At the start of 2025, home prices in Israel are showing mixed trends across the country. New data from the Central Bureau of Statistics reveals that while Tel Aviv—Israel’s most expensive city—remained stable, other cities experienced sharp increases. Jerusalem saw particularly significant price hikes across nearly all apartment types, and notable rises were also recorded in Herzliya and Kfar Saba. Meanwhile, a few areas saw price declines, highlighting the uneven nature of the current housing market.

By Doron Breitman, Nadlan Center

According to data released by the Central Bureau of Statistics (CBS) on Thursday, alongside the monthly publication of the Home Price Index, the average price of an apartment in Israel during the first quarter of 2025 was NIS 2.358 million. This marks a marginal increase of 0.3% compared to the previous quarter (Q4 2024) and a more notable 4.7% increase year-over-year.

The data on housing prices in Israel in 2025 also reveals that the average price of a 1–2 room apartment is NIS 1.75 million (a 25.7% jump year-over-year), a 2.5–3 room apartment costs NIS 1.811 million on average (up 5.8%), a 3.5–4 room apartment costs NIS 2.351 million (up 5.9%), a 4.5–5 room apartment goes for NIS 3 million (up 4%), and a 5.5–6 room apartment averages NIS 3.494 million (up 0.5%).

Looking at cities with 100,000 residents or more, CBS data shows that a 4-room apartment—the most common type in Israel—costs nearly NIS 5 million on average in Tel Aviv, or more precisely, NIS 4.98 million. This figure is nearly identical to the average price last year for this type of property in the city (a 0.2% increase). A 3-room apartment in Tel Aviv averages NIS 3.65 million, also nearly unchanged from the same period last year. However, the average price of a 5-room apartment in the city jumped by 15.4%, reaching NIS 7.19 million in Q1 2025.

In Jerusalem, the average price for a 4-room apartment reached NIS 3.33 million—an 11.9% increase for this type of property. In fact, prices for nearly all apartment types in the capital saw double-digit growth. The average price of a 3-room apartment rose by 14.4% to NIS 2.52 million. The price of a 5-room apartment climbed by 18.2% to NIS 4.33 million. In contrast, 6-room apartments rose by just 3%, reaching an average of NIS 5.19 million.

Sharp Increase in Home Prices in Cities in the Sharon Region

In Haifa, the average price for a 4-room apartment was NIS 1.89 million (up 7.8%), and the popular 3-room apartment among investors cost NIS 1.21 million (up 2.5%). In Be’er Sheva—where housing is the cheapest among the 18 cities surveyed—a 4-room apartment averaged NIS 1.28 million, reflecting a 1.6% decrease. The average price of a 3-room apartment in the city was NIS 873,000 in Q1, up 2.2% from the same period last year.

Relatively sharp increases in average prices compared to the same time last year were seen in Herzliya, where a 4-room apartment averaged NIS 4.04 million (up 10.1%), and Kfar Saba, where the average price hit exactly NIS 3 million (up 8%).

By region, the average price of a 3.5–4 room apartment in Q1 2025 was NIS 3.649 million in the Tel Aviv region (which includes most cities in the Gush Dan area), marking a 6.4% year-over-year rise. Next on the list is the Jerusalem region, where the average price of a 4-room apartment is NIS 3.004 million—a rise of 8.6%.

In the Central region, the average price of a 4-room apartment is NIS 2.575 million (up 1.6%), followed by the Haifa region at NIS 1.82 million (up 6.8%), the Southern region at NIS 1.57 million (up 2.3%), and the Northern region, where a 4-room apartment averages NIS 1.531 million (up 10.3%).