪34k-46k ($11k-14k) | ₪3,160-4,275 ($990-1,335) |
| Rehavia, Jerusalem | Expats / Central | ₪3.5-10M ($1.1-3.1M) | ₪55k-95k ($17k-30k) | ₪5,110-8,830 ($1,600-2,760) |
| German Colony, Jerusalem | Lifestyle / Expats | ₪3.0-8M ($0.9-2.5M) | ₪45k-80k ($14k-25k) | ₪4,180-7,430 ($1,305-2,320) |
| Arnona, Jerusalem | Family / Commute | ₪2.6-6M ($0.8-1.9M) | ₪35k-60k ($11k-19k) | ₪3,250-5,575 ($1,015-1,740) |
| Carmeliah, Haifa | Family / Greener | ₪2.0-5.0M ($0.6-1.6M) | ₪23k-35k ($7k-11k) | ₪2,140-3,250 ($670-1,015) |
| Bat Galim, Haifa | Value / Sea-adjacent | ₪1.4-3.2M ($0.4-1.0M) | ₪18k-28k ($6k-9k) | ₪1,670-2,600 ($520-810) |
| Herzliya Pituach | Luxury / Villas | ₪12-30M ($3.8-9.4M) | ₪60k-110k ($19k-34k) | ₪5,575-10,220 ($1,740-3,195) |
How much more do you pay for properties in Israel when you include renovation work, taxes, and fees?
In Israel in 2026, the total cost of buying a property typically adds 6 to 12% on top of the purchase price for primary residence buyers, and 10 to 18% for investors or those buying an additional home due to higher purchase tax rates.
If you buy a property around 200,000 dollars (640,000 shekels) in Israel, you should expect to add approximately 60,000 to 75,000 shekels (19,000 to 23,000 dollars) for taxes, fees, and basic renovation work. This brings your total cost to roughly 700,000 to 715,000 shekels (219,000 to 223,000 dollars).
For a property around 500,000 dollars (1,600,000 shekels) in Israel, additional costs typically run between 145,000 and 190,000 shekels (45,000 to 59,000 dollars) for an owner-occupier, covering purchase tax, legal fees, agent commission, and moderate renovation. Your total cost would be approximately 1,745,000 to 1,790,000 shekels (545,000 to 559,000 dollars).
For a property around 1,000,000 dollars (3,200,000 shekels) in Israel, expect additional costs of roughly 290,000 to 385,000 shekels (91,000 to 120,000 dollars), including higher purchase tax brackets, professional fees, and potential renovation. This brings your total investment to approximately 3,490,000 to 3,585,000 shekels (1,091,000 to 1,120,000 dollars).
By the way, we keep updated a blog article detailing the property taxes and fees to factor in the total buying cost in Israel.
Meanwhile, here is a detailed table of the additional expenses you may have to pay when buying a new property in Israel
| Expense | Label | Estimated Cost Range and Explanation |
|---|---|---|
| Purchase Tax (Mas Rechisha) | Tax | 0% to 10%+ of property price (₪0 to ₪320,000+ per million / $0 to $100,000+). For first-home buyers, there are exemptions on the first bracket. For investors and additional-home buyers, rates of 8% to 10% apply thanks to legislation extended through 2026. Use the Israel Tax Authority calculator for your specific situation. |
| Lawyer Fees | Fee | 0.5% to 1.5% of price (₪10,000 to ₪50,000 / $3,125 to $15,625 on a typical purchase). Lawyers handle contract review, title checks, and registration. Minimum fees are common for lower-priced properties. |
| Real Estate Agent | Fee | Around 2% plus VAT (₪40,000 to ₪70,000 / $12,500 to $21,875 on a typical purchase). Commission rates can vary by deal and are sometimes negotiable. Both buyer and seller often pay their own agent. |
| Registration and Notary | Fee | ₪5,000 to ₪25,000 ($1,560 to $7,810). This covers land registry fees, notarization of documents, and various administrative checks required to complete the transfer. |
| Mortgage Setup Costs | Fee | ₪5,000 to ₪20,000 ($1,560 to $6,250) if financing. Includes bank application fees, appraisal costs, and mortgage registration. Varies by lender and loan amount. |
| Renovation (if needed) | Renovation | ₪1,500 to ₪6,000 per square meter ($470 to $1,875 per sqm). A light refresh might cost ₪75,000 to ₪150,000 ($23,000 to $47,000) for a standard apartment. Full renovations in older buildings can cost significantly more. |
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 Israel in 2026 with different budgets?
With 100,000 dollars (around 320,000 shekels), there is not really a mainstream market for standard apartments in Israel's major cities at this price level; you would be limited to very small shares, properties requiring extreme renovation, or peripheral locations far from employment centers.
With 200,000 dollars (around 640,000 shekels), options remain very limited in Israel's main residential areas; you might find tiny units in peripheral towns, or walk-up apartments in weaker micro-locations that need heavy renovation work.
With 300,000 dollars (around 960,000 shekels), you enter a realistic entry point for Israel property: an existing 2 to 3 room apartment of roughly 55 to 70 square meters in an older building, located in lower-cost city markets like parts of the Haifa district or southern cities outside Tel Aviv.
With 500,000 dollars (around 1,600,000 shekels), you could buy an existing 70 to 85 square meter apartment in a good family area of Haifa, an existing 65 to 80 square meter apartment in parts of the center or south districts outside the hottest neighborhoods, or possibly a smaller 55 to 70 square meter unit in a less prime pocket of Tel Aviv.
With 1,000,000 dollars (around 3,200,000 shekels), you could purchase a family-size apartment of 95 to 115 square meters in strong Haifa or non-prime Jerusalem neighborhoods, a smaller 60 to 80 square meter apartment in desirable Tel Aviv areas (not the very top tier), or a townhouse or duplex in non-prime suburban locations.
With 2,000,000 dollars (around 6,400,000 shekels), you could buy a newer or luxury apartment in strong Tel Aviv neighborhoods (size depends heavily on exact location), a prime Jerusalem property in expat-popular areas like Rehavia or German Colony, or an entry-level luxury coastal property in prestige areas like Herzliya Pituach.
If you need a more detailed analysis, we have a blog article detailing what you can buy at different budget levels in Israel.
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 Israel, 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 (CBS) - Average Prices Table | Israel's official statistics agency and primary source for transaction-based housing price data. | We used it as the anchor for countrywide and district average transaction prices in shekels. We then applied a small extrapolation to estimate January 2026 figures. |
| Israel CBS - Price Changes October 2025 | Official monthly release showing the most recent housing price trends measured by the government. | We used it to confirm the direction and pace of price movement going into late 2025. We applied that trend to estimate January 2026 levels. |
| BIS Residential Property Price Statistics | Global reference for comparable property price statistics used by central banks worldwide. | We used it to cross-check CBS data with a standardized international index framework. We also used BIS-linked series to compute year-over-year and decade changes. |
| FRED - BIS Nominal Property Prices for Israel | Major central bank data platform republishing BIS series with clear metadata and update dates. | We used it to quantify the 10-year nominal price change and latest year-over-year movement. We used it as a cross-check against CBS transaction averages. |
| FRED - BIS Real Property Prices for Israel | Same platform, but explicitly deflated using CPI to show real purchasing power changes over time. | We used it to compute the 10-year real (inflation-adjusted) change and the latest real year-over-year figure. We use this for inflation-corrected comparisons. |
| Bank of Israel - Exchange Rates | Israel's central bank and official publisher of the shekel's representative foreign exchange rates. | We used it as the authority for official exchange rates in Israel. We then used late December 2025 rates as a proxy for January 2026 currency conversions. |
| Bank of Jerusalem - Exchange Rates | Clearly states Bank of Israel as its data source and shows dated snapshots useful for pinning conversions. | We used it to pin a concrete late December 2025 USD/ILS and EUR/ILS level. We applied these rates consistently throughout for dollar and euro conversions. |
| Israel Government Real Estate Data Portal | Official government portal for cleaned, standardized real estate transaction information in Israel. | We used it to validate that neighborhood-level statements are grounded in recorded transactions. We used it as a methodological backstop for transaction-based claims. |
| Madlan | Large, established Israeli property data platform that surfaces neighborhood pricing using recorded deals. | We used it to build neighborhood examples and verify what typical looks like locally. We used it alongside official sources to ground neighborhood claims. |
| ynet - Tel Aviv Neighborhood Price Study | Major national newspaper explicitly attributing data to a specific Madlan study on price per square meter. | We used it for reader-friendly Tel Aviv neighborhood price-per-square-meter benchmarks. We treat it as secondary packaging of a named dataset for transparency. |
| Israel Tax Authority - Real Estate Taxation | Official government authority for real estate taxes, obligations, and calculators in Israel. | We used it to ground the taxes and fees section in official guidance. We added realistic cost ranges for lawyers, brokers, and renovation on top of statutory taxes. |
| Barnea Jaffa Lande - Tax Update | Top-tier law firm summarizing enacted policy with specific bracket mechanics and effective dates. | We used it as confirmation for the investor and additional-home purchase tax structure extended through 2026. We still point readers to official calculators for accuracy. |
| Madlan - Rehavia, Jerusalem | Neighborhood-specific page showing transaction data and pricing trends for a key expat area. | We used it to verify high price-per-square-meter claims for Rehavia. We cross-referenced it with overall Jerusalem market context. |
| Madlan - Herzliya Pituach | Neighborhood-specific page for one of Israel's most prestigious coastal villa markets. | We used it to build the luxury villa price range estimates. We verified that transaction records support the high-end pricing claims. |
| Madlan - German Colony, Jerusalem | Neighborhood-specific page for a popular expat and lifestyle area in Jerusalem. | We used it to estimate price ranges for this neighborhood. We compared it with Rehavia to show Jerusalem's internal price variation. |
| Madadirot - Carmeliah, Haifa | Israeli property data site providing neighborhood-level price information for Haifa areas. | We used it to estimate price-per-square-meter ranges for Carmeliah. We compared Haifa prices with Tel Aviv to show regional differences. |
| Reuters - Bank of Israel Rate Cut | Major international news agency reporting on central bank monetary policy decisions. | We used it to explain the interest rate context affecting housing demand. We connected rate changes to why price growth has slowed in real terms. |
| FRED - BIS Nominal Index Raw Data | Direct access to the underlying BIS index data for precise calculations. | We used it to calculate exact percentage changes over 1-year and 10-year periods. We ensured our nominal change figures match the official index movements. |
| FRED - BIS Real Index Raw Data | Direct access to the inflation-adjusted BIS index data for precise calculations. | We used it to calculate exact real (CPI-adjusted) percentage changes. We compared real versus nominal to show how inflation affects purchasing power. |
| Madlan - Neve Tzedek, Tel Aviv | Neighborhood-specific page for Tel Aviv's most prestigious historic neighborhood. | We used it to verify the high-end price claims for Neve Tzedek. We cross-referenced it with the ynet study for consistency. |
| Israel Central Bureau of Statistics - Housing Market Reports | Government statistical releases providing context on market composition and transaction volumes. | We used it to understand the breakdown between apartments, houses, and other property types. We estimated market share percentages from transaction patterns. |
| Real Estate Professional Consultations | Market practitioners provide current fee structures and negotiation norms not always published officially. | We used professional input to estimate lawyer fees, agent commissions, and typical renovation costs. We verified these ranges align with published guidance. |
| Currency Exchange Historical Data | Historical exchange rate data ensures accurate conversions at specific time points. | We used late December 2025 rates to convert all shekel amounts to dollars and euros consistently. We rounded conversions for readability while staying accurate. |
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