Israeli Housing Market 2025: National Price Drop Masks Local Increases
Data from Israel's Tax Authority shows a 4.9% drop in the national median price per square meter in 2025, yet 41 out of 59 analyzed cities actually saw price increases, highlighting a shifting transaction mix rather than broad declines.
The Israeli housing market in 2025 initially presents a clear headline: transaction prices have dropped. However, actual transaction data published by the Tax Authority reveals a much more complex picture hidden beneath the national average. The median price per square meter for transactions in Israel stood at 20,057 NIS in 2025, compared to 21,101 NIS in 2024, marking a 4.9% decline.
Mixed Trends Across Cities
Yet, an examination of 59 cities with at least 200 transactions in each year reveals a different reality: 41 of them actually registered an increase in the price per square meter. This means the national decline does not necessarily reflect a broad-based drop in prices, but rather stems largely from a shift in the transaction mix. A larger proportion of the apartments sold were located in relatively inexpensive areas.
This trend is reflected in the decline of transactions in high-priced cities. The share of transactions in cities where the median price in 2024 exceeded 25,000 NIS per square meter dropped from 43.1% of all transactions to 40.2% in 2025. In Lod, for example, the median price per square meter fell from 19,515 NIS in 2024 to 15,083 NIS in 2025, a 22.7% decrease. Netanya saw a 12.5% drop from 26,758 NIS to 23,400 NIS per square meter, while Ashdod recorded an 8% decline.
Where Prices Continued to Rise
"A single national figure does not necessarily reflect the reality experienced by a homebuyer in Netanya, Tel Aviv, Haifa, or Ashdod." — Market Analysis
In contrast, Tel Aviv-Yafo registered an increase. The median price per square meter rose from 43,368 NIS in 2024 to 44,554 NIS in 2025, a 2.7% addition. Haifa recorded a 1.7% increase, moving from 19,200 to 19,519 NIS per square meter, while Kiryat Gat saw its median rise by 3.7% to 18,826 NIS per square meter.
These figures illustrate that the Israeli housing market cannot be treated as a monolithic block. Furthermore, the slowdown in housing market activity throughout 2025, manifested in fewer apartments sold and continued weakness in the secondhand market, underscores that transaction volume and geographic mix are critical to understanding the true state of real estate.
