The real estate market has been sluggish for most of 2025, partly due to the war, high interest rates, record numbers of unsold new homes, and high prices. The strengthening of the shekel against the dollar also affects the demand from foreign buyers.
Jerusalem showed the sharpest decline in a two-month period by 0.9%, followed by the district of the Center with a drop of 0.6%. In Tel Aviv, prices rose 0.7%, while the Southern District and Haifa showed a slight rise of 0.1%. Over the past 12 months, prices have increased in Jerusalem (5.4%), the north (3.2%), the south (0.6%) and Haifa (0.5%). At the same time, they decreased in the Central District (3.9%) and Tel Aviv (2.8%).
According to a CBS report, as of July 2025, there were about 3.02 million housing units in Israel, of which 69.8% are owner-occupied and 29.6% are for rent. For comparison, in 2013, 75.2% of Israelis lived in their own homes. In Tel Aviv, 49.4% of residents rent a house, and in Jerusalem, 32.3%.
Source: Times of Israel
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