After months of sharp increases, housing prices in Israel stabilize with just a 0.1% rise recorded in February–March 2025. The slowdown marks a shift from earlier trends, with regional differences showing 0.8% growth in Jerusalem, 1.0% in the north, and 0.2% in Haifa—while prices dipped slightly in the central region (-0.1%) and Tel Aviv (-0.3%). Meanwhile, rents for new tenants surged by 4.7%, and the average home price in Israel during the first quarter of 2025 reached NIS 2.358 million.

By Doron Breitman, Nadlan Center

According to new data from the Central Bureau of Statistics (CBS), housing prices in Israel stabilize with a 0.1% increase in February–March 2025 compared to January–February 2025. This reflects a much more moderate rise than previous months, such as the nearly 1% increase recorded earlier this year.

Price changes by district were as follows: Jerusalem (0.8%), North (1.0%), Haifa (0.2%), Central (-0.1%), Tel Aviv (-0.3%), and South (0.0%).

When comparing housing prices in Israel between February–March 2025 and the same period in 2024, an annual increase of 6.4% was recorded. This is lower than the 7.8% annual increase seen in January–February 2025, indicating that housing prices in Israel stabilize after a period of sharper growth. Year-over-year price hikes occurred across all regions: North (11.8%), Jerusalem (7.5%), Tel Aviv (7.3%), Haifa (7.0%), South (4.4%), and Central (3.2%).

The price of new homes in Israel rose by 0.6% in February–March 2025 compared to the previous month. Of all new home transactions, the proportion involving government-supported programs dropped from 28.5% to 27.9%. Excluding these transactions, prices rose by 0.5%.

In monthly rent prices, tenants who renewed their lease saw an increase of 2.7%, while new tenants (in sample apartments where there was tenant turnover) experienced a 4.7% rise.

The average price of a home in Israel: NIS 2.358 million

In Q1 2025, the nationwide average price of a home in Israel stood at NIS 2.358 million. Compared to the previous quarter’s average of NIS 2.35 million, this represents a 0.3% increase. Compared to Q1 2024 (NIS 2.251 million), the average price rose by 4.7%. Tel Aviv had the highest average home price at NIS 3.496 million, while the southern district recorded the lowest at NIS 1.556 million.

Q1 2025 also saw price increases compared to Q1 2024 in Jerusalem (12.1%), North (11.2%), Haifa (8.1%), Tel Aviv (7.7%), and South (2.1%). The only district to register a decline was the Central region, down by 4.3%.

Cities with average home prices over NIS 3 million included Tel Aviv (NIS 4.23 million), Herzliya (NIS 4.017 million), Jerusalem (NIS 3.158 million), and Ramat Gan (NIS 3.154 million). Cities with averages below NIS 2 million included Be’er Sheva (NIS 1.261 million), Ashkelon (NIS 1.693 million), and Haifa (NIS 1.707 million).

The Construction Cost Index for residential building rose by 0.1% in April 2025, reaching 138.4 points compared to 138.2 in March (base: July 2011=100). Since the beginning of the year, this index has increased by 3.6%. The index excluding labor costs actually dropped by 0.2%. Over the past 12 months (April 2025 vs. April 2024), the index rose by 6.4%, driven by a 10.2% increase in labor costs and a 3.6% rise in material and product costs.