The real estate market has slowed down due to the war, which has been going on since October 2023. Additional pressure is exerted by high interest rates, a record number of unsold new homes and the strengthening of the shekel against the dollar, which has reached a 30-year high (2.98 shekels per dollar). It is important to note that the CBS data does not yet take into account the consequences of the joint US-Israeli strikes on Iran in March and April, which are expected to further slow down the market.
Price dynamics vary greatly by region. In two months, prices decreased in Jerusalem and Tel Aviv by 0.7%, while rising in the north (+0.9%), the central district (+0.5%), Haifa (+0.3%) and the south (+0.2%). Over the past 12 months, Jerusalem has shown the largest growth (+4%), while Tel Aviv and the central district have lost 5.1% and 3.1%, respectively.
According to the Ministry of Finance in February, a total of 7,187 apartments were sold - 3% less than a year earlier. Sales of new apartments (including those subsidized by the state) fell by 13% to 2,520 units. At the same time, the secondary market showed a slight increase: 4,667 apartments were sold, which is 3% more than in February 2025.
Source: The Times of Israel
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