Housing snapshot July 2026: In shadow of Iran war, home prices fall 0.3% in March-April

Home prices in Israel declined in March and April 2026, falling by 0.3 percent compared to the previous two-month period, according to the most recent report released by the country’s Central Bureau of Statistics.

Prices have fallen 1.3% compared to the same period a year earlier, marking one of the few sustained annual declines in the past decade, CBS said. Prices have declined in nine out of the last 12 months.

The decline follows market uncertainties regarding Israel’s war with Iran, which began on February 28.

Israel’s housing market has slowed over the past year, partially in reaction to the multifront war Israel has been engaged in since Hamas invaded southern Israel on October 7, 2023. High interest rates, a record supply of unsold new housing, and high prices have also helped to tamp down sales. The shekel’s strength against the dollar, currently at circa NIS 3.00, is also affecting demand from overseas buyers.

The Bank of Israel reduced the interest rate to 3.5% on Monday, its third rate cut this year. The decision was made in light of the US deal with Iran, eased global geopolitical tensions, and a stable inflation environment, it said.

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During the two-month period, prices rose by 0.7% in Tel Aviv and 0.2 in the central district. Prices fell by 2% in Jerusalem, 1.9% in Haifa, 0.9% in the south, and 0.2% in the north, CBS said.

Compared with the same period last year, prices climbed 1.7% in Jerusalem and 2.5% in the north. Prices fell by 3.1% in the central district, 1.9% in Tel Aviv, 1.1% in Haifa, and 1.1% in the south.

According to Finance Ministry data for April, a total of 5,081 apartments were sold, a 19% decline compared to April 2025. Transactions dropped 31% compared to the previous month.

The number of transactions in April 2026 was exceptionally low by historical standards, the ministry noted. During March, the effect of the war with Iran on the market was somewhat more moderate.

New apartment sales, including subsidized units, totaled 2,107 units in April, marking an 11% drop compared to April 2025. A total of 2,974 secondhand apartments were sold, a 24% decline compared to last year.

Investor activity decreased significantly during the month, with 751 apartments purchased by investors, a 12% decline compared to April 2025 and a sharp 43% drop from the previous month. At the same time, investors sold 922 apartments, representing a 28% decline compared to both the same period last year and the previous month.

A recent survey published by Finance Ministry senior deputy to the chief economist Galit Ben Naim showed that Jerusalem led the nation in purchases by foreign buyers last year. In 2025, 684 homes were bought by foreign buyers in Jerusalem, compared to 186 in Tel Aviv, 169 in Netanya, and 137 in Beit Shemesh. Bat Yam was a distant fifth place with 44 sold.

A report last month from the state comptroller found that, while urban renewal efforts have expanded rapidly in recent years, major structural problems have slowed progress and deepened regional inequalities.

Between 2021 and 2024, authorities approved about 157,000 housing units through urban renewal plans designed to address housing shortages and improve safety against earthquakes and missile attacks. However, most projects have been concentrated in the Tel Aviv and central regions, while northern and southern areas, which are often more vulnerable to seismic and security risks, lag far behind due to weaker economic incentives for developers, the report found. Bureaucratic delays have also undermined these goals, it said.

Sales

To provide the housing snapshot below, we used the Israel Tax Authority’s database, which records the actual prices paid for properties. The focus is on sales over the last month to present the most up-to-date picture of the market.

In Tel Aviv, a four-room (three-bedroom) apartment at 5 Prazon Street sold for NIS 2.61 million ($869,000). The apartment measures 112 square meters (1,206 square feet) and is located on the ground floor of a seven-story building constructed in 2024.

A four-room (three-bedroom) apartment at 8 Rama Street sold for NIS 3.53 million ($1,176,667). The apartment measures 113 square meters (1,216 square feet) and is located on the third floor of a nine-story building constructed in 2014.

A three-and-a-half-room (two-bedroom) apartment at 112 Mordechai Namir Road sold for NIS 3.41 million ($1,136,667). The apartment measures 65 square meters (700 square feet) and is located on the first floor of a six-story building constructed in 1960.

In Jerusalem, a three-and-a-half-room (two-bedroom) apartment at 10 Beit Hakerem Street sold for NIS 3.475 million ($1,158,333). The apartment measures 63 square meters (678 square feet) and is located on the second floor of a three-story building constructed in 1960.

A three-room (two-bedroom) apartment at 13 Avital Street sold for NIS 3.45 million ($1,150,000). The apartment measures 85 square meters (915 square feet) and is located on the fifth floor of a 14-story building constructed in 2023.

A four-room (three-bedroom) apartment at 27 Avraham Yaari Street sold for NIS 2.84 million ($946,667). The apartment measures 96 square meters (1,033 square feet) and is located on the fifth floor of a six-story building constructed in 2007.

In Beit Shemesh, a four-room (three-bedroom) apartment at 46 HaNasi Street sold for NIS 2.66 million ($886,667). The apartment measures 111 square meters (1,195 square feet) and is located on the tenth floor of a 10-story building constructed in 2016.

A four-room (three-bedroom) apartment at 3 Rabbi Shlomo Lorincz Street sold for NIS 2.35 million ($783,333). The apartment measures 95 square meters (1,022 square feet) and is located on the third floor of a five-story building constructed in 2019.

In Haifa, a four-room (three-bedroom) apartment at 107 Derech Hayam Street sold for NIS 2.55 million ($850,000). The apartment measures 107 square meters (1,152 square feet) and is located on the first floor of a five-story building constructed in 2024.

Rentals

The database of the real estate website Madlan was used to compile this sample of rental apartments on the market, with a focus on three-room (two-bedroom) properties, suitable for a couple, two roommates, or a small family.

In Tel Aviv, a four-room (three-bedroom) luxury apartment at 144 Menachem Begin Road in the Midtown complex is available for rent at NIS 16,500 ($5,500) per month. The apartment measures 115 square meters (1,238 square feet) and is located on the 40th floor of the building.

A four-room (three-bedroom) apartment at 57 Shtulim Street in the Ezra and Ha’argazim area is available for rent at NIS 8,700 ($2,900) per month. The apartment measures 120 square meters (1,292 square feet) and is located on the 15th floor of the building.

In Jerusalem, a four-room (three-bedroom) apartment at 42 Tchernichovsky Street in the Rasco (Rose Garden) neighborhood is available for rent at NIS 5,000 ($1,667) per month. The apartment measures 105 square meters (1,130 square feet) and is located on the 3rd floor of the building.

A five-room (four-bedroom) apartment at 10 Yitzhak Ernst Nebenzahl Street in the Arnona slopes area is available for rent at NIS 9,100 ($3,033) per month. The apartment measures 138 square meters (1,485 square feet) and is located on the 6th floor of the building.

In Haifa, a three-room (two-bedroom) apartment at 12 Smolenskin Street in the Ahuza neighborhood is available for rent at NIS 6,900 ($2,300) per month. The apartment measures 80 square meters (861 square feet) and is located on the 5th floor of a seven-story building.